Fidelity, Vanguard, and T. Rowe Price Join Treasury Department’s Money Fund Insurance Program

Three of the largest mutual fund money market management companies have joined the long list of companies opting to participate in the Treasury Department’s emergency insurance program for money funds. Fidelity Investments, T.Rowe Price, and Vanguard, who combined hold an estimated $1 trillion in money market funds, all have officially signed up for the program according to information on their respective websites.

Under the program, the government will guarantee the share price of any publicly offered eligible money market mutual fund (money fund) that applies for and pays a fee to participate in the Treasury Department program. The insurance coverage would apply only to investments held in participating money market funds on September 19, 2008.

Investors who were panicked by earlier media reports of mutual fund companies “breaking the buck” and dropping the share price on money market funds below $1, can find more information about the program and the benefits at the Treasury Department’s web site at www.ustreas.gov.