Not Quite Day Trading

One much-anticipated feature of the daily valuation system is the end of the prior lag time-ranging from two to six weeks-imposed on interfund transfers. Many investors had complained that the delay hampered their ability to take advantage of changes they anticipated in the financial markets and that during down times for the markets the delay caused them to suffer continued losses after they had asked to move out of a fund. Under daily valuation, investors will be able to move money among the funds as often as every business day. However, a transfer request will have to be received by 11 a.m. Central time in order to be processed that day and occur at a fund’s price as of the close of business on that day. Requests received later will be processed on the following day and will occur at a fund’s price as of the close of business on the second day.