In China, money market funds are all priced by amortized cost method, and then the net asset value of funds is evaluated by "shadow pricing". The amortized cost method is to calculate the interest receivable based on the bond investment coupon rate, and then amortize the discount at the time of purchase according to the effective interest rate method within the remaining period, and calculate the net asset value of the fund based on the amortized cost; Shadow pricing uses market interest rate and transaction price to evaluate the fund's net asset value. The deviation of money market funds is the deviation of the net asset value of funds in the above two pricing methods.
How to deal with the deviation of monetary funds? Due to the constant fluctuation of market interest rate and transaction price, it is inevitable that the assets calculated by the two valuation methods of money market funds will deviate. As long as the deviation is within the specified range, it can be ignored; Once out of range, the following adjustments should be made:
If D≤0.5%, the net asset value of the fund is determined according to amortized cost, and the net asset value of the fund is N=Na.
If d> is 0.5%, the book value of the portfolio is adjusted according to the fair value index, the net asset value of the fund is N=Nb, and the adjustment difference is Nb-Na, which is calculated according to the fair value index.