Unfair treatment of investors in money market funds during market disruptions.
Money market funds in Egypt showed discrepancies in value during market disruptions due to accounting methods. Using amortized cost instead of floating NAV led to unfair treatment of investors. High interest rates caused significant differences between the two values, especially for longer-duration funds. Investors who stayed in the funds faced losses, while those who redeemed their certificates did not share the losses. Switching to floating NAV calculations during market disruptions could promote fairness for all investors.