Here’s a summary of the main problem and solutions discussed:
- Main Problem: The user, Skyler, is unable to change the core position of their cash management account to SPAXX or a similar money market fund, receiving a message that no new core positions are available.
- Solution: The core position for cash management accounts (CMAs) is set to the FDIC-Insured Deposit Sweep Program, meaning SPAXX is not an eligible core position.
- Alternative Solution: Skyler can still invest in SPAXX by placing a trade within the account, following specific steps to do so.
- Additional Information: Skyler can hold cash in secondary money markets that can liquidate similarly to a core position, provided they meet certain criteria for auto-liquidation.
Skyler
03/27/2024 at 08:54:12 PDT
Is it still possible to change the core position of a cash management account to SPAXX or similar money market fund?
When I try to change from my current cash deposit sweep core position it says, “There are no new core positions to select.”
I am almost certain that at some point my core position was set to SPAXX and I don’t remember changing it back over to cash.
Thanks!
FidelityCourtney
03/27/2024 at 11:35:14 PDT
Thanks for stopping by today! I can certainly help out today.
The core position for our CMAs is the FDIC-Insured Deposit Sweep Program. The Fidelity Government Money Market Fund (SPAXX) is not an eligible core position in the CMA.
That said, you can invest in SPAXX even if it is not available as a core position in the account. To do so, you would simply place a trade in the account in which you wish to hold SPAXX. To buy SPAXX as an investment holding in your account, follow these steps:
1. Click “Accounts & Trade” and select “Trade”
2. Make sure the desired account is selected and change the “Trade” box to “Mutual Funds”
3. Complete the required fields and submit the trade
While SPAXX would not be considered a core position if you purchased it inside your CMA, you can still hold cash in non-core money markets that liquidate similarly to a core money market. These are called secondary money markets. Upon a withdrawal of cash, once the core balance is depleted, the system will pull from any eligible secondary money market fund to cover the transaction at no expense to you. For a secondary money market to be eligible for auto-liquidation, all of the following criteria must be met:
– Fidelity Investments Money Market (FIMM), non-FIMM government, retail prime, and retail municipal funds
– Maintains a stable net asset value
– A liquidity fee has not been imposed
If any other questions come up, please let us know. We’re happy to help! 🟢
Skyler
03/27/2024 at 11:38:05 PDT
Understood, thank you!
FidelityCourtney
03/27/2024 at 11:44:50 PDT
You’re welcome! 🟢