FRSXX – Auto Liquidity Feature?
Summary of User’s Inquiry and Solutions Discussed:
- Main Problem: The user, Juiced, wanted to know if the FRSXX fund at Fidelity has an auto-liquidity feature for covering wire transfers.
- Solution Confirmation: Fidelity representatives confirmed that FRSXX is auto-liquidation eligible and can be liquidated for outbound wire transfers.
- Liquidation Process Explanation: Fidelity explained that if the core has insufficient funds, they will first draw from taxable money markets, then tax-free money markets, starting with the fund that has the highest balance.
- Clarification on Fund Types: It was clarified that Fidelity Money Markets and Fidelity Investment Money Markets refer to the same type of funds.
Here’s the full thread
Hi Fidelity, does FRSXX [Fidelity® Investments Money Market Treasury Only – Institutional Class] have the auto-liquidity feature? For example, if I only had that fund in my brokerage account, and I wanted to make a wire transfer for a closing of house, will Fidelity auto-sell shares to cover the wire?
I dont believe so, that only works with SPAXX i think.
@Juiced It should, last i checked when I had money in fidelity’s money market funds
I bet eli. Is more right them me lol
Hello there, @Juiced. Thanks for reaching out.
I can confirm that Fidelity Investments Money Market Treasury Only – Institutional Class (FSRXX) is auto-liquidation eligible.
To expand on the liquidation process, please know there is an order in which money markets will liquidate. If the core has insufficient funds alongside other money market mutual funds in the account, we will draw from the taxable money markets first, then the tax-free money markets. We draw from the fund with the highest balance within each category first. That said, it is best practice to sell non-core money markets before expected purchases.
– 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
Please let us know if you have further questions. We’ll be around to help out. 🟢
Thank you. Could you explain more about FIMM vs non FIMM? Aren’t all Fidelity MM funds FIMM? Or is that not what it means?
And outbound wires from Fidelity would also liquidate FRSXX, just to confirm the specific transaction I’m looking at.
Hey there, @Juiced.
To clarify, Fidelity Money Markets and Fidelity Investment Money Markets are the same thing. You’ll usually just see them referred to as Fidelity Money Markets.
For your second question, yes, FRSXX would be liquidated if necessary to complete an outbound wire transfer.
Let us know if any other questions come up! 🟢