Are my money market fund (MMF) investments safe?
Your money market fund (MMF) investments are segregated and securely held by Bank of New York Mellon (BNY). These funds are invested in the Dreyfus Government Cash Management fund (DGVXX). They are held as shares by you, the customer, through our Brex business account and managed by Brex Treasury through the custodial record per your selected allocation.
While clients should consider the investment objectives, risks, charges, and expenses of the DGVXX fund carefully before investing, you should note that the securities in which the fund invests include those backed by the full faith and credit of the US government. These include US Treasury securities as well as securities issued by certain agencies of the US government, and 99.5% are invested in instruments fully backed by the US government / are fully collateralized by other assets fully backed by the US government. The main priorities of the fund are to preserve capital and liquidity while earning the highest level of current income possible.
As a registered broker-dealer, Brex is required to segregate our money from customer funds (i.e., customer assets cannot be commingled). Customer funds held in the DGVXX fund are also segregated from the fund managers. In the unlikely event of a failure of BNY, all customer assets will be transferred to another broker-dealer. Should any assets be unaccounted for following this, Securities Investor Protection Corporation (SIPC) covers $500K worth of assets (with up to $250K being cash). Any funds allocated to MMF via Brex business account are considered securities because they are held as shares of the DGVXX fund, instead of as cash.
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