Tuesday, Mar 25, 2008

Money market funds, reeling from the subprime crisis, are coming under fresh pressure from falling interest rates as the funds’ yields shrink to leave little return after management fees have been covered

FT.com: Money market funds face new pressure

Dreyfus and Evergreen, two big money market fund managers, both confirmed that they had waived fees on their funds.
Susan Breakefield Fulton, who advises more than $425m in client money, said: “We’ve been paranoid since December. We had 15-20 per cent of clients’ money in money market funds and took it all out then moved it into Treasuries . . . the current market is so untransparent, there were risks there that we didn’t know about

Posted by chris @ 12:53 AM (126 views) Add Comment

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