Money market funds, which were a popular investment vehicle during the economic downturn, are still a popular topic of conversation, but for different reasons.
of two separate "Fund Track"
columns in today's Wall Street
looks at the recent fall in
money market fund assets, which dropped by $75.6 billion.
Money market assets fell below $3
trillion as many investors moved back into
the broader market. According to
data, as of Tuesday, money
market funds manage $2.99 trillion in
assets, marking the first dip below $3
trillion since 2007.
iMoneyNet managing editor Connie Bugbee
told the Journal that the outflows are
likely the result of Q2's corporate tax
day, which occurred on Monday.
Fund Track story this morning covers
money market fund fees. According to The
Journal, because of low interest rates,
the money fund industry has lost hundreds
of millions in waved fees.
To avoid damaging investors, fund companies
will have to wait until interest rates rise
before fees can do the same, according to
the Journal's Sam Mamudi. He cautions that
firms shouldn't raise fees to recoup losses
too quickly, ensuring that investors can see the
benefits of the rate-increase.
The Journal spoke with representatives from
, JP Morgan
, who all concurred
that "no language in their funds'
literature would allow them to recoup
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