Article: Despite rate cut, money funds continue to attract assets; A missed opportunity for funds comprising short-term bonds?(News)

Byline: David Hoffman

While short-term-bond mutual funds would figure to be the main beneficiaries of the Federal Reserve's half-point interest rate cut last month, it's money market funds that continue to rake in the cash.

They have been taking in money so quickly - $23.96 billion alone for the week ended Oct. 9, according to the most recent available data from iMoneyNet Inc., a money fund research firm in Westborough, Mass. - that they may reach total assets of $3 trillion by the end of the year. Assets in money funds currently stand at $2.89 trillion.

It's a missed opportunity for short-term-bond funds, said Peter Crane, president of Crane Data LLC, a money ...

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