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Article: Despite rate cut, money funds continue to attract assets; A missed opportunity for funds comprising short-term bonds?(News)
- Article from:
- Investment News
- Article date:
- October 15, 2007
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Copyright informationCOPYRIGHT 2007 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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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