Danareksa president Iwan Pontjowinoto is also trying to set up an Islamic money-market fund that will help Sharia banks handle excess liquidity.
Reserve Primary, launched in 1970, was the country's first money-market fund.
In most 401(k) plans, to move money from a stable-value account into a money-market fund or short-term bond fund, plan participants have to be invested in a riskier option for at least 90 days.
Today nearly everyone has come to think of money as abstract--an entry on a money market fund statement, for example.
Admittedly, with my U.S. Treasury-backed money market fund, I am only making 0.01% per year in interest income.
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Many investors who put their money into an emerging-market fund a few years ago are now feeling exactly the same.
Danone also has a 70 million-euro money market fund, called Danone Communities, which it seeded with 20 million euros in 2006.
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The point is that investing in the highest-yielding money market fund may not always be the smartest idea given the additional risk.
This would prevent any more money market panics of the kind that recently gripped local governments in Florida, which had a run on a state-managed money market fund that had some questionable securities.
To prevent yield chasing, most stable value funds prohibit transfers to similar options, such as a money market or short-term bond fund.
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As asset managers smell opportunity at the margin of cash, it remains to be seen if the money market fund of tomorrow is, in fact, an exchange-traded fund.
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For the daring and the tax-conscious, a municipal money market fund is plausible.
As we discovered recently in one of our investigations, the custodian was receiving an undisclosed 5 basis point revenue sharing fee or kick-back from the affiliated money market fund.
Money-market funds are a specialized kind of mutual fund that is restricted to investing in very short-term securities with little chance of default.
But if you have less than five years before your kid sits down to freshman composition, a risk-free certificate of deposit, money market fund or even a traditional savings account is a better bet.
That includes everything from a mundane money market fund to something as complex as a Madoff-linked bank note.
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As for Spanish banks, they seem to me to be on the cusp between needing bailout-fund money or muddling through with help from the Spanish government and the market.
Turns out that the Primary Fund, like many other money market funds, made significant investments in asset-backed commercial paper (ABCP), which offered juicy yields, but did so because they were backed by things like mortgages, auto loans, credit card receivables and other risky assets that, despite their risk, came with investment-grade ratings.
The secret to Warren Buffett's success is old-fashioned value investing - not looking for the quick gain from speculative stock market movements, but putting the fund's money into undervalued but promising companies in slightly unfashionably industries.
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