Federated Enters Super Institutional Market, Exits Enhanced Cash. Standard & Poor's just rated Federated Money Market Management AAAm. The fund is Federated's oldest, introduced in 1974. Today it launched a new 13 basis point expense class, Premier Share, with a $100 million minimum investment. Federated joins Wells Fargo, UBS, and soon Fidelity in the latest move towards "super-premium," low-expense, high-yield money funds. (See our July Money Fund Intelligence "How Low Can Expenses Go?" and the pending November MFI Wells Fargo profile.) On Friday, Federated also revealed a $4.9 million capital loss on an "enhanced reserve private placement short-term investment option" (not a money fund), and said it is withdrawing from the enhanced cash sector for now, putting this product into "incubation". The fund "did not reach critial mass" and there were "no client losses in the product" said the company on its recent quarterly earnings conference call.
