Crane Data Subscribers
Top 10 Money Fund Stories of 2007: Inflows, Bailouts, and Competition. Paradoxically, 2007 should go down as one of the best years in money funds' 35-year history. While funds endured SIV and ABCP trauma and bailouts, everyone's "bucks" held fast at $1.00, and inflows into funds dwarfed any seen historically. Our Crane 100 Money Fund Index, an average of the 100 largest taxable money funds, returned 4.99% in 2007. ICI's statistics should show money fund assets increasing by over $730 billion, or 30.7%, to a record $3.12 trillion, in 2007. To date, we've seen 8 advisors take action to remove or protect defaulted or downgraded securities from their funds, and we could see more. But investors have not been, and likely will not be, impacted. We also saw increased competition and interest in the institutional money fund segment, which now accounts for almost two-thirds of money fund assets. Low-expense share classes, more online trading portals, and extended operating hours marked this trend. Over the next several days, we will highlight our "Top 10 Money Fund Stories of 2007". Merry Christmas and Happy New Year to all, and thank you for your support in 2007!
