Investment News writes "Money fund assets 'bleed out' as low interest rates persist, managers say". The article says, "The continued zero interest rate environment may be presenting a bigger challenge to money market mutual fund managers than rule changes proposed by the Securities and Exchange Commission, several managers told participants today at the Money Fund Symposium in Providence, R.I." It quotes Deborah Cunningham, chief investment officer for the Pittsburgh-based Federated Investors Inc., "If all of the [SEC] proposals come to fruition, the industry continues.... Investors may lose out on a couple of basis points of yield. But it would not cause major issues." The article continues, "Under the proposed SEC rules, money funds would be prohibited from purchasing illiquid securities and anything less than the highest-quality securities. Additionally, they would be required to hold a certain percentage of assets in cash or Treasury securities so they could be converted to cash easily.... The current low interest rate environment, however, will likely put even more pressure on money fund managers, said speakers at the conference, which is sponsored by Crane Data LLC of Westborough, Mass.... Still, money funds added $892 billion in assets in the last two years, representing a growth of 33%, he said." "We're not dead yet," Mr. Crane said.
