. Get exclusive investment industry news and insights, the week’s top headlines, and what you and your clients need to know.
But rising returns have allowed fund managers to start charging more just in time to profit as customers fleeing turbulent markets move their holdings into cash. The change “will provide a significant tailwind because rising rates mean fund providers will finally be able to stop subsidizing money market funds,” says Tim Armour, chief executive officer of Capital Group, which manages US$27-billion in money market funds.
“We’ve seen the return of cash as a strategic asset. What we’re seeing is money in motion,” said Gary Shedlin, BlackRock’s chief financial officer, in an interview. The same trends are showing up elsewhere. Fidelity Investments Inc., the global leader with more than US$900-billion in money market assets, says that “the majority of our funds have exited fee waivers since the last Federal Reserve rate hike.”
Although big providers are reporting inflows to their cash management services, money market funds as a whole are not seeing an increase. There was US$4.6-trillion parked in money market funds on July 13, basically the same as in February, ICI data show.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: GlobalCalgary - 🏆 50. / 61 Read more »