Wall Street Journal Fund Track
, Daisy Maxey collected opinions from Fidelity
, Federated Investors
officials on the SEC's proposed changes to rules governing money market funds.
Fidelity spokesman Vin Loporchio told Maxey that the Boston firm, which had more than $500 billion in money fund assets at the end of May, backs changes that would strengthen the security of the funds, but it
doesn't think that "radical changes to the way money-market funds are organized or regulated" are necessary.
Vanguard chairman Jack Brennan
, who led ICI's money fund working group, praised the SEC for tackling the major factors concerning money-market safety and liquidity. As for the proposal restricting the maximum weighted average life maturity of a money-market fund's portfolio, Brennan said that may be too limiting for several retail funds. The ICI working group had proposed a 75-day average maturity.
For his part, Federated CEO J. Christopher Donahue
said that overall, the SEC's proposals came out well, but he will bring up concerns about some of the commission's suggestions, such as the distinction between retail and institutional funds as far as illiquid securities are concerned.
The SEC, which proposed the rules on Wednesday, will solicit public comment
for 60 days.
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