The Boston Globe
devoted an article
Sunday to Fidelity's
money market fund business which, reporter Todd Wallack
points out, is starting to rival the Boston Behemoth's equity business.
Close to 40 percent of Fidelity's $1.358 trillion of AUM are in
money market funds. The firm's largest money market fund,
, holds $138 billion, which is more than double
the size of Fidelity's largest equity fund, the $52 billion Contrafund.
“This is a franchise business for Fidelity," said Charles S. Morrison II
, president of the company’s Money Market Group,
was quoted in the paper as saying.
In the first half of the year, three-fourths of the $43 billion that
Fidelity added went to its money funds.
During the past year, against the backdrop of the financial crisis,
Fidelity's funds sidestepped losses and while yields in several money market funds
were close to zero, some of Fidelity's money funds paid much higher rates.
“Fidelity had zero loss events in protecting their shareholders. It’s just astounding,"
said Peter Crane, president of Crane Data. “Fidelity has been both good and lucky in the last couple years."
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