last week reopened four money market funds that it had closed to most new investors in December 2008. Reuters
on the move.
The Boston Behemoth on July 1 reopened the U.S. Treasury Money Market Fund, Institutional Money Market (FIMM): Treasury Portfolio (all classes), Institutional Money Market (FIMM): Treasury Only Portfolio and Cash Management Fund: Treasury Fund (all classes).
"We have decided that it is appropriate to reopen the funds to new shareholders," Fidelity spokesman Vin Loporchio wrote in e-mailed comments to The MFWire
. "Since the closings, the funds' higher-yielding securities have matured and the funds have reinvested the proceeds in new securities at the current market rates in the normal course of business, which were lower than the rates of the securities that matured."
"In addition, Treasury yields are beginning to rise, and with an improved rate outlook over time, we believe that new inflows can be invested at the higher rates," he added.
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