Fundsters have been fighting hard against the Securities and Exchange Commission's (SEC
's) second round of proposed money market fund regulations, but how are investors reacting. Kirsten Grind of the Wall Street Journal reports
on possible individual investor reactions to the SEC's proposals.
The article does not address institutional investors' reactions to the SEC's ideas.
highlights a Fidelity
] survey, which found that 23 percent of its individual investors would ditch money funds altogether if one SEC proposal, for redeeming investors to only receive 97 percent of their cash immediately, followed by the rest in thirty days.
Money fund tracker Peter Crane
of Crane Data
notes that, for retail money fundinvestors, "it's all about yield," not "safety issues." Yet Vanguard
] chief Bill McNabb
says "the most important things" for retail money fund investors are "stability and liquidity."
also offers the testimony of two individual investors with money fund assets. Fidelity money market chief Nancy Prior
also weighed in for the story.
Neil Anderson, Managing Editor
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