Friday, March 20, 2009


Average money market fund yields

The ordinary seven-day yield on taxable money market funds is 0.70 percent after disbursements, according to IMoneyNet. The medium disbursement ratio is 0.60 percent.

"60 percent of money market fund societies are throwing overboard a part of their management fee, up of 58 percent a year ago," according to Peter Crane, V.P. and managing editor at IMoneyNet.

"There are many that have a permanent waiver. They have been subsidising a few disbursements, so it's tough to tell whether they're waiving or not. A few never intend to recoup the costs."

Money market funds are not federally secured, but they are ordered as to the quality, maturity date and variety of the security measures in which they invest. Among the most common investments are short-term agency security and superiority corporate debt. The goal is to sustain a $1 share price while trading securities to get the maximum yield.