As a result, the firm said, it would not transmit redeeming proceeds of more than $10,000 for up to seven calendar days. The fund, the oldest money market fund in the U.S., will continue to accept purchase orders, however.
It is the first money market mutual fund in 14 years to lose value, the only other one being Community Bankers Mutual Funds U.S. Government Money Market Fund, a small regional fund that fell to 96 cents per net asset value in 1994. So far this year, money market fund investment advisors have spent more than $10 billion to prop up money market funds, to maintain investors faith in the products, considered as safe as federally insured bank accounts.
Money Market fund researcher Peter Crane, of
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