Addressing Risk in Money Market Funds

Capital Advisors Group (CAG), a leading institutional investment advisor focused on short-term cash investing,  announced the launch of FundIQ – “the industry’s first money market fund research product designed to help treasury professionals pursue investment performance by applying the firm’s new fundamental risk analysis process and an independent credit opinion to institutional prime money market funds.” (press release, 5/17/10)

Ben Campbell, Capital Advisors Group’s President and CEO noted,

The most interesting part of this research is that all of the funds we evaluate today are rated triple-A by nationally recognized ratings agencies, yet we still find notable variances in the inherent risk in the funds based on the research method we use. This deeper level of risk assessment is meant to help treasurers who simply don’t have the time or resources to conduct the level of due diligence required to support their money market fund investment decisions. FundIQ was developed in response to these treasurers’ concerns and we hope that they can now invest more confidently knowing that a research team has invested a great deal of time and effort in assessing some very specific risk factors within these funds.

Comments are closed.

Powered by WordPress. Designed by WooThemes