Article by: David K. Randall
Posted by: Dan Hughes
Some of the nation's largest mutual fund firms, including Vanguard, Fidelity Investments and Charlers Schwab Corp., are closing their safest money market funds at the time when investors are ravenous for security. All three firms have taken similar steps in recent weeks to close Treasury money market funds to new investments.
The $40 million pension fund for the Orange County Sheriff's Office in Orlando, Fla., once invested in the Vanguard Treasury Money Market fund because it was considered risk-free. The fund is fully invested in short-term securities backed by the full faith and credit of the U.S. government.