New money market fund rules, which would start to take effect next month, could drive more firms to quit the business, notes the Wall Street Journal's
Jane Kim in her
published Monday as part of the WSJ's Investing in Funds section.
Citing data from iMoneyNet Inc.
, Kim noted that a total of 63 money market funds have either shut down or merged with others since January 2009.
Connie Bugbee, editor of iMoneyNet, pointed to three factors as triggering the trend. "The combination of cutting your expenses, waiving fees and adding more credit analysts means we'll continue to see smaller funds exit the business," Bugbee
told the pub.
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