​ Federated Enters Super Institutional Market, Exits Enhanced Cash. Standard & Poor'​s just rated Federated Money Market Management AAAm. The fund is Federated'​s oldest, introduced in 1974. Today it launched a new 13 basis point expense class, Premier Share, with a $​100 million minimum investment. Federated joins Wells Fargo, UBS, and soon Fidelity in the latest move towards "​super-​premium," low-​expense, high-​yield money funds. (​See our July Money Fund Intelligence "How Low Can Expenses Go?" and the pending November MFI Wells Fargo profile.) On Friday, Federated also revealed a $​4.​9 million capital loss on an "​enhanced reserve private placement short-​term investment option" (​not a money fund), and said it is withdrawing from the enhanced cash sector for now, putting this product into "​incubation". The fund "did not reach critial mass" and there were "no client losses in the product" said the company on its recent quarterly earnings conference call.

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