GE Enhanced Cash Trust Redeeming Holdings at 96 Cents Says Barron's. Barron's put out the article, "Mortgage Woes Damage a GE Bond Fund" late Wednesday, saying that GE Asset Management's $5.6 billion Enhanced Cash Trust is offering investors to "redeem their holdings at 96 cents on the dollar". Reuters initally incorrectly reported that this was a money market fund, but has since corrected its story. This is not a "money market fund", and no "2a-7" money funds have broken below $1.00 a share. GE, though, becomes the first "enhanced cash" fund to publicly "break the buck", though of course these funds never pledged to maintain stable NAVs. Crane Data estimates that these "3c-7" private placement "cash plus" and "enhanced cash" fund assets total $120 billion, down from $150 billion just weeks ago. GE says its other cash plus and money market funds are unaffected by the move. Federated recently reimbursed investors $4.9 million for losses in its enhanced fund and exited the sector, and Columbia's set aside $300 million to protect its mammoth Strategic Cash portfolio. See also Bloomberg's "GE Bond Fund Investors Cash Out After Losses From Subprime".

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