Yesterday, ignites.com featured a poll and story "Low Yields Are Top Money Fund Threat",which says, "The Federal Reserve's record low interest rates are the biggest near-term threat to money market funds.... Roughly 43%, or 235 voters, said the Fed's policy of keeping interest rates at near zero is the top risk facing the funds. That made the choice the most popular in a survey tracking the top short-term challenges facing money funds. Nearly one-fourth of respondents, or 125 voters, indicated that moving a money fund's fixed $1 net asset value (NAV) to a floating $10 NAV would be the biggest challenge to the investment vehicles, putting the option in second place. Meanwhile, 17%, or 91 voters, said a fund's breaking the buck, an occurrence that would likely cause widespread investor panic, is the top risk. Further, 13%, or 72 voters, said overregulation is the biggest near-term challenge confronting such funds. The option receiving the fewest number of votes in the survey is the discontinuation of the Treasury insurance program, which expires on Sept. 18, 2009. That option garnered only 4%, or 24 votes."
