Sunday's Financial Times features "Paul Stevens: Mutual funds industry defender", which interviews Investment Company Institute President & CEO Paul Schott Stevens (via print and video). The article says, "He also defends the money market mutual fund sector, which suffered reputational damage when the Reserve Primary Fund 'broke the buck' after Lehman Brothers went bust. He says the real problems were suffered by other less regulated cash vehicles. These were not complying with rules that funds committed to maintaining a stable price must follow and 'got into trouble because they were chasing yield'. Reserve fund shareholders will get back $0.99 in the dollar, which when added to the yield they have collected makes them more than whole, he says. But lessons have been learned, and Mr Stevens is 'very proud' that recommendations put forward by the ICI on how to make money funds more resilient were influential in a package of proposals recently put forward by the Securities and Exchange Commission."
