Fitch Ratings posted an article entitled, "Why Short-Term Bond Funds Warrant a Longer Look." (Note: Crane Data released the April issue of its Bond Fund Intelligence Friday.) Fitch says, "Some investors are considering short term bond funds as an alternative to money market funds in light of recent reforms and the current low yield environment in the US and in Europe. However, there are important differences between money funds and short term bond funds. While the latter may provide a higher yield, that comes with additional risks relative to money funds." Their update explains, "Investors who segment their cash between true daily liquidity needs and longer term cash may consider the higher risk of short-term bond funds acceptable in return for more yield. A sample of ultra-short bond funds Fitch reviewed showed an average yield of 0.80% for US dollar denominated funds as of year-end 2014, compared to a yield of just 0.04% posted by institutional prime funds in the same currency." The piece adds, "Asset managers are increasingly launching new short-term bond funds in response to growing investor interest. For example, Goldman Sachs and Western Asset, among the largest managers of money funds, recently launched new ultra-short bond funds to attract displaced money fund investors. Other managers are also coming to market with new offerings in the US and in Europe, but the market remains small and fragmented compared to money funds. Short-term bond funds are not as standardized as money funds, with duration, maturity and portfolio credit quality varying greatly. In fact, with no standard naming conventions for the funds, classifications can vary between different fund managers and data providers. Common characterizations of these funds include 'enhanced cash', 'cash plus', 'short-term', 'short-duration', and 'ultra-short-term'." See also the release, "Fitch Affirms 6 South African Money Market Funds at 'AA+(zaf)'/'V1(zaf)'."

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