State Street Limited Duration Bond Fund Wrongly Called Enhanced Cash. In another case of media misinterpretation, The Boston Globe, then, incorrectly term the State Street Limited Duration Bond strategy as "enhanced cash". The Globe says the fund, which has lost over 1/3 of its value, "was widely considered an "enhanced cash" product, an investment category usually considered very low risk". However, the description of the fund clearly states that the strategy is far beyond enhanced cash, targeting a long-term bond-like LIBOR plus 50 basis points. "For those who do not require immediate access to their assets and can tolerate some price fluctuations", says SSgA's website. The Wall Street Journal correctly describes the separately managed pool as an institutional bond fund. (The WSJ and today's Boston Globe, also discuss State Street's ABCP conduit line of credit exposure.) While two "enhanced cash" pools have seen their prices decline modestly (by 1-3%), all of the more conservative "cash-plus" funds have maintained stable NAVs.

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