The ABI has revealed plans to create a new money market fund sector, to help investors and their advisers identify funds with a greater focus on capital stability.
Earlier this year, a Standard Life money market fund, the Pension Sterling Fund, saw its value plummet due to exposure to mortgage-backed securities, leading to heightened criticism of the way insurers define this type of fund. The ABI has today launched a consultation on the rules of the new sector, and wants interested parties to submit feedback via its website by 8 May 2009. The new sector, which will be called either the Capability Stability Fund Sector or the Treasury and Deposit Fund Sector, will feature strict limits on investment types and risk. While it will not be a 'no risk...
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