Fidelity in cash funds warning

The company said not all cash funds were the same, as some riskier investment style money market funds, known as enhanced yield offerings, chased higher returns by taking on a level of risk. Investment style money market funds can also buy into instruments with a lower level of overall credit quality, such as US sub prime and collateralised debt obligations, areas which have been significantly problematic in recent weeks, after the meltdown of the US sub prime mortgage market. Such funds differ from treasury style cash funds, which principally seek capital preservation by investing in...