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But then, in the dark days of 2008, a run on one fund, Reserve Primary, reverberated in the industry.
In 2008, one fund, Reserve Primary, "broke the buck," falling below the $1-a-share asset value that money market funds have traditionally maintained.
By drawing on its holdings in an International Monetary Fund reserve account, it was able to repay €750m (£544m) – ironically to the IMF itself – just as the payment was falling due.
Another problem emerged this week; a $65 billion money-market fund, Reserve Primary, suspended redemptions and warned that it would "break the buck", ie, repay investors at less than face value.
A major money-market mutual fund, Reserve Primary, said that losses threatened its solvency; the Federal Reserve Fedd) offered $105 billion to shore up money funds, and the U.S. Treasury offered temporary insurance to money-fund investors.
A major money market fund — Reserve Primary — failed in September because the extra interest it offered customers derived, in part, from the $785 million in high-yielding Lehman Brothers commercial paper and notes it was holding.
Similar(47)
The objective is to assure future benefits, while controlling the contribution made to the fund reserves.
Prosecutors are still investigating Lee and the fund reserves its right to press charges, he said.
However, Varoufakis insisted that the government "has not taken a single euro from (pension) fund reserves".
In the good years, a with-profits fund reserves some of its profits to top up bonuses in poorer years.
GMG had cash and investment fund reserves of £197.5m available, after a year in which the investment fund grew by £12m.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com