Money Market Funds and Options

Our International Account offers Money Market Funds.  A money market fund mainly buys the highest rated debt, maturing in under 13 months. The portfolio must maintain a weighted average maturity (WAM) of 60 days or less and not invest more than 5% in any one issuer, except for government securities and repurchase agreements. The money market fund  is a type of mutual fund that is required by law to invest in low-risk securities. These funds have relatively low risks compared to other mutual funds and pay dividends that generally reflect short-term interest rates. Unlike a “money market deposit account” at a bank, Money Market Funds are not federally insured.

Money Market Funds are typically invested in:

  • Government securities.
  • Certificates of deposit.
  • Commercial paper of companies, or other highly liquid and low-risk securities.

Money market instruments are forms of debt that mature in less than one year and are very liquid. They seek to limit exposure to losses due to credit, market, and liquidity risks.

Financial Instuments: