Money market funds are mutual funds that are open-ended and invest in short-term securities. They usually invest in commercial paper, treasury bonds, and repurchase agreements. They are considered to be better than bank accounts because they are low-risk and have relatively higher returns. These funds are required to be stable so that they are able to pay dividends to the investors.
The first money market fund was started in 1971.
Money market funds were responsible for the adoption of mutual funds by the general public. There are several types of money funds. They are characterized according to securities that they invest. Treasury money funds invest more than 99% of its assets in repurchase agreements and government securities. Prime money funds invest in commercial paper and variable debt of the government. Retail money funds are offered to individuals, but they have high servicing fees. They are not insured, but they have higher return yields.
Bruce Bent II is the president and vice chair of Double Rock Corporation. He has been involved in the success of the firm. Double Rock offers technology solutions for cash management to banks, retail markets, and brokers. He has an indepth understanding of money market funds.
Bent serves as a senior executive at each of the subsidiary companies of Double Rock including Island Intellectual Property, Landing Rock Group, and Access Control Advantage. Bent II has various patents to his name for his role in the development of innovative cash management solutions. He was instrumental in the transformation of the cash management industry into a trillion dollar market.
Bent II studied at Northeastern University and graduated with a Bachelor of Science degree in Philosophy. He was appointed the assistant treasurer of Hallmark First Mutual Fund and the director of Reserve in 2000. He assumed the role of Senior Vice President and co-chief executive officer of Hallmark Investment Series Trust five years later.
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