CHICAGO, March 3 /PR Newswire/ -- The recent strength in the economy and the relatively low-rate environment have led to an increasing level of risk being introduced to money market fund complexes to help them obtain competitive yields. One way for investors to wade through the increasingly competitive offerings and ensure the funds are effectively managing the risks inherent in money  market mutual funds is by turning to ratings, points out a new special report published by Duff & Phelps Credit Rating Co. (DCR).

DCR's ratings offer institutional investors comfort in the stability of the net asset value of the fund and an independent assessment of the processes used to manage the fundamental risks of money market fund management. DCR places significant emphasis on both qualitative and quantitative measures that are used to manage the primary areas of risk of a fund, according to the report. DCR's ratings, as assigned, provide an indicator of the fund's ability to maintain a stable $1.00 net asset value, as well as its ability to meet shareholder redemption requests in a timely manner.

DCR's new Rating Methodology outlines our approach to assigning ratings to money market funds. "DCR's assessment places significant emphasis on qualitative processes used to manage the primary areas or risk in the fund", according to Lamindy Brandon-Joseph, a DCR analyst and co-author of the report. DCR ratings incorporate quantitative risk measures as well.

ST: New York

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