Earnings Credit Rate (ECR) on the Decline?
Earnings Credit Rates (ECRs), the rates banks typically offer their larger deposit relationships as an offset to monthly fees, continue to trend downward. Given the already low interest rate environment, any decline in the ECR is likely causing a measurable drag on your overall deposit ROI and affecting your short-term cash management returns. Are you taking a closer look at money funds to diversify your short-term cash?
Consider the RNT Natixis Liquid Prime Portfolio
- Ranked #6 by Crane Data among 162 Institutional Prime Money Market Funds in the 7-Day Yield category as of May 10, 2013 (LQTXX .08%)
- Rated Aaa-mf by Moody’s and AAAm by Standard and Poor’s
- Portfolio holdings and approved issuers list posted daily
Contact us to learn more about how the RNT Natixis Liquid Prime Portfolio can potentially offset what you may be giving up due to a decreasing ECR.
Past performance is not a guarantee of future results. Investment returns and the principal value of money market funds will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current yields may be higher or lower than the yield data quoted and the Fund’s performance ranking may vary. Yield quotation more closely reflects the current earnings of the money market fund than the total return quotation.
Please consider the investment objectives, risks, charges and expenses of the money market funds carefully before investing. The prospectus contains this and other information about the funds. Please read it carefully before investing. To obtain a prospectus, please call Reich & Tang at 800 433-1918. An investment in money market funds is not insured or guaranteed by the FDIC or any other governmental agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds.
Credit ratings do not provide assurance against default or other loss of money and can change.
Standard & Poor's money market fund rating criteria reflect an opinion of the safety of invested principal based on an analysis of portfolio credit quality, market price exposure, and conservative management. A money market fund rating is not a recommendation to buy or sell. Ratings do not serve to remove market risk and are subject to change.
Go to www.moodys.com for Moody's Managed Funds Credit Quality Ratings Methodology.
Money market funds distributed by Reich & Tang Distributors, Inc. Member FINRA