Investors Continue to Flee Money Funds

BrokersAllianceAnnuities · 10-03-2008, 12:50 PM

[COLOR=black]Interesting news for Annuity agents: [/COLOR]

[COLOR=black]Thursday, October 2, 2008 2:32 PM[/COLOR]

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[COLOR=black][COLOR=black]Money is still running out of money market funds, despite a Treasury announcement that it would back the instruments. [/COLOR][/COLOR]
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[COLOR=black][COLOR=black]Research firm iMoneyNet reports that investors yanked a net $40.8 billion from prime funds though Thursday. Government money market funds took in a net $82.9 billion. [/COLOR][/COLOR]
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[COLOR=black][COLOR=black]The run on funds began when the Reserve Funds Primary Fund “broke the buck” in mid-September. This week it liquidated completely, offering remaining shareholders between 30 percent and 40 percent of what was supposed to be safe money. [/COLOR][/COLOR]
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[COLOR=black][COLOR=black]"Money market investors have never seen anything like this," Peter Crane, president of Crane Data LLC told InvestmentNews.com. "It was a near-death experience." [/COLOR][/COLOR]
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[COLOR=black][COLOR=black]Primary Fund got caught up in the aftermath of the Lehman Brothers bankruptcy. It held $785 million in Lehman debt at the time. The fund fell to 97 cents per share and investors rushed to get out, forcing it to close. [/COLOR][/COLOR]
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[COLOR=black][COLOR=black]A few days later, Putnam Funds voted its $12.3 billion Prime Money Market. Its managers said the problem wasn’t short-term debt but a simple run by scared investors that forced its hand. The company later joined the federal program. [/COLOR][/COLOR]
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[COLOR=black][COLOR=black]Ten major money managers immediately signed on to the new Treasury program, reports The New York Times, including Charles Schwab, Federated, Morgan Stanley, Putnam Investments, BlackRock, and JPMorgan Chase. [/COLOR][/COLOR]
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[COLOR=black][COLOR=black]© 2008 Associated Press. All rights reserved.[/COLOR][/COLOR]

benpkwy · 10-14-2008, 01:18 PM

How are you guys doing out there with the market being the way it is right now?

BrokersAllianceAnnuities · 10-14-2008, 01:32 PM

Annuity business is picking up as a result. However, I have collected a few letters from the Presidents of some annuity carriers that detail their investments, which I forward to agents to show clients. I'm sure some agents here have received them.

Building credibility is important - especially these days.

If you would like them, contact the marketing departments of the carriers you use or your FMO.

benpkwy · 10-14-2008, 03:48 PM

I am thinking about signing up thru Safe Harbor Financial. Have you heard of them? I don't want to short change myself! Any suggestion as far as FMO

SmartMoney · 10-14-2008, 04:01 PM

Originally Posted by benpkwy

I am thinking about signing up thru Safe Harbor Financial. Have you heard of them? I don't want to short change myself! Any suggestion as far as FMO

Depends on the Products and IMO... Safe Harbor represents some of the better companys out there, but I have no experience with their service...

benpkwy · 10-14-2008, 04:30 PM

Who do you work with? Who would you recommend?
For Fixed annuity

SmartMoney · 10-15-2008, 09:58 AM

Replied directly to you, I know this board is picky about these types of things...