Outside Directors of Money Market Mutual Funds Earn $218,000 While Shareholders Earn Close to Zero, According to New White Paper

CHATHAM, N.J., Dec. 5, 2011 /PRNewswire/ -- Fidelity Cash Reserve Money Market mutual fund, is just one example of thousands of money market mutual funds where outside directors who are there to protect the interest of the shareholder are getting full pay while the managers and shareholders earn close to nothing, according to a new white paper released by Daniel M. Perkins, RIA, LLC. If the conflict of interest with the outside directors is not bad enough, several funds have filed with the SEC to add a new risk to money market fund prospectuses. Now money market fund shareholders from Charles Schwab and others are being warned about "Recoupment Risk" from the waived management fees and expenses paid by the management companies for at least 3 years. Who is representing the interest of the shareholder?

The semiannual report of the Fidelity Money Market mutual fund date May 2011 shows the fees the outside directors earn ($218,000). In many cases the fund managers are paying the director fees if the income isn't sufficient to cover the expense. With 43% of fund assets in European Bank CD, the credit risks are significant and the government is ill prepared to bail out the money funds again. Are money market mutual funds the real, "Too big to fail" intuitions?

Daniel M. Perkins, RIA, LLC has released a second "White Paper" on the risks associated with money market mutual funds. This "White Paper" articulates the challenges, serious problems, and conflicts of interests that are inherent in money market funds today.

The "White Paper" entitled Are the Money Market Mutual Funds about to become Fundosaurs (def: money market fund dinosaurs) is available at www.liquidityreserve.com.

Contact information:
Daniel M. Perkins, Chairman
Daniel M. Perkins, RIA, LLC
1066 Sand Castle Rd
Sanibel FL 33957
Phone 973.966.9500 e-mail www.liquidityreserve.com
blog: www.moneyinmot.blogspot.com

SOURCE Daniel M. Perkins, RIA, LLC