Money market funds are adopting a more defensive stance by shortening the average maturity of their portfolios as uncertainty over the U.S. Federal Reserve's interest rate path persists, according to the latest industry data reviewed by Reuters.
The weighted average maturity (WAM) of the Crane Money Fund Average, a broad gauge of the industry, declined to 38 days in the week ended July 10 from 42 days a month earlier. Similarly, the Crane 100 Money Fund Index, which tracks funds managing the majority of industry assets, saw its WAM fall to 40 days in July from 44 days in June.
