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CNBC Gets It Wrong Again: Columbia Strategic Cash Not a "Money Fund". For the fourth time since August, CNBC has incorrectly labelled an "enhanced cash" bond portfolio a "money market fund". This time, CNBC and now WSJ erroneously refer to Columbia Strategic Cash Portfolio, a "3c-7" enhanced cash fund open only to qualifed institutional investors, as a "money market fund". It is not. It is neither "money market" nor "mutual fund". (See our Saturday story, "More on Enhanced Cash: Columbia StratCash Halts Redemptions".) The private pool, which has reopened trading at $0.994 cents and is allowing large investors "redemption in kind" into separately managed accounts, has an investment mandate that goes beyond money market funds. The fund has not "broken the buck" but has always had a variable NAV (though it hadn't deviated from $1.00 until now). Bank of America spokesman Jon Goldstein tells us, "Columbia has taken a series of actions to mitigate the impact, including financial support" and is offering investors "a range of credit and investment solutions to provide liquidity." Remaining in the fund is an option, but the pool is expected to "liquidate in an orderly fashion". Columbia's money market funds are not impacted by this and continue to operate normally, offering daily liquidity, competitive yields and high quality short-term investments. See also, Bloomberg "Bank of America to Wind Down $12 Billion Cash Fund".
