Chuck Jaffe writes in "Broken bonds: In credit crisis, ultra-short bond funds haven't been ultra-safe", "For more than a year now, however, investors who have parked money in ultra-short duration bond funds have come away feeling like their investment vehicle has been vandalized while their cash was parked." The article continues, "Over the past 12 months, the average ultra-short bond fund is off 1.66%, according to fund-tracker Lipper Inc. So far this year the situation is uglier, with the average fund in the category losing around 2.2% of its value." Our Crane 100 Money Fund Index has returned 4.45% over the past year (through 4/30/08) and 0.97% year-to-date. Jaffe adds, "Indeed, managers of any fund that combines 'yield' and 'plus' in its name must be wondering if they are better off killing a fund than living with a track record that could now be impaired for decades. As such, nervous investors may decide it's time to run to a covered parking spot for their cash, namely a money-market mutual fund."
