Romney made the investment in a mutual fund called the Government Obligation Fund, managed by Federated Investors Inc. The fund invests in a wide variety of sources, including government agencies and US Treasury notes. But out of a $28.5 billion portfolio, nearly half of the fund was in Fannie Mae, Freddie Mac, and Federal Home Loan Bank notes, according to an SEC filing made in April.
People and pundits are trying make something out of Romney's investments in Federated's Government Obligation Fund? He "profited"? Here is the big secret that they are conveniently leaving out: the fund is actually a money market fund. Yes, as in $1 per share. As in always $1 per share, plus a bit of dividend income, kind of like interest. That's closer to an interest-bearing savings account than it is some high-flying high risk/return investment. There's your scandal.
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