NEW YORK — Money market funds, an increasingly popular place to park cash, will need to raise fees or close to new money to remain profitable as yields hover at near-zero, according to industry managers. The funds, which manage $3,800bn and have seen big cash inflows, are reeling from frozen credit markets, subprime exposure and a crisis of confidence triggered by one fund ‘breaking the buck,’ or returning investors less than they paid in. The US Federal Reserve last week cut its target interest rate to between zero and 0.25 per cent, from one per cent. Jim McDonald, who runs taxable money market funds for T Rowe Price, said: ‘You can’t make money in this situation. If short-term interest rates stay where they are, it’s virtually impossible to run a government [bond] fund and make any money. You can close the fund, that’s one option.’ Vanguard last week closed two of its money market funds to institutional investors, while Credit Suisse said it would quit managing money market funds in the US and liquidate $8bn in assets across its three funds. David Glocke, a portfolio manager at Vanguard, said: ‘It just doesn’t make any sense […]