American Airlines Money Fund Offers Frequent-Flier Bonus Miles
Investors who may be down in the dumps about low interest rates can get a pick-me-up from American Airlines.
AMR Investment Services, an affiliate of the airline, is opening a money market mutual fund to individual investors and is offering frequent-flier points as an incentive.
People who put at least $10,000 in the American AAdvantage Money Market Fund, which had ben available only to institutional investors, will get special "mileage class" shares.
One Mile per $10
AAdvantage program miles will be posted each month at an annual rate of one mile for each $10 of average daily balance in the fund.
In announcing the plan Tuesday, AMR said its fund has been rated a top performer since its inception in September 1987 by IBC/Donoghue's Monthly Money Fund Report.
The AMR Corp. units are following other nonfinancial corporations down the money fund route. IBM Credit Corp., for example, offers a money fund to supplement its commercial paper activities.
"Individuals can enjoy the same caliber of investment skill and management as large investors," said William F. Quinn, president of AMR Investment Services.