Google Looking For A Mutual-Fund Exemption

Google has asked the Securities and Exchange Commission to exempt it from SEC rules that control mutual funds, as the search-engine giant tries to transfer more of its billions in cash and securities from low-yielding U.S. government bonds to investment-grade debt, Bloomberg News reports. Google would fall into the mutual fund category, as at least 40% of its assets are in securities. The switch could result in a 1% increase on returns in its investments, which translates into $100 million of additional income. The request is similar to one made by software giant Microsoft, which saw an average return of around 5% last year on a combination of common stocks and debt. Google, which earned 4% on its investment before taxes in 2005, says the extra income is needed to better compete with its rivals.