The March issue of Crane Data's Money Fund Intelligence was sent out to subscribers on Friday morning. The latest edition of our flagship monthly newsletter features the articles: "Commissioners Push Alternatives in Reform Debate," which reviews recent SEC comments on pending regulations; "Federated Investors Debbie Cunningham," which interviews Federated's CIO for Global Money Markets; and, "Cash Breaks $10 Trillion; Deposits Continue Surging," which reviews the continued growth in bank deposits. We also updated our Money Fund Wisdom database query system with Feb. 28, 2014, performance statistics and rankings last night, and we sent out our MFI XLS spreadsheet earlier. (MFI, MFI XLS and our Crane Index products are available to subscribers at our Content center.) Our February 28 Money Fund Portfolio Holdings data are scheduled to go out on Tuesday, March 11.
The latest MFI newsletter's lead article comments, "After SEC Chair White indicated last month that completing money fund regulatory reforms is a "critical priority for the Commission in the relatively near term of 2014," several other SEC Commissioners have weighed in on the topic in recent speeches. Commissioner Michael Piwowar told the Wall Street Journal that he advocated letting investors choose between a floating NAV and a gates and fees option, while Commissioners Gallagher and Stein blasted and defended the FSOC, respectively. Meanwhile, meetings and lobbying over the pending regulations continues."
As we wrote in our March 4 CraneData.com News , "The Journal commented late last week: As U.S. securities regulators move to finalize long-awaited rules aimed at reducing risks to the $2.7 trillion money-market mutual-fund industry, one official wants investors to have greater choice in the types of funds in which they can invest."
The "profile" with Federated's Cunningham says, "This month MFI interviews Federated Investors' Executive VP & CIO for Global Money Markets Deborah Cunningham. Our Q&A follows. MFI: Tell us about your history. Cunningham: From Federated's perspective, we've been involved in running cash since the beginning of time. We now have the oldest registered money market fund on the books of the SEC, Federated Money Market Management. It has 40+ years of history at this point. We ran cash before we even had funds, so we had risk-averse strategies from the very beginning."
Cunningham's intro continues, "As far as our historical involvement in the money fund industry, we've been involved in every step of the process, from the original exemptive orders that led to amortized cost, to the first go-round of 2a-7, to the '92 amendments, the '96 amendments, the 2010 amendments, etc.... I started at Federated in 1981, and began in our accounting department. I moved in to the Investment Management and began actively involved in the team management process for the money funds in 1986." (Watch for excerpts of this interview later this month, or write us to request the full article.)
The February MFI article on Cash Breaking $10 Trillion explains, "The latest Federal Reserve statistics show that bank deposits, the main competitor of money funds and main beneficiary of the financial crisis, continue to surge, even following last year's expiration of unlimited FDIC insurance. Overall cash, including bank deposits (in banks and thrifts), money fund assets and small time deposits, broke above the $10 trillion level late last year for the first time in history."
Crane Data's March MFI with Feb. 28, 2014 data shows total assets falling by $44.9 billion (after rising by $561 million last month) to $2.574 trillion (1,238 funds, the same number as last month. Our broad Crane Money Fund Average 7-Day Yield and 30-Day Yield remained at a record low 0.01% while our Crane 100 Money Fund Index (the 100 largest taxable funds) yielded 0.02% (7-day and 30-day). On a Gross Yield Basis (before expenses were taken out), funds averaged 0.13% (Crane MFA, down one bps) and 0.16% (Crane 100) on an annualized basis for both the 7-day and 30-day yield averages. (So Charged Expenses averaged 0.12% and 0.14% for the two main taxable averages.) The average WAM and WAL for the Crane MFA and the Crane 100 were 45 and 47 days, respectively, unchanged from last month. (See our Crane Index or craneindexes.xlsx history file for more on our averages.)
Preparations are underway for Crane Data's 6th annual Money Fund Symposium, which will be held June 23-25, 2014 at The Renaissance Boston Waterfront. The Agenda and the brochure are now available via PDF and on the Symposium website (www.moneyfundsymposium.com), and we are now accepting registrations ($750) and hotel reservations. (Brochures were recently e-mailed to past attendees and Crane Data subscribers, but contact us at firstname.lastname@example.org to request the full one.) Last year's Money Fund Symposium in Baltimore attracted over 450 attendees and over 30 sponsors and exhibitors, making it the world's largest annual gathering of money fund and money market professionals. Participants include money fund managers, marketers and servicers, cash investors, money market securities dealers, issuers, and regulators.
After an initial "Welcome to Money Fund Symposium 2014" by Peter Crane, President & Publisher of Crane Data, this year's agenda in Boston will start the afternoon of June 23 with the keynote speech "Money Market Funds - Past & Future" by Fidelity Investment's Nancy Prior. The opening afternoon will also feature: "Strategists Speak '14: Fed Taper, Repos, Regs" with Brian Smedley of Bank of America Merrill Lynch, Joseph Abate of Barclays , and Garret Sloan of Wells Fargo Securities. This will be followed by a panel entitled, "The Growing Role of Online Trading Portals," moderated by Dave Agostine of Cachematrix and including: Greg Fortuna of State Street's Fund Connect, Justin Meadows of MyTreasury, and Jonathan Spirgel of BNY Mellon Liquidity Services. The first day will close with a panel, moderated by Fitch Ratings' Roger Merrritt entitled, "Major Money Fund Issues 2013," featuring Charlie Cardona of BNY Mellon CIS/Dreyfus, Andrew Linton of J.P. Morgan A.M., and Steve Meier of State Street. The opening reception will be sponsored by Bank of America Merrill Lynch.
Day 2 of Money Fund Symposium features: "The State of The Money Market Fund Industry" with Peter Crane of Crane Data, Debbie Cunningham of Federated Investors, and Alex Roever of J.P. Morgan Securities; "Senior Portfolio Manager Perspectives," moderated by Joel Friedman of Standard & Poor's Ratings and including Rich Mejzak of BlackRock, Rob Sabatino of UBS Global Asset Management, and John Tobin of J.P. Morgan Asset Management; "Government MF Issues & Repo Update," with Andrew Hollenhorst of Citi, Marques Mercier of Invesco, and Mike Bird of Wells Fargo Advantage Funds; and "Treasury Dept. on FRNs & Risk Agenda" with U.S. Department of the Treasury's Matt Rutherford.
The afternoon of Day 2 (after a Dreyfus-sponsored lunch) features: "Dealer Panel: Supply Outlook, New Products," moderated by Dave Sylvester of Wells Fargo Funds and featuring Chris Condetta of Barclays, John Kodweis of J.P. Morgan Securities, and Jean-Luc Sinniger of Citi Global Markets; "Accounting Issues, Disclosure & Floating NAVs," with Chris May of PriceWaterhouseCoopers; "Enhanced Cash, ETF & Ultra‐Short Bond Growth," with Alex Roever of J.P. Morgan Securities, Jonathan Carlson of BofA Global Capital Management, and Peter Yi of Northern Trust; and, "European & Global Money Fund Outlook" with Jonathon Curry of HSBC Global Asset Management and Dan Morrissey of William Fry. (The Day 2 reception is sponsored by Barclays.)
The third day of Symposium features: "Money Fund Reforms A Look at the Final Rule," with Stephen Keen of Reed Smith and Jack Murphy of Dechert LLP; "Regulatory Roundtable: Discussing New Rules" with Jane Heinrichs of the Investment Company Institute, Kevin Meagher of Fidelity, and Sarah ten Siethoff of the U.S. Securities & Exchange Commission; and, "Corporate Cash Investor Issues & Alternatives, with Tony Carfang of Treasury Strategies, Lance Pan of Capital Advisors, and Jamie Cortas of EMC Corp. Finally, the last session is entitled, "FDIC, Brokerage & Retail MMF Update," and features Rick Holland of Charles Schwab, Ted Hamilton of Promontory Interfinancial Network, and Tim Schiltz of Ameriprise Financial.
Money Fund Symposium 2014 promises to be "the" place to be for money market professionals -- register and reserve your spot today! Exhibit space for Money Fund Symposium is $3,000; and sponsorship opportunities are $4.5K, $6K, $7.55K, and $10K. Finally, our next "offshore" money fund event, European Money Fund Symposium, is scheduled for Sept. 22-23, 2014 in London, England, and our next Crane's Money Fund University is scheduled for Jan. 22-23, 2015, in Stamford, Conn. We hope to see you in Boston in June!
The February issue of Crane Data's Money Fund Intelligence was sent out to subscribers Friday. The latest edition of our flagship monthly newsletter features the articles: "Final SEC Regs Coming Soon, But Still Unclear If Combo," which predicts that Money Market Fund Reforms may arrive as early as late March; "Capital Advisors Group's Campbell & Pan Talk SMAs," which interviews the founder of and the director of research for a boutique cash and separate account manager; and, "Focus on Treasury: New FRNs & Debt Ceiling Redux," which reviews the Treasuries new floating rate securities and the latest debt ceiling debate. We also updated our Money Fund Wisdom database query system with Jan. 31, 2014, performance statistics and rankings, and sent out our MFI XLS spreadsheet Friday. (MFI, MFI XLS and our Crane Index products are available to subscribers at our Content center.) Our January 31 Money Fund Portfolio Holdings data are scheduled to go out on Tuesday, Feb. 11.
The latest MFI newsletter's lead article comments, "While most money fund professionals expect the SEC's pending final Money Market Fund Reforms to arrive late in the second quarter or even Q3 of this year (most also expect the "combination" of floating NAV and emergency fees with gates), we think recent comments from SEC Chair Mary Jo White may mean it could get here as soon as the end of March. But recent comments from another Commissioner indicate that the choice of possible alternatives has likely not been finalized yet."
As we wrote in our Jan. 28 CraneData.com News and quoted in MFI, SEC Chair White said recently on the pending reforms, "We have received hundreds of letters on the proposals with a wide range of differing views that we are reviewing closely. Completing these reforms with a final rule is a critical priority for the Commission in the relatively near term of 2014."
The "profile" with Capital Advisors says, "This month, MFI interviews Capital Advisors Group's Ben Campbell, President & CEO, and Lance Pan, Director of Investment Research & Strategy. We discuss their business, and issues in the money markets, the separately managed account space, and the area just beyond money market funds. Our Q&A follows."
Our interview asks, "MFI: How long has Capital Advisors been running cash?" Campbell answers, "We started in 1991 as an "outsourced" investment management solution for treasurers. Our focus was then and is now managing separate accounts for institutional cash investors. As we've gone through different credit and investment cycles, we've seen the need for and developed credit and risk management products in response to inquiries from treasurers. We began by providing credit analysis of securities and portfolios, which although separate from our invest management business, drew upon our strong research and portfolio management capabilities." (Watch for excerpts of this interview later this month, or write us to request the full article.)
The February MFI article on Treasury FRNs explains, "The U.S. Treasury was a bigger focus than usual for the money markets this month as the agency launched its new floating rate securities and as another game of chicken over the debt ceiling looms. We don't know yet how much of the new FRN note was purchased by money funds, but we'll have our first glimpse from our Jan. 31 Money Fund Portfolio Holdings [tomorrow and Wednesday]."
Crane Data's February MFI with Jan. 31, 2014 data shows total assets rising by $561 million to $2.619 trillion (1,238 funds, five more than last month). Our broad Crane Money Fund Average 7-Day Yield and 30-Day Yield remained at a record low 0.01% while our Crane 100 Money Fund Index (the 100 largest taxable funds) yielded 0.02% (7-day and 30-day). On a Gross Yield Basis (before expenses were taken out), funds averaged 0.14% (Crane MFA) and 0.16% (Crane 100) on an annualized basis for both the 7-day and 30-day yield averages. (So Charged Expenses averaged 0.13% and 0.14% for the two main taxable averages.) The average WAM and WAL for the Crane MFA and the Crane 100 were 45 and 47 days, respectively, up from 43 and 46 days last month. (See our Crane Index or craneindexes.xlsx history file for more on our averages.)
Finally, on Friday we also released the Agenda and brochure for our main conference event, Crane's Money Fund Symposium, which will take place June 23-25, 2014 <b:>`_ at the Renaissance Boston Waterfront Hotel. Our 6th annual Symposium should again attract the largest audience of money market professionals in the world. (We're estimating almost 500 for our Boston show.) Registrations and sponsorships are now being accepted for our 2014 Symposium. Our second annual "offshore" event, European Money Fund Symposium, is scheduled for Sept. 22-23 in London (watch for this agenda later this month), and our next "basic training" Crane's Money Fund University, will take place Jan. 22-23, 2015, in Stamford, Conn.
On Friday, Crane Data introduced a new "Holdings Reports Issuer Module" for subscribers to our premium Money Fund Wisdom product. The "beta" version of the new "Issuer Module" allows users (you need the "Slicer" and a more recent Excel version) to choose a number of money market securities "Issuers" and to display a report with all the money market mutual funds that hold those names (with amounts). Click on one of the "Issuers" tabs, hold down the "Ctrl" key and click on more Issuers to select multiple holdings. (Note: This is still Dec. 31, 2013, data; our Jan. 31 data will be out on Feb. 10-11.) This file is also now available under our latest "Money Fund Portfolio Holdings" file listings at http://cranedata.com/publications/money-fund-portfolio-holdings/details/2014-1-1/. The Issuer Module file will be available with future updates via the www.cranedata.com "Content" area each month following the publication of our Money Fund Portfolio Holdings "Reports & Pivot Tables" data. The new Issuer Module also includes the full "HoldingsList" tab (the "stacked" file) as well and allows reports by Country, Fund Family, and Fund too. We built this based on a customer request, so please let us know if you'd like a brief demo, or if you have any feedback, questions or requests.
The Financial Times writes, "Floating rate Treasuries register strong demand". The article comments, "Investor demand for the first new US Treasury security in 16 years pulled in orders worth nearly six times the size of the issue on Wednesday, ahead of another debt ceiling showdown in Washington. The Treasury sold $15bn of floating rate notes, whose benchmark rate is based on the three-month Treasury bill yield, and attracted orders of $85bn, a healthy bid-to-cover of 5.67 times. Dealers underwriting the sale bought $7.94bn of the sale, with investors accounting for just under half of the entire issue.... Money market funds, starved by low yields and worried about sharp swings in short-term bills because of the prospect of another Federal debt ceiling battle in March, are expected to seek the new floating rate note that has a maturity of two years. Peter Crane, president of Crane Data, a money market research firm, said: "Treasury money market funds are so starved for yield that anything giving them an extra basis point or two, and with the same quality and liquidity features of a Treasury security, means it's a no brainer for them to own.""
The Preliminary (draft) Agenda for the 2014 Crane's Money Fund Symposium has now been posted on the www.moneyfundsymposium.com website. Crane's Money Fund Symposium 2014, which will take place June 23-25, 2014, at the Boston Renaissance Waterfront, should once again be the largest gathering of money market professionals anywhere. (We attracted over 450 last summer at our event in Baltimore.) Some speakers and invitations are still being confirmed, but we also expect once again to have the most knowledgeable and highest level speakers in the money fund and cash investment business. E-mail Pete to request a copy of the conference brochure, which will be released to subscribers of our Money Fund Intelligence with the February issue. Join us too next week at our latest Crane's Money Fund University, which will take place January 23-24 (Thurs. and Friday) at the Providence Renaissance Hotel. MFU is our smaller "basic training" event held each January for investment professionals new to the money fund space or for those seeking certification in the money market field. Finally, mark your calendars our second European Money Fund Symposium, which is scheduled for Sept. 23-24, 2014, in London. Contact us about speaking and sponsorship opportunities for this or any of our future events.
The New York Times writes "An Advantage Vanishes for Money Funds". It says, "When money market mutual funds were invented back in 1971, they offered something new. Investors could earn higher yields than on bank deposits, with nearly the same liquidity and safety. But that has changed. Currently, a money market deposit at Citibank pays about five times as much interest as an investment in the Fidelity Cash Reserves fund -- though, in today's low-rate environment, the yields are minuscule. The bank's advantage appears to be a trend. In early 2007, money market mutual funds typically paid almost four percentage points more than bank deposit accounts, according to the Investment Company Institute, a trade association. But ever since 2009, bank money market deposit accounts have consistently paid more, on average, than their mutual fund counterparts." They quote our Peter G. Crane, a founder of the money market fund information company Crane Data, "The zero-interest-rate environment has been brutal on money market funds. They have lost their yield advantage." The piece adds, "The difference between 0.05 percent and 0.01 percent may not look like very much. But then again, the appeal of a money market mutual fund in the first place was that you could earn more than you could get from your bank. That helps explain a surge of outflows from money market mutual funds in 2010 and 2011." See also, Gretchen Morgenson's latest anti-Wall Street and anti-fund rant, "Bailout Risk, Far Beyond the Banks".
The January issue of Crane Data's Money Fund Intelligence was sent out to subscribers this morning. The latest edition of our flagship monthly newsletter features the articles: "Reviewing Highlights of '13; More Regs & Rates in '14," which reviews the major stories of 2013 and gives an outlook for the coming year; "Treasury Partners' Klein on Portal, Separate Accounts," which interviews one of the principals of a major online money market trading "portal"; and, "Top MMFs of 2013; Our 5th Annual MFI Awards," which reviews the top-performing money funds of 2013 and of the past 5 and 10 years. We've also updated our Money Fund Wisdom database query system with Dec. 31, 2013, performance statistics and rankings, and will be sending out our MFI XLS spreadsheet shortly. (MFI, MFI XLS and our Crane Index products are available to subscribers at our Content center.) Our December 31 Money Fund Portfolio Holdings data are scheduled to go out on Friday, Jan. 10.
The "profile" with Treasury Partner's Klein says, "This month, we interview Jerry Klein, Managing Director/Partner of Treasury Partners, and discuss the online money market fund trading portal business, as well as recent trends in separately managed accounts and cash investing. Our Q&A follows." (Watch for excerpts of this interview later this month, or write us to request the full article.)
Our article on the MFI Awards explains, "In this issue, we once again recognize some of the top-performing money funds, ranked by total returns, for calendar 2013, as well as the top-ranked funds for the past 5-year and past 10-year periods. We present the following funds with our annual Money Fund Intelligence Awards. On page 7, we show a table with the winners. These include the No. 1-ranked funds based on 1-year, 5-year and 10-year returns, through Dec. 31, 2013, in each of our major fund categories (our "Type") -- Prime Institutional, Government Institutional, Treasury Institutional, Prime Retail, Government Retail, and Treasury Retail."
MFI says, "The top-performing Taxable fund overall in 2013 and top among Prime Institutional funds was BlackRock Cash Inst MMF Inst (BGIXX), which returned 0.15%. (We excluded BlackRock Cash's SL class due to its limited availability.) Among Prime Retail funds, Meeder Money Market Fund Retail (FFMXX) again had the best return in 2013 (0.14%). (It previously was named Flex-fund.) Western Asset Inst Govt MM A (INGXX) won the Top Government Institutional fund over a 1-year period with a return of 0.05%, while Davis Government MMF A (RPGXX) won the MFI Award for Government Retail Money Funds (1-year return). Morgan Stanley Inst Liq Treas Inst (MISXX) ranked No. 1 in the Treasury Institutional class, and Morgan Stanley Inst Liq Treas Cash Mgt (MREXX) ranked tops among Treasury Retail funds."
On the "Top Funds Over Past Five Years, we write, "For the 5-year period through Dec. 31, 2013, Touchstone Inst MMF (TINXX) again took top honors for the best-performing money fund with a return of 0.34%. Meeder Money Market Fund Retail ranked No. 1 among Prime Retail with an annualized return of 0.23%. Western Asset Inst Govt MM A ranked No. 1 among Govt Institutional funds, while Vanguard Federal Money Mkt Fund (VMFXX) and Weitz Government Money Mkt (WGMXX) both ranked No. 1 among Treasury Retail funds over the past 5 years. Vanguard Admiral Treasury MM (VUSXX) ranked No. 1 in 5-year performance among Treasury Inst money funds, and Northern Trust Treasury Money Mkt (NITXX) ranked No. 1 among Treasury Retail funds.
We awarded the "Best Money Funds of the Decade titles to, "The highest-performers of the past 10 years include: DWS Daily Assets Fund Inst (DAFXX), which returned 1.94% (No. 1 overall and first among Prime Inst); Fidelity Select MM Portfolio (FSLXX), which returned 1.78% (the highest among Prime Retail); American Beacon US Govt Select (AAOXX), which returned 1.74%, (No. 1 among Govt Inst funds); and, Vanguard Federal Money Market Fund (VMFXX), which ranked No. 1 among Govt Retail funds (1.67%). Milestone Treasury Obligs Fin (MIL01) returned the most among Treasury Institutional funds over the past 10 years; and, Goldman Sachs FS Trs Obl Sel (GSOXX) ranked No. 1 among Treasury Retail money funds."
MFI adds, "See our additional rankings tables on pages 9-11, and see our Money Fund Intelligence XLS for more detailed listings, percentiles, and rankings. Look for more details in coming days on the website too (www.cranedata.com). Winners will receive a letter and certificate stating their No. 1 ranking and the criteria used."
Finally, we're look forward to seeing some of you at our "basic training" conference event, Crane's Money Fund University, in just over 2 weeks (Jan. 23-24, 2014) in Providence, Rhode Island. Our 4th annual MFU will contain a heavier focus on money fund regulations, and will, as always, cover the basics of money funds, interest rates, and overviews of various money markets. Our next main event, Crane's Money Fund Symposium, will take place June 23-25, 2014, in Boston, and our second annual "offshore" event, European Money Fund Symposium, will take place Sept. 23-24 in London. Registrations and sponsorships are now being accepted for our 2014 Symposium, and the preliminary agenda is being finalized. (Watch for the agenda late this week or next.)
The Wall Street Journal asks "Do Money-Market Funds Still Make Sense?" The piece says, "For the past few years, investors could probably have made more money by picking up loose change from the sidewalk than by investing in a money-market mutual fund. Money funds are likely to regain appeal once interest rates rise again. Historically, when rates start moving upward, money-fund yields quickly follow, unlike those of bank savings accounts, which can lag. But for now, persistently low rates -- coupled with uncertainty about a possible regulatory overhaul for money funds -- are reasons to avoid using the funds for all but very-short-term parking of cash, financial advisers say.... The average yield on taxable money funds for individual investors is just 0.01% a year, according to Crane Data LLC of Westborough, Mass. On an investment of $10,000, that is $1 a year. Such low yields are unlikely to climb soon, as many market professionals think there is still too much economic uncertainty for the Federal Reserve to start raising short-term rates. Moreover, the reason money funds have been able to offer any yield at all in recent years is that management companies have been waiving billions of dollars in fees.... With the exception of the Reserve Primary Fund, money-market funds came through the financial crisis and other turmoil, including the European debt crisis and the U.S. federal-government shutdown, unscathed. But still the Securities and Exchange Commission is considering new regulations to avoid future runs on funds." The article quotes, Peter Crane, president of Crane Data, "A floating NAV would really harm one of the core features of money-market funds. Investors want the ability to transact and not have to worry about gains and losses, or not having the amount that you thought you had." The Journal adds, "The timing of any SEC action is uncertain."
The December issue of Crane Data's Money Fund Intelligence was sent out to subscribers on Friday morning. The latest edition of our flagship monthly newsletter features the articles: "Money Fund Assets Retake $2.7 Trillion; Flat Again in '13," which reviews the growth of money fund assets over recent months and cycles of 2012 and 2013; "Northern Rethinks Cash: Interview with Peter Yi," which discusses money markets and enhanced cash with the Chicago manager; and, "MMF MNAVs Not Floating," which reviews the disclosure of market net asset values since the beginning of 2013. We've also updated our Money Fund Wisdom database query system with Nov. 30, 2013, performance statistics and rankings, and will be sending out our MFI XLS shortly. (MFI, MFI XLS and our Crane Index products are available to subscribers at our Content center.) Our November 30 Money Fund Portfolio Holdings are scheduled to go out on Tuesday, Dec. 10.
Our MF Assets piece says, "Money market mutual fund assets were basically flat for the second year in a row in 2013. But the miniscule gains masked a huge decline then comeback this year, a pattern similar to what we saw in 2012. Money fund assets rose by $24 billion in the latest week, according to ICI's numbers, and retook the $2.7 trillion level for the first time since the first week of 2013."
The December issue's lead story continues, "Assets have only peaked above $2.7 trillion for the first couple of weeks in January in both 2013 and in 2012. They had first broken above this level in the summer of 2007 and remained above it until mid-2011. (See the annual asset level chart on page 2, and assets over the past 2 years below.)"
Our "profile" with Northern's Peter Yi says, "This month Money Fund Intelligence interviews Peter Yi, Senior Vice President and Director of Money Markets at Northern Trust. Northern is the 11th largest manager of money funds in the U.S., but its footprint in the cash marketplace is even larger given its management of securities lending reinvestment and other cash pools. Our Q&A follows."
We write: "MFI: How long has Northern been involved in running money funds?. Yi: Northern Trust has been managing money market funds since the 1970's when Northern created its first cash sweep vehicle in our trust department. We have been doing this for a long time and continue to be very committed to the money market business. We are now managing about $225 billion in AUM across various money market and short duration products and strategies.."
The article on MMF MNAVs explains, "Two of the major stories of 2013 included the SEC's money market fund reform proposal, which contained a floating NAV option for prime institutional money funds, and the voluntary disclosure of daily market NAVs by a number of institutional money fund managers. Given that we now have almost a year of history of these daily MNAVs, and a 2-year history of the monthly "shadow" NAVs, we decided to look at whether money funds do indeed actually float. Given the minimal fluctuation in these values to date, it's pretty clear that the answer is "No."
Finally, we're making preparations for our "basic training" conference event, Crane's Money Fund University, which will be held Jan. 23-24, 2014 in Providence, Rhode Island. Our 4th annual MFU will contain a heavier focus on money fund regulations, and will, as always, cover the basics of money funds, interest rates, and overviews of various money markets. Our next main event, Crane's Money Fund Symposium, will take place June 23-25, 2014, in Boston, and our second annual "offshore" event, European Money Fund Symposium, will take place Sept. 23-24 in London. Registrations and sponsorships are now being accepted for our 2014 Symposium, and the preliminary agenda is being finalized. (Watch for the agenda later this month.)Archives »