Jan 09

 

Later this morning, Crane Data'​s January Money Fund Intelligence newsletter will be e-​mailed to subscribers. The new edition contains articles entitled: "Outlook Bleak for 2012, But MMFs See Glimmers," which reviews recent asset and regulatory trends; "Interview w/​Schwab MF Strategist Rick Holland," which quotes industry veteran Rick Holland; "Top MMFs of 2011; Our 3rd Annual MFI Awards," which announces the top-​performing funds for 2011; and "Treasury Partners Enters Portal Transparency War;" which reviews the latest analytical tool offered to portal investors. We have also updated our Money Fund Wisdom database with December 31, 2011, performance information and are in the process of sending out our monthly Money Fund Intelligence XLS and Crane Index products.

The latest MFI says, "The coming year looks bleak for money market mutual funds, but things are not nearly as challenging as they appeared to be just one month ago. Sure, zero yields and the threat of radical regulatory change are even more threatening than they'​ve been the previous three years. But glimmers of hope and relief appeared on both fronts late in the year, and money fund investors and providers have reason for optimism in 2012."

In our regular fund family article, we write, "Money Fund Intelligence'​s latest monthly fund family "​profile" features Charles Schwab Investment Management'​s Rick Holland, Schwab'​s new portfolio strategist for money market funds. We discuss Schwab'​s history with money funds, current portfolio tactics, recent customer concerns, and the outlook for the money market mutual fund business in general. Our Q&​A follows." Look for these product shortly, or watch www.​cranedata.​com for more excerpts in coming weeks.

In other news, Sunday'​s New York Times featured the article, "​Money Funds Could Face More Changes". It discusses Norwegian lender Eksportfinans and potential pending regulatory changes. The piece says, "About 20 American money market mutual funds -- those trusted staples of institutional and individual cash management -- were caught holding notes issued by the bank, Eksportfinans of Norway. The downgrade put the notes well below the quality threshold set by fund regulators."

The Times explains, "​What happened next? The answer depends on whether you'​re talking to mutual fund executives or to their regulators -- and the gap between the answers explains the regulatory fight that the $​2.​6 trillion money fund industry faces in 2012. Ask a mutual fund industry executive and you'​ll hear that the affected funds were quietly bailed out by their sponsors. In fact, fund industry executives say the Eksportfinans episode simply proved that the money fund industry is much safer and resilient because of the reforms put in place after 2008, when the Lehman Brothers bankruptcy set off a panic. But ask a federal regulator about the Eksportfinans event and you'​ll hear that the financial system dodged a bullet that could have started another ruinous stampede. As regulators see it, the episode is a worrisome reminder that, despite the new rules already in place, money funds still pose too big a risk to the nation'​s financial stability."

It adds, "​The commission is expected to propose steps early in the year that would change the kind of money funds available to individual and institutional investors, and comments are already being filed from all sides. But industry executives and analysts contend that there doesn'​t seem to be a strong empirical link between the risks the regulators are trying to address and some of the changes they want to make.... Ms. Schapiro has confirmed that some combination of these ideas is likely to be proposed in the first three months of this year, but the fight over what is eventually adopted will be long and loud. Regulators seem to be betting that money funds are so strategically important to big mutual fund families that even the sweeping changes on the drawing board will not kill the funds."

Dec 22

 

While Crane Data is busy preparing for its second annual Money Fund University, a "​basic training" conference for money market professionals January 19-​20 at the Boston Hyatt, we'​re also busy preparing for our 4th annual Crane'​s Money Fund Symposium. Mark your calendars for our 2012 Money Fund Symposium, which will be June 20-​22, 2012, at The Westin Convention Center Pittsburgh. Our Symposium in Philadelphia last summer attracted almost 400 speakers, sponsors, and attendees, and we expect our 4th annual money fund conference to be even bigger and better. Our 2012 keynote speakers include: Chris Donahue, CEO & Chairman of Federated Investors and Karen Dunn Kelley, CEO of Invesco Worldwide Fixed Income. (See the full preliminary agenda here.) Crane'​s Money Fund Symposium offers money market portfolio managers, investors, issuers, and service providers a concentrated and affordable educational experience, as well as an excellent and informal networking venue. Registration for Crane'​s Money Fund Symposium 2012 will (​again) be $​750; exhibit space is $​3,​000; and sponsorship opportunities are $​4.​5K, $​6K, $​7.​5K, and $​10K. Our mission continues to be to deliver a better and less expensive conference alternative to money market fund professionals and investors. We look forward to seeing you in Pittsburgh!

Dec 12

 

In just over a month, we will host our second annual Crane'​s Money Fund University at The Hyatt Regency Boston, Jan. 19-​20, 2012. Money Fund University was designed to offer attendees an affordable and comprehensive two day, "​basic training" course on money market mutual funds, educating attendees on the history of money funds, interest rates, Rule 2a-​7, ratings, rankings, money market instruments such as commercial paper and repo, and portfolio construction and credit analysis. With our Boston, we will expand the focus on regulations, adding a second session on recent Money Market Fund Reforms. Please note that this Friday (​12/​16) is the last day that our discounted hotel rate is available.

Day One of the 2012 MFU agenda includes: Welcome to Money Fund University, History & Current State of Money Market Mutual Funds with Peter Crane, President & Publisher, Crane Data and Sean Collins, Sr. Economist, Investment Company Institute; Interest Rate Basics & Money Fund Math with Brian Smedley, U.​S. Rates, Bank of America Merrill Lynch; The Federal Reserve & Money Markets with Joseph Abate, Director F-​I Strategy, Barclays Capital and Michael Cloherty, Head of Rates Strategy, RBC Capital Markets; Money Fund Regulations: 2a-​7 Basics & History with John Hunt, Partner, McLaughlin & Hunt LLP and Joan Swirsky, Of Counsel, Stradley Ronan; Regulations II: Interpretations & Recent Changes with Stephen Keen, Partner, Reed Smith and Joan Swirsky; and, Operations: Fund Admin & The Board'​s Role with Brian Curran, Vice President, BNY Mellon and Susan Wyderko, Exec. Director, Mutual Fund Directors Forum.

Day Two'​s agenda includes: Instruments of the Money Markets Intro with Alex Roever, Managing Director, J.​P. Morgan Securities; Instruments: Repurchase Agreements with Ellie Boldenow, Executive Director, J.​P. Morgan Securities; Instruments: Treasuries & Govt Agencies with Sue Hill, Senior Portfolio Manager, Federated Investors and Sal Ursida, Partner, G.​X. Clarke & Co.; Instruments: Commercial Paper & ABCP with Rob Crowe and Jean-​Luc Sinniger of Citi Global Markets; Instruments: CDs, TDs & Bank Debt with Garret Sloan, F-​I Strategist, Wells Fargo Securities and Dave Lummis, President, J.​M. Lummis & Co.; Instruments of the Money Markets: Tax-​Exempt Securities, VRDNs, TOBs & Muni Bonds with James Randazzo, Senior PM, Wells Capital Management and Ben Schuler, Structured Muni Analyst, Fidelity Investments; Portfolio Management Strategies & Basics with Jeff St. Peters, Portfolio Manager, SSgA and Michael Markowitz, MD & Head STFI, Guggenheim Partners; Credit Analysis & Approved Lists with Bob Piepenburg, Director/​Credit Analyst, BofA Global Capital and Jacob Weinstein, Sr. Portfolio Analyst, Fidelity; and, Ratings, Monitoring & Risk with Joel Friedman, Senior Director, Standard & Poor'​s Viktoria Baklanova, Senior Director, Fitch Ratings and Crane Data'​s Peter Crane.

New portfolio managers, analysts, investors, issuers, service providers, and anyone interested in expanding their knowledge of "​cash" investing should benefit from our comprehensive program. Even experienced professionals should enjoy a refresher course and the opportunity to interact with peers in an informal setting. Attendee registration for Crane'​s Money Fund University is $​500. Exhibit space is $​2,​000 and sponsorship opportunities are $​3K, $​4.​5K, and $​5K. A small block of rooms have been reserved at the Hyatt Regency Boston. The conference negotiated rate of $​189 plus tax (​14.​45% currently) is available through December, 16th.

We'​d like to thank our current sponsors -- Fitch Ratings, G.​X. Clarke & Co., Fidelity Investments, Invesco, Investortools, and Standard & Poor'​s -- for their support, and we look forward to seeing you in Boston next month. E-​mail Pete for the latest brochure or visit http://​www.​moneyfunduniversity.​com to register or for more details.

Crane Data has also published the preliminary agenda and is accepting registrations for its largest Money Fund Symposium conference, which will be held June 20-​22, 2012, at the Westin in Pittsburgh, Pa.. (​See http://​www.​moneyfundsymposium.​com for details.) Finally, we also plan on joining forces with German conference producer IQPC to support the launch of European Money Fund Summit, an event focusing on money fund regulations, trends and standards in Europe tentatively scheduled for Nov. 14-​16, 2012, in Frankfurt, Germany. Watch for more details in coming months.

Nov 07

 

The November issue of Crane Data'​s Money Fund Intelligence newsletter was sent to subscribers on Saturday along with our October 31 performance data, rankings and indexes. (​Our 10/​31 Money Fund Portfolio Holdings will be published on Nov. 14.) The latest publication includes the articles, "Banks, Bonds Continue Drawing Cash From MFs," which discusses the outflows from money funds and big inflows into bank savings and bond funds; "State Street'​s Fortuna on Fund Connect Portal," our monthly fund "​profile" which again features one of the large online money market trading "​portals"; and, "Fund CEOs on Regulations Say Squam Out, Buffer In," which reviews recent comments on possible regulatory changes for money funds. (​Note that we published over the weekend because several of our staff will be at the Association for Financial Professionals Annual Conference in Boston Sunday, Nov. 6 through Wed., Nov. 9. Look for us at Booth #​1805 and see Pete Crane present on "Under The Cash Hood: Looking Beyond Yield at Money Market Mutual Fund Holdings" Monday at 4pm.)

Our lead article says, "Money market mutual fund assets were down moderately (-$​18.​7 billion) in October, though assets remain above $​2.​6 trillion -- the same level they rebounded to the week following the resolution of the debt ceiling crisis (​8/​10). But competitors on both sides -- banks and bonds -- continue to attract assets at a strong pace." Two charts in MFI show asset changes year-​to-​date (​through 9/​30/​11) in money funds, bank money market deposit accounts (​MMDAs), and bond funds; and a longer term view of asset changes in money funds vs. bank MMDAs."

The November issue also comments, "​This month we feature another online money market trading "​portal" in our "​profile" interview. Money Fund Intelligence interviews Greg Fortuna, Managing Director at State Street Global Markets, and Peter McHugh, Vice President for the company’​s Fund Connect platform in Europe. Fund Connect is announcing the rollout of its Transparency Connect analytics module at this week'​s Association for Financial Professionals' (​AFP) annual conference. Our Q&​A follows."

Finally, we write, "While there'​s no official word on the next round of money fund regulations, a couple of fund industry heavyweights weighed in recently on the topic. On recent quarterly earnings call, both BlackRock and Federated'​s management made comments regarding possible future regulatory changes. We reprint and excerpt them here."

Our monthly Money Fund Intelligence XLS, which contains a host of performance statistics on money funds, rankings and our Crane Indexes, has already been uploaded to the website and e-​mailed to clients, and our Money Fund Wisdom database has been updated with October 31, 2011 data. Watch for more excerpts from our latest MFI in coming weeks, or e-​mail info@​cranedata.​us to request the latest issue.