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A press release entitled, "ICD and PIMCO Announce Strategic Product Distribution Partnership," reads, "ICD, the world's largest independent SaaS portal for institutional trading and investment risk management and PIMCO, a leading global investment management firm, have entered into an agreement for distribution of PIMCO Short Asset Investment Fund (PAMSX) and Government Money Market Fund (PGFXX) on ICD PORTAL, increasing product options and diversification alternatives for ICD clients' short-term liquidity portfolio strategies. Jeffrey Jellison, ICD CEO North America said, "We are excited to offer the PIMCO Government Money Market Fund and Short Asset Investment Fund on ICD PORTAL. PIMCO's macroeconomic outlook, extensive global resources and expertise in managing short-duration fixed income portfolios are recognized and highly respected by investors worldwide. PIMCO's products are excellent additions to our liquidity line up." The Government Money Market Fund is PIMCO's most conservative cash/liquidity vehicle. The fund offers among the highest 30-day and 7-Day yields in the Institutional Government MMF category. PIMCO's Short Asset Investment Fund focus is delivering returns in excess of money market strategies with an explicit emphasis on capital preservation. PIMCO's global liquidity platform offers both the benefits of large scale and market access. "PIMCO has the expertise for delivering low volatility while seeking higher returns over money market funds," said Jerome Schneider, PIMCO Managing Director, Head of Short-Term Funds and 2015 US Morningstar Fixed-Income Manager of the Year said. The ICD/PIMCO product distribution agreement continues the steady product expansion on ICD PORTAL as regulatory reform nears finalization in October 2016." Jellison adds, "2016 has ushered in a new era of investment and risk management. PIMCO's focus on preserving and enhancing investor assets with innovative institutional funds will be a welcomed addition by our global clients." Note: PIMCO Govt MMF currently holds $207 million while PIMCO Short Asset Inv Fund Inst holds $425 million in assets.

JP Morgan Securities published a comment late last week entitled, "Fed Funds: New and Improved?" on a new formula for calculating the Fed funds rate. It says, "Next month the Federal Reserve will alter the way it calculates the Fed funds effective rate (FFE). The new methodology captures a wider variety of overnight interbank transactions, and should result in a more robust benchmark. However, the Fed expects the resulting rate should be similar to the classic Fed funds formulation. As part of the roll-out, the Fed will release more information about the Fed funds market than current practice. It will publish statistics summarizing the distribution of volumes each day, including the total dollar amount of transactions used to calculate the rate. However, even with this new information, the market will remain opaque in some ways.... In order to get a better understanding of market participants, we took an in-depth look at quarterly bank call reports filed by US banks and foreign banks in the US. In these reports, each bank is required to disclose the amount of Fed funds sold and purchased, as of the end of each measurement period." It continues, "In aggregate, we estimate that as of 3Q15 (the most recent data available) the size of the Fed funds market was around $52bn, which is about 40% smaller than it was at year-end 2012. We suspect that, like the repo markets, changes in regulation have created an incentive for some banks to reduce participation in Fed funds at quarter-ends, and as a result, intra-quarter balances are likely somewhat higher than what is reflected in call reports. Foreign banking organizations (FBOs) in the US are the predominate borrowers of Fed funds. As of 3Q15, we estimate that FBOs represented about 52% (or $27bn) of all Fed funds purchased. Large and small US banks comprised 23% ($12bn) and 26% ($13bn) respectively. A closer look into the domiciles of FBOs reveals that the most consistent and largest borrowers of Fed funds have been non Japanese Asian banks. This is followed by German banks, Canadian banks, Japanese banks, and French banks. Fed funds purchased volumes are concentrated among a small subset of banks.... While Fed normalization hasn't significantly altered the dynamics of trading in the Fed funds market, there are some notable changes in the near future that may. However, we believe new US regulations that target large foreign banks should have only limited impact on FFE."

Bloomberg writes, "BOJ Roils $14.1 Billion Money Market Industry as Nomura Suspends." The article says, "Nomura Asset Management Co. stopped accepting investments into some money-market funds, joining 10 other managers in suspending such accounts as the $14.1 billion industry grapples with the negative interest rates introduced by the Bank of Japan last week. The brokerage said Friday it will suspend orders for its Money Management Fund and Free Financial Fund from Feb. 9 following the BOJ decision to set the rate on some excess reserves held by financial institutions at the central bank at minus 0.1 percent. Ten firms including Daiwa Asset Management Co., Mitsubishi UFJ Financial Group Inc., Mizuho Asset Management Co. and Resona Bank Ltd. have made similar announcements. The BOJ joined monetary authorities around Europe on Jan. 29 in betting setting rates below zero will reduce borrowing costs for companies and households, drive demand for loans and encourage investment in higher-yielding assets. Yields on Japanese government bonds with maturities as long as eight years have turned negative, while the level for the benchmark 10-year security dropped to a record 0.035 percent on Friday in Tokyo. The Ministry of Finance this week scrapped a sale of 10-year fixed-rate notes aimed at individual investors. "Money that would have been invested in MMFs would probably flow into deposits," said Yusuke Ikawa, a Tokyo-based strategist at UBS Group AG. "Banks who receive that money in deposit accounts will probably invest it into longer-term bonds such as 10- and 20-year notes that offer positive interest rates. That means it won't be long before we see negative yields on 10-year government securities." Bloomberg adds, "Assets held by money-market funds dropped to a record 1.643 trillion yen ($14.1 billion) in December, down 4.3 percent from November, according to data from the Investment Trusts Association of Japan. The Nomura Money Management Fund has 474.5 billion yen in assets and Free Financial Fund holds 560 billion yen, figures on Nomura's website show. "Although the negative rate is applicable only to a part of current accounts that financial institutions hold at the Bank of Japan, yields are falling in the domestic short-term market, which is the main investment of the funds," Nomura said in a statement. Daiwa's suspended orders for three funds Monday, with MUFG halting applications for a total of five funds from the following day." At the end of Q3'15, Japan was the 17th largest money fund market worldwide with $15.8 billion, according to data compiled by the ICI and analyzed by Crane Data, putting it behind Canada and ahead of Chile, Germany, and the U.K. Note that Japan's current $14.1 billion in money market funds is tiny on a global scale -- 55 money funds in the U.S. are larger than Japan's entire industry.

ICI's latest "Money Market Fund Assets" report shows money fund assets down slightly in the latest week. The release says, "Total money market fund assets decreased by $4.18 billion to $2.75 trillion for the week ended Wednesday, February 3, the Investment Company Institute reported today. Among taxable money market funds, government funds decreased by $7.11 billion and prime funds increased by $2.67 billion. Tax-exempt money market funds increased by $260 million." It explains, "Assets of retail money market funds decreased by $870 million to $1.02 trillion. Among retail funds, government money market fund assets increased by $390 million to $367.66 billion, prime money market fund assets decreased by $1.12 billion to $468.44 billion, and tax-exempt fund assets decreased by $140 million to $181.99 billion. Assets of institutional money market funds decreased by $3.31 billion to $1.73 trillion. Among institutional funds, government money market fund assets decreased by $7.50 billion to $865.65 billion, prime money market fund assets increased by $3.79 billion to $801.58 billion, and tax-exempt fund assets increased by $400 million to $66.77 billion." Year-to-date through Feb 3, MMF assets are down $7 billion. In other news, the Cato Institute posted a blog entry entitled, "Can Money-Market Mutual Funds Reliably Avoid the Problem of Runs?" Author Lawrence White concludes, "In summary, we learned in August 2008 that MMMFs using certain accounting rules are not run-proof For 24 hours The Reserve Primary Fund carried a diminished asset portfolio without either topping it up or diminishing the claims against it, and consequently was rationally run upon. We did not learn that MMMFs are inherently fragile, but rather that run-proneness depends on the accounting practices that a fund uses. From this diagnosis, no policy intervention is indicated. What follows is rather that in a market where losses remain private, investors can be expected to consider the relative fragility under certain circumstance of funds that opt to use potentially run-incentivizing accounting practices. Such funds, if they do not offer some fully compensating advantage, should be expected to lose their market share. Money-market mutual funds that instead credibly bind themselves to thoroughgoing mark-to-market accounting and other run-proofing practices (such as perhaps a pre-funded commitment by the parent company to shelter shareholders from losses), and advertise that fact, should be expected to flourish in the marketplace. Such MMMFs remain an available payment mechanism that is not susceptible to runs and therefore has no need for guarantees at taxpayer expense."

Brown Brothers Harriman published a new report as part of its "2016 Regulatory Field Guide," entitled "Liquidity Management: Get Fluid." Author Pranay Sammera writes, "Almost eight years after the Reserve Primary Fund infamously "broke the buck"; the dust is beginning to settle around a new institutional liquidity landscape. It is clear that this new landscape is significantly different than the one we have known and requires purposeful navigation. The effects of the rules enacted following the financial crisis are now taking shape. New US money market fund rules go live this autumn. Basel 3 is a reality and, after almost a decade, the Fed in the US has raised interest rates. The institutional liquidity management landscape is filled with an array of choices and access points. Cash professionals are re-emerging from a hiatus with new perspectives and tools -- in addition to their old scars -- to lead the way. Short-term investment products such as money market funds, repurchase agreements, and other traditional outlets for liquidity management have been scrutinized by regulators. In addition, product offerings are being re-examined by manufacturers for long-term strategic viability. Bank of America, for example, sold its money market fund business to BlackRock in November 2015. At banks, non-operating deposits have become anathema as they are subject to the most severe run-off assumption of 100% when calculating relevant leverage ratios. The upside in 2016 is that there is far more clarity for cash investors around the impact from changes, and paths through the new landscape are becoming clearer." The piece adds, "The prime institutional money fund space represents $875 billion of the $2.7 trillion money fund market in the US. Approximately 40 to 60% of prime institutional money fund assets are expected to move into other products this year. In preparation for the new US money fund regulation many fund manufacturers have segregated institutional investors from retail and in some cases, have morphed their prime funds into government funds, allowing them to retain a steady $1 per share net asset value (NAV). Institutional cash professionals opting to stick with government funds therefore face a trade-off: sacrifice yield, in exchange for the convenience, ease, and comfort of sticking with established models and practices based on the $1 constant NAV principle." Sammera concludes, "The post-crisis period has been a period of upheaval. As interest rates tick higher, there will be a greater opportunity cost inherent in idle, un-invested cash. In this new landscape, there is the opportunity for cash professionals to take a leadership role in defining the optimal model. As cash takes its rightful place among actively managed asset classes, the challenges are real but the reward and opportunities are great." In other news, Federated Investors CIO Debbie Cunningham released her latest "Month in Cash commentary, "Can't Blame the Fed This Time." She writes, "In December, the Federal Reserve took its customary two days to deliberate before releasing its decision to lift rates off near zero for the first time in seven years. But for the market, the verdict is still out. With the recent volatility, some are questioning if the hike was the correct move. We think it was and that the market turbulence has more to do with significant overseas economic issues and oil prices than a small, 25 basis-point increase in rates."

We learned through mutual fund publication Fund Action that Putnam Investments has decided to liquidate its $39 million Putnam Tax-Exempt Money Market Fund. The SEC filing says, "At a meeting held on January 29, 2016, the Board of Trustees of Putnam Tax Exempt Money Market Fund approved a plan to liquidate the Fund upon recommendation by Putnam Investment Management, LLC, the Fund's investment adviser. The liquidation of the Fund is expected to occur on or about March 23, 2016. Effective as of February 12, 2016, the Fund will be closed to new purchases, other than the reinvestment of dividends, in anticipation of the liquidation. Shareholders can redeem their shares from the Fund at any time on or before the close of business on March 23, 2016 at the then-current net asset value. On the Liquidation Date, the Fund will liquidate its remaining assets and distribute cash pro rata to all remaining shareholders as of the Record Date, after the payment of (or provision for) all charges, taxes, expenses and liabilities, whether due or accrued or anticipated of the Fund, who have not previously redeemed all of their shares or exchanged their Fund shares of another Putnam fund." Also, two share classes of Milestone Treasury Obligations Fund will be merged into the fund's Institutional share class, according to a separate SEC filing. It explains, "On October 15, 2015, the Board of Trustees of AdvisorOne Funds approved the conversion of all outstanding Premium Class and Financial Class Shares of the Milestone Treasury Obligations Fund to Institutional Class shares of the Fund on December 1, 2015. On the Conversion Date, each holder of Premium Class or Financial Class shares will receive a number of Institutional Class shares equal in value to the Premium Class or Financial Class shares owned by that shareholder, and all outstanding Premium Institutional Class and Financial Class shares will be canceled. Premium Class or Financial Class shareholders who become Institutional Class shareholders as a result of the Conversion will maintain their investment in the Fund. Premium Class shareholders' shareholder servicing fees will decrease from a maximum of 0.25% to a maximum of 0.10% as a result of the Conversion. Financial Class shareholders’ shareholder servicing fees will increase from a maximum of 0.05% to a maximum of 0.10% as a result of the Conversion." Finally, in other news, the Federal Reserve Bank of New York updated its "Reverse Repo Counterparties List" to include HSBC Prime Money Market Fund and HSBC US Government Money Market Fund managed by HSBC Global Asset Management. The additions are added to the list of reverse repo counterparties, effective February 2.

State Street Global Advisors released white paper last week entitled, "2016 Cash Outlook, A Playbook for the New Cash World." The piece says, "2016 will be a watershed year for cash management. New rules and market developments continue to dramatically reshape the short-end market. SSGA is urging investors to consider reviewing their cash allocations and adapting to the new realities as soon as possible -- well before the implementation deadlines.... These developments -- coupled with Fed tightening and yield spreads that are poised to expand -- mean cash management decisions are more important than ever in determining priorities for liquidity vs. yield.... Given the seismic shifts in so many stalwart cash strategies -- money market funds, repos, commercial paper and even wholesale bank deposits — playing by the old rules is no longer the best option." SSGA's paper continues, "By October 14, 2016, every institutional prime and institutional municipal MMF will be valued at a floating (or variable) NAV, rather than the fixed $1 per share that they have long used.... Because this change doesn't apply to government MMFs, many investors -- accustomed to the convenience and security of the fixed NAV -- are expected to move cash into government MMFs. If this happens, yield spreads are likely to expand. In SSGA's view, there are compelling reasons to look beyond government funds, particularly for cash not needed for near-term operations. State Street funds that will still feature a fixed NAV include the Institutional US Treasury Fund (TRIXX), US Treasury Fund (SVTXX), and Institutional US Government Fund (GVMXX). In addition to the government MMFs, State Street is offering new money fund options [sic] that don't conform with Rule 2a-7, and therefore are not subject to redemption gates and liquidity fees. These include the Current Yield Fund (SSYDX), Conservative Income Fund (SSKGX) and Ultra Short Term Bond Fund (SSTUX)." Furthermore, the paper says, "These changes will drive many investors out of institutional prime and muni funds and into government funds. This flood of cash will position government funds to satisfy two of the criteria for optimal cash management -- security and liquidity -- but will likely drive yields down, particularly while interest rates remain low and the shortage persists in securities underlying government MMFs. On the flipside, as funds flow out of the floating NAV prime funds, yield spreads are poised to increase, rewarding investors able to accept marginally higher risk." It continues, "SSGA has long urged clients to partition cash amongst operational, core and strategic segments, and optimize each with investments featuring an appropriate balance of liquidity, security and yield. Under the new cash rules, this is more imperative than ever, particularly with new rules that will impose a variable NAV on institutional prime strategies and the potential for gates and fees on all prime MMF strategies. Moreover, spread gaps between Treasury bills and prime money market funds could rise to as much as 20 to 50 bps. For most investors, the days when a single investment fit all of your needs are coming to an end." The paper concludes by detailing the funds that might fall into the three buckets" Operational funds include Treasury and Government funds, as well as SSGA's new 60-day maximum maturity fund; Core funds would include SSGAs prime funds and the new Current Yield fund; and, Strategic funds include the new Ultra-Short Bond and Conservative Income funds, as well as SMAs.

Fidelity Investments released a new white paper entitled, "Money Markets 2016 Outlook After Notable 2015." Co-authors Michael Morin and Kerry Pope write, "Investors had to wait until the very end of 2015 to see the Federal Reserve introduce its first interest rate increase in nine years.... The Fed's latest economic projections suggest there will be four additional rate hikes in 2016, consistent with the message in the December statement that this tightening cycle will be "gradual".... The market remains somewhat skeptical, as year-end fed funds futures suggested only two rate hikes are expected next year." It continues, "In the final weeks of 2015, the yield spread between prime and government MMFs widened. Behind this move was a desire by many foreign banks to issue debt in longer maturities for regulatory reasons. As a result, banks were willing to pay higher yields to borrow in the longer term. Prime fund purchases were concentrated in three- to six-month maturities in both fixed and floating-rate instruments. Given the elevated demand, we expect three-month LIBOR to remain high in the coming weeks, potentially causing spreads between prime and government MMFs to widen even further. Over the course of the year, yield spreads may further diverge as demand for government MMFs ramps up in front of the October 14, 2016, regulatory reform implementation." They add, "According to money fund tracker Crane Data, nearly $173 billion of prime MMFs converted to government MMFs in November and December 2015. Crane expects that approximately $262 billion in prime MMF assets will eventually join the government category, suggesting that about $90 billion of prime MMFs are awaiting conversion. Additional demand for government MMFs may come from institutional prime MMF clients seeking a stable net asset value and from depositors being encouraged to withdraw money from banks, which view institutional deposits as increasingly costly from a regulatory perspective. While the increased demand for government MMFs may be substantial, supply should be adequate based on increases to the Fed's RRP from $300 billion to $2 trillion and expected increases in T-bill supply." In other news, the FT writes "China tightens money market regulation", which says, "Regulators in China are planning to impose tighter rules on the rapidly expanding money market fund industry -- an industry that has transformed the way millions of Chinese invest their savings." (See yesterday's "Link of the Day" and our Jan. 20 News, "Ignites: MMF Fee Waivers Drop in 2015; Fitch on MMF Reform in China" for more on China.)

Treasury Today released an article entitled, "New rules for China's budding MMFs." It reads, "After a year of rip-roaring growth, change will soon be afoot in China's nascent money market fund (MMF) industry as new rules are introduced that promise to bring the regulation of MMFs closer in line with international standards. From February 2016, Chinese MMFs will be subject to a package of new requirements that should go some way to addressing concerns about risks that have been developing in the industry in the wake of the recent inflows. In a report published last week entitled "New Chinese Money Fund Rules Move Closer to International Standards," Fitch Ratings explained that the rules announced by the China Securities Regulatory Commission (CSRC) cover areas including investment scope, liquidity rules, NAV deviation and maturity limits. (See our Jan. 20 News, "Ignites: MMF Fee Waivers Drop in 2015; Fitch on MMF Reform in China.") The Treasury Today piece continues, "Last year we saw a huge growth in MMF investment in China, partly driven by institutional investors," says KL Cheah, Head of Global Liquidity Sales, Greater China, JPMorgan Chase Bank (China). "We are seeing a growing popularity in MMFs across the board as retail clients gain easier access to these investments, increasing popularity in MNCs using it as a cash management option and institutional funds flowing more readily into the product as well. This is happening at a time when we have regulatory development of the overall MMF industry in China that make it more investable and more comparable to the AAA rated funds market." Others industry experts agree on this assessment of the market. "We are seeing that more and more corporates that traditionally would have put their money in the bank are now beginning to accept MMFs as one of their investment options," says Li Huang [of] Fitch Ratings. Treasurers in China are beginning to warm to such investments for largely the same reasons as their international peers." It continues, "Further regulatory measures will therefore be required from the CSRC before the industry becomes fully in line with international standards. But even if such reforms are not forthcoming in the near future, a growing range of investment options aligned with MNC investment policies could still be on the cards in the near future. For all the growing popularity of MMFs amongst corporates as an alternative to bank deposits, the number of funds that meet investment policy criteria remain limited. As of the end of 2015, there were 263 MMFs in China with total assets of $4.6trn. Only five of these funds were AAA rated however.... "The regulation is moving in the right direction and the industry is in a growth phase," Cheah adds. "This is a trend that we see continuing.""

The US Treasury's Office of Financial Research released its "2015 Annual Report to Congress," which contains just a few brief mentions of money market mutual funds. The press release, entitled, "Office of Financial Research Issues 2015 Annual Report to Congress: Report Analyzes Threats, Describes Progress, and Presents 2016 Agenda" says, "Threats to financial stability arise when shocks expose vulnerabilities in the financial system. The report says threats to U.S. financial stability have edged higher since last year's report, but remain in the medium, or moderate, range; that assessment has not changed since the Federal Reserve incrementally increased short-term interest rates last month." We wrote about the OFR's previous Financial Stability Report in our Dec. 16 News," "Treasury OFR Releases Financial Stability Report; MMFs Minor Concern." The release adds, "I hope that, taken together, the two reports will help us communicate with a wide range of stakeholders while ensuring that we are transparent and accountable in our work and the ways we pursue it," said OFR Director `Richard Berner. The OFR develops tools to assess and monitor threats to financial stability, and evaluates the effectiveness of policy tools designed to improve the resilience of the U.S. financial system." We covered a previous report on "Liquidity Funds and Separately Managed Accounts" in our July 10 News, "OFR Sheds Light on Liquidity Funds, STIFs, Managed Accts in Form PF." One of the monitoring tools listed in the 80-page report is a "Money Market Fund Monitor," which, "Will examine individual funds and the industry as a whole on the basis of credit, interest rate, and liquidity risk. Each risk category will be analyzed based on portfolio statistics and holdings."

Barron's posted a blog piece, "Q4 Was Good For Vanguard, Tough for Pimco: S&P," that says, "The fourth quarter of 2015 saw investors add money to index and money market mutual funds, while pulling money from actively managed and bond funds, writes S&P Capital IQ's Todd Rosenbluth in a recent review of the sector. Vanguard Group was a clear winner, writes Rosenbluth, as the biggest fund provider only increased its lead over rivals, thanks to $54.1 billion in new money in the quarter. It saw $20 billion go into equity funds, $18 million in bond funds and $3 billion in money markets -- a rare trifecta in Q4. The Vanguard 500 Index Fund (VFINX) saw inflows of $1.2 billion and the Vanguard Total International Bond Index (VTIBX) added $3.2 billion." It adds, "Vanguard wasn't the only winner, however, with Goldman Sachs (GS) attracting $25 billion.... Goldman Sachs FS Money Market (FSMXX) had $7.9 billion and was an example of institutional fund with strong interest. However, investors pulled $977 million and $644 million, respectively, out of Goldman's equity and bond funds.... The fourth quarter wasn't so bright for Pimco: With $22 billion in outflows, it lagged the broader industry.... It wasn't all bad for the firm though, as the PIMCO Income Fund (PONAX), "which has a top-quartile multi-sector income bond fund, pulled in $2.5 billion last quarter." Rosenbluth also highlights JPMorgan's (JPM) funds, among others, noting its $1.9 billion in new money to its equity funds and $109 million to bond funds, including the JPMorgan Growth Advantage (VHIAX), although its money market funds saw outflows."

Wells Fargo Securities writes about last week's Crane's Money Fund University in the Jan. 25 issue of its "Daily Short Stuff" commentary. Co-author Vanessa Hubbard was one of the speakers at MFU, presenting with Bank Hapaolim Treasurer Marian Trano on "CDs, TDs, and Bank Debt." Wells writes, "Last week the Crane Money Fund University in Boston topped its previous record in terms of attendance. We are pleased with the attendance record, and believe that it shows a continued commitment to the space as money market fund advisors send junior analysts to bone up on the instruments available in the money markets. In his comments on the "State of the Money Fund Industry," Crane noted that the migration out of prime funds is not likely to be as dramatic as many expect it to be due to the yield advantage [prime funds] will have over government funds in a rising rate environment. Currently, the 7-day yield on the Crane prime institutional index is 21 basis points, versus 8 basis points on the government index and 5 basis points on the Treasury index. This spread will likely grow as we believe that many money fund advisors are still subsidizing their operations, and once all funds get back to full fees, the spreads will widen even further. Nevertheless, while Mr. Crane believes the outflows are likely to be lower than expected, money fund complexes continue to convert from prime to government. Crane noted that the total asset value announced for conversion is currently $264 billion, with more than $172 billion of that already converted. Mr. Crane noted that he believes there will be massive outflows from bank deposit products once money fund yields hit 100 basis points. The reasoning is that given the bank regulatory environment and the amount that banks are already holding in terms of "excess" deposits, it is unlikely that they will be as competitive with non-operating deposit rates as they have been in the past, which will likely create an even wider dispersion between fund yields and deposit yields. However, whether these deposits move into government or prime products is difficult to say. We could just as easily see the assets flow into government funds, and simply accept a lower yield than a prime fund. The regulatory stumbling blocks that we see amongst money market clients remain the same, specifically the liquidity issues associated with gates and fees, and the operational issues associated with the floating NAV. While most cite one or the other regulatory change as the main concern, it is rare amongst the clients we interact with that neither is an issue." In other news, the UK-based Investment Association, released 2015 year-end statistics. It says, "Money Market funds saw net retail sales of L591 million in 2015, their highest on record and up from L63 million in 2014." (The U.K. money fund market is tiny with just over $10 billion in assets as of Q3'15, according to ICI.)

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