While we haven't seen any more SEC filings announcing exits from the Prime Institutional money fund sector since early this month (see our Aug. 6 News, "DFA Short-Term Investment Fund Converts to Ultra-Short; FT on Flows"), we have seen a number of previously announced exits and mergers take place over the past 2 weeks. On Friday, the Prime Institutional UBS Select Prime Money Mkt Inst (SELXX, $5.196B) merged into the Prime Retail UBS Prime Reserves Fund and the Prime Inst UBS Select Prime Money Mkt Pref (SPPXX, $3.215B) merged into the Prime Retail UBS Prime Preferred Fund. Earlier in August, DWS ESG Liquidity Cap (ESIXX), DWS ESG Liquidity Inst (ESGXX) and DWS Liquidity Inst Res (ESRXX) all liquidated on 8/14/2024. Also, on 8/16, Allspring Heritage Adm (SHMXX) merged into Allspring Govt MM Adm (WGAXX), Allspring Heritage I (SHIXX) merged into Allspring Govt MM Inst (GVIXX), Allspring Heritage Sel (WFJXX) merged into Allspring Govt MM Sel (WFFXX) and Allspring Heritage Svc (WHTXX) merged into Allspring Govt MM Svc (NWGXX). We've made these changes in our Money Fund Intelligence Daily product, and they will also be reflected in the upcoming MFI XLS monthly when it ships in early September. Later this week, we'll see Invesco Liquid Assets Institutional (LAPXX), Invesco STIC Prime Institutional (SRIXX) and UBS Limited Purpose Cash Inv Fund (UBS03) liquidate.
One way to monitor the exits and changes (besides watching our products) is to watch the Federal Reserve Bank of New York's list of "Reverse Repo Counterparties." Their most recent statement says, "Prime Master Fund managed by UBS Asset Management is no longer a reverse repo counterparty, effective August 26." They wrote about previous changes, "Allspring Heritage Money Market Fund is no longer a reverse repo counterparty, effective August 19," "DFA Short Term Investment Fund of The DFA Investment Trust Company is no longer a reverse repo counterparty, effective August 1," and "Federated Hermes Institutional Prime Value Obligations Fund is no longer a reverse repo counterparty, effective July 29."
The NY Fed's current list of "Money Market Funds" now includes: AllianceBernstein: AB Fixed-Income Shares, Inc., AB Government Money Market Portfolio; Allspring Funds Management: Allspring Government Money Market Fund, Allspring Money Market Fund and Allspring Treasury Plus Money Market Fund; BlackRock Liquidity Funds: FedFund, T-Fund, TempCash, TempFund, Money Market Master Portfolio and Treasury Money Market Master Portfolio; BNY Mellon Investment Adviser: Dreyfus Cash Management, Dreyfus Government Cash Management, Dreyfus Institutional Preferred Government Money Market Fund, Dreyfus Treasury and Agency Liquidity Money Market Fund, Dreyfus Treasury Obligations Cash Management; Capital Research and Management Company: American Funds U.S. Government Money Market Fund and Capital Group Central Fund Series, Capital Group Central Cash Fund; Cavanal Hill Investment Management: Cavanal Hill Government Securities Money Market Fund and Cavanal Hill U.S. Treasury Fund; Charles Schwab Investment Management: Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab Treasury Obligations Money Fund, Schwab US Treasury Money Fund, Schwab Value Advantage Money Fund and Schwab Variable Share Price Money Fund.
The list also includes: Columbia Management Investment Advisers: Columbia Short-Term Cash Fund, a series of Columbia Funds Series Trust II; DWS Investment Management Americas: DWS Government & Agency Fund and Government Cash Management Portfolio; Federated Investment Management: Edward Jones Money Market Fund, Federated Hermes Capital Reserves Fund, Federated Hermes Government Obligations Fund, Federated Hermes Government Obligations Tax-Managed Fund, Federated Hermes Government Reserves Fund, Federated Hermes Inst Prime Obligations Fund, Federated Hermes Municipal Obligations Fund, Federated Hermes Prime Cash Obligations Fund, Federated Hermes Tax-Free Obligations Fund, Federated Hermes Treasury Obligations Fund and Federated Hermes Trust for U.S. Treasury Obligations; Fidelity Management & Research Company: Fidelity Colchester Street Trust: Government Portfolio, Fidelity Colchester Street Trust: Money Market Portfolio, Fidelity Colchester Street Trust: Treasury Portfolio, Fidelity Hereford Street Trust: Fidelity Government Money Market Fund, Fidelity Hereford Street Trust: Fidelity Money Market Fund, Fidelity Newbury Street Trust: Fidelity Treasury Money Market Fund, Fidelity Phillips Street Trust: Fidelity Government Cash Reserves, Fidelity Revere Street Trust: Fidelity Cash Central Fund, Fidelity Revere Street Trust: Fidelity Securities Lending Cash Central Fund, Fidelity Salem Street Trust: Fidelity Series Government Money Market Fund and VIP Government Money Market Portfolio.
The Fed RRP list continues: Franklin Advisers: The Money Market Portfolio; Goldman Sachs Asset Management: Goldman Sachs Financial Square Government Fund, Goldman Sachs Financial Square Money Market Fund, Goldman Sachs Financial Square Prime Obligations Fund, Goldman Sachs Financial Square Treasury Obligations Fund, Goldman Sachs Financial Square Treasury Solutions Fund and Goldman Sachs Investor Money Market Fund; HSBC Global Asset Management (USA): HSBC U.S. Government Money Market Fund; Invesco Advisers: Invesco Government & Agency Portfolio, Invesco Government Money Market Fund, Invesco Premier U.S. Government Money Portfolio and Invesco Treasury Portfolio; Jackson National Asset Management: JNL Government Money Market Fund and JNL/WMC Government Money Market Fund; J.P. Morgan Investment Management: JPMorgan Liquid Assets Money Market Fund, JPMorgan Prime Money Market Fund, JPMorgan Tax Free Money Market Fund, JPMorgan U.S. Government Money Market Fund and JPMorgan U.S. Treasury Plus Money Market Fund.
It includes: Legg Mason Partners Fund Advisor: Western Asset/Government Portfolio, Western Asset/Liquid Reserves Portfolio and Western Asset/U.S. Treasury Reserves Portfolio; Morgan Stanley Investment Management: Morgan Stanley Institutional Liquidity Funds Government Portfolio, Morgan Stanley Institutional Liquidity Funds Government Securities Portfolio, Morgan Stanley Institutional Liquidity Funds Prime Portfolio, Morgan Stanley Institutional Liquidity Funds Treasury Portfolio and Morgan Stanley Institutional Liquidity Funds Treasury Securities Portfolio; Northern Trust Investments: NTAM Treasury Assets Fund, Northern Funds - U.S. Government Money Market Fund, Northern Funds - U.S. Government Select Money Market Fund, Northern Institutional Funds - Government Portfolio, Northern Institutional Funds - Government Select Portfolio and Northern Institutional Funds - Treasury Portfolio; Pacific Investment Management Company LLC: PIMCO Funds: PIMCO Government Money Market Fund; PGIM Investments LLC: Prudential Government Money Market Fund, Inc. - PGIM Core Government Money Market Fund and Prudential Investment Portfolios 2 - PGIM Institutional Money Market Fund; Principal Global Investors, LLC: Principal Funds, Inc. - Government Money Market Fund; RBC Global Asset Management (U.S.): RBC Funds Trust, U.S. Government Money Market Fund; SSgA Funds Management: Institutional Liquid Reserve Portfolio, Institutional US Gov. Money Market Fund, a series of the State Street Master Funds, State Street Navigator Securities Lending Government Money Market Portfolio and State Street Treasury Plus Money Market Portfolio.
Finally, it also includes: T. Rowe Price Associates: T. Rowe Price Cash Reserves Fund, T. Rowe Price Government Money Fund, Inc., T. Rowe Price Government Reserve Fund, T. Rowe Price Treasury Reserve Fund and T. Rowe Price U.S. Treasury Money Fund; UBS Asset Management (Americas): Government Master Fund, Limited Purpose Cash Investment Fund and Treasury Master Fund; U.S. Bancorp Asset Management: First American Government Obligations Fund and First American Treasury Obligations Fund; The Vanguard Group: Vanguard Treasury Money Market Fund, Vanguard Market Liquidity Fund, Vanguard Cash Reserves Federal Money Market Fund, Vanguard Federal Money Market Fund and Vanguard Money Market Portfolio; and Wilmington Funds Management: Wilmington U.S. Government Money Market Fund.
The NY Fed describes the "Eligibility criteria of the program, "In order to be eligible to become a reverse repo counterparty, a firm must be either: A state or federally chartered bank or savings association (or a state or federally licensed branch or agency of a foreign bank) with total assets equal to or greater than $30 billion, or reserve balances equal to or greater than $10 billion on the last quarter for which relevant FFIEC reports are available; or A government-sponsored enterprise; or An SEC-registered 2a-7 fund that has, measured at each month-end for the most recent six consecutive months, either net assets of no less than $2 billion or an average outstanding amount of RRP transactions of no less than $500 million. Firms must already have arrangements in place to operate in the triparty repo market, in transactions collateralized by U.S. government debt, agency debt and agency mortgage-backed securities. Firms must be able to execute RRPs with securities margined at 100% (i.e. the value of the securities provided by the New York Fed will equal the funds provided by the counterparty)."
For more, see the Crane Data News updates, "First American Inst Prime Obligations to Invest Solely in Liquid Assets" (7/23/24), "Schwab, JPM, Meeder Announce Prime Inst Conversions to Government" (7/18/24), "Invesco Files to Liquidate Prime Inst MMFs; UBS MF Converting to Retail" (6/13/24), "BlackRock Liquidates TempFund, LEAF" (6/10/24), "Federated Hermes Merging Prime Inst Money Funds; Prime Value To POF" (6/6/24), "Allspring to Merge Heritage MMF Into Govt MMF; UBS Converting Fund" (6/3/24), "DWS Liquidating ESG Liquidity Fund, 7th Prime Inst to Exit" (5/22/24), "Dreyfus Files to Liquidate Cash Management Prime Inst MMF, Tax Exempt" (5/13/24), "Goldman Files to Liquidate Prime Inst MMFs; Barron's: MMFs Tempting" (4/22/24), "Federated Liquidating Money Mkt Trust" (4/1/24), "Vanguard Market Liquidity Fund Files to Go Government, Joins American" (3/20/24) and "American Funds Central Cash to Convert to Govt to Avoid Liquidity Fees" (2/6/24).
