Federated Hermes' Deborah Cunningham writes on "The New Magnificent Seven" in her latest monthly commentary. Subtitled, "Total US money fund assets push past $7 trillion again," the piece states, "The growth of money market mutual funds since the Federal Reserve first hiked rates in 2022 has been something to behold. Not as thrilling as Akira Kurasawa's 'Seven Samurai' and John Sturges' beloved adaptation, 'The Magnificent Seven,' or as trendy as the Mag 7 tech behemoths. But with total US assets under management (AUM) again topping $7 trillion, just as spectacular." (Note: Thanks once more to those who supported our Bond Fund Symposium last week in Newport Beach! Watch for coverage in coming days and in our upcoming Money Fund Intelligence and Bond Fund Intelligence. Attendees and Crane Data subscribers may access the conference binder, Powerpoints and recordings via our "Bond Fund Symposium 2025 Download Center.")
Federated's Money Market CIO tells us, "According to the Investment Company Institute (ICI), AUM in US products passed that mark in March for the first time. We do not think this growth is substantially due to the recent up, then down again, trajectory of the stock market. The argument that investors are placing cash in liquidity products to weather the storm is belied by the nature of the flows."
She states, "In March, when you might expect most investors would have been concerned that the tariff-influenced stock market correction might become a crash, institutions pulled their money from the relative safety of money funds. Some expected these sophisticated and active clients to run for cover to liquidity, yet they did the opposite. Many who did pull assets seemed -- or actually revealed -- that they were motivated by other reasons, and some of that money is likely to eventually return."
Cunningham asks, "But didn't retail clients invest more in March? Yes, but at a growth rate consistent with the extensive migration to money funds seen over the last several quarters. We can't pinpoint from where those assets came. But the steady nature of the inflows supports the hypothesis that people are fed up with low interest rates of other products."
She adds, "It's not just US money funds. To our knowledge, assets in many non-money fund (rule 2a-7) products, such as investment pools and private funds, have risen; and the ICI reports that total global money fund AUM have also reached record highs. Cue the famous heroic 'Magnificent Seven' theme."
In other news, with now less than 3 months to go until Crane's Money Fund Symposium, which will be held in Boston, June 23-25, we are also starting preparations for our 11th Annual European Money Fund Symposium. The preliminary agenda has been released and registrations are now being taken for this year's European event, which will take place Sept. 25-26 at the Hilton Dublin in Dublin, Ireland. We provide more details on both shows below, and feel free to contact us for more information.
Our 2024 European Symposium event in London attracted a record 210 money fund professionals, sponsors and speakers. Given higher for longer rates and the potential for another round of regulatory changes in Europe, we expect our show in Dublin to again be the largest gathering of money market professionals outside the U.S. "European Money Fund Symposium offers European, global and 'offshore' money market portfolio managers, investors, issuers, dealers and service providers a concentrated and affordable educational experience, and an excellent and informal networking venue," says Crane Data President Peter Crane. "Our mission is to deliver the best possible conference content at an affordable price to money market fund professionals," he adds.
Registration for European Money Fund Symposium is $1,000 USD. EMFS will be held at the Hilton Dublin. Hotel rooms must be booked before August 21 to receive our discounted rate of E269. Visit www.craneeurosymposium.com to register, and contact us to request the PDF brochure. (Let us know too if you'd like information on speaking or sponsorships.)
Also, with less than three months to go, Crane Data is ramping up preparations for our `big show, Money Fund Symposium, which is June 23-25 at The Renaissance Boston Seaport. The latest agenda is out and registrations are now being taken.
Money Fund Symposium attracts money fund managers, marketers and servicers, cash investors, money market securities dealers, issuers, and regulators. Visit the Money Fund Symposium website for more information. Registration is $1,000, and discounted hotel reservations are available. (E-mail us at info@cranedata.com to request the full brochure.)
Finally, mark your calendars for our next Money Fund University "basic training" event, scheduled for Dec. 18-19, 2025, in Pittsburgh, Pa, and for next year's Bond Fund Symposium, which will be March 27-28, 2025 in Boston, Mass. Let us know if you'd like more details on any of our events, and we hope to see you in Boston in June, in Dublin in September or in Pittsburgh in December!"
