The Dreyfus Corporation has filed a supplement to its Dreyfus Money Market Funds prospectus stating that the fund will disclose its portfolio holdings daily. Mutual fund news source ignites alerted us to this filing, and posted a story today entitled "Dreyfus Makes Bold Move on Money Fund Disclosure". (To see Dreyfus holdings page, click here.)

The filing says, "Each Dreyfus money market fund will disclose daily, on www.dreyfus.com, the fund's complete schedule of holdings as of the end of the previous day. The schedule of holdings will remain on the website until the fund files its Form N-Q or Form N-CSR for the period that includes the date of the posted holdings."

The ignites.com article quotes Dreyfus spokeswoman Patrice Kozlowski, "Dreyfus has taken this step in recognition of the industry's move towards greater transparency of money market fund holdings."

The article adds, "Money fund watchers say that while Dreyfus -- which went relatively unscathed by mortgage-backed securities exposure -- may gain some short-term marketing ground by being the first to disclose money fund holdings on such a regular basis, it's the analytics behind the holdings that investors really seek."

It also quotes our Pete Crane, "I would say daily holdings are going overboard. Investors are asking for the holdings, but what they really want is a breakout." Once the SIVs are gone, "I don't think people will really care. It's like looking at the control panel of a 747. It's not going to make you fell any better."

Clearwater Analytics, CacheMatrix, Crane Data, and others have projects underway to obtain and analyze daily holdings, and other fund companies have been disclosing holdings more frequently (in some cases daily and weekly on request). We'll undoubtedly hear more on this topic in coming weeks.

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