Since the Subprime Liquidity Crisis began almost a year ago in the money markets, mutual fund companies have been steadily increasing their already substantial disclosure and communications with investors. We're now seeing another wave of communications with several firms launching one-off or quarterly conference calls, some adding weekly e-mail updates, and all increasing their output of information in general.
Portfolio holdings and portfolio composition remain a focus. This morning, Deutsche Bank's DB Advisors is hosting a conference call entitled, "Quarterly Liquidity Management Webcast Series: Today's Money Market Environment and the Importance of Transparency," where Kevin Bannerton and Joe Benevento are giving an "update on developments in the short-term fixed income markets and discuss the recent challenges." (Like many, the call is open to institutional investors only.) The call should also mention Deutsche's recent initiative with Clearwater Analytics (see Crane Data's May 15, 2008 News "DB Advisors, Clearwater Going Live With Fund Transparency Initiative") to provide "money fund transparency".
Federated Investors has also announced that it will host another "Institutional Money Market Update" and will provide these "updates on a quarterly basis throughout 2008". Subtitled "Pursuing stability, liquidity and relative safety in turbulent markets," the July 30 call is also open only to institutional investors. Federated and CIO Debbie Cunningham have been in the forefront of the open communications movement, hosting conference calls, speaking with media, and posting numerous articles and updates on their website.
Reserve is sending e-mail alerts and hosting confercence calls "to reassure investors" who are asking, "Is my money fund safe?" "Real basic stuff," MD Eric Lansky tells us. Dreyfus have also been hosting regular client conference calls.
Oppenheimer Funds recently announced a "Weekly Dose" PDF e-mail update with yields, assets, and a portfolio composition breakout. HSBC too has been sending frequent economic and market updates to investors. Also, Goldman Sachs recently posted an update on Fannie and Freddie.
The increase in communications of course corresponds to the heightened level of scrutiny in the "cash" sector following a wave of fund support actions and following troubles with enhanced cash, auction rate securities, and now bank deposits. With new questions over Fannie Mae, Freddie Mac, and now regional bank holdings, money funds now know the drill. They're disclosing holdings more frequently, telling investors why their current investments are still safe, and discussing steps they're taking, and have taken, to assure investors that their $1.00 is still $1.00.
