The November issue of our monthly Money Fund Intelligence went out to subscribers earlier today, featuring the stories, "Brighter Outlook Could Forestall MMF Changes," "Calamos Veteran Frank Rachwalski Talks Funds," and "New Support Disclosures, New Type of CSA," as well as our traditional news coverage, performance rankings and tables, and index and benchmarking information. What a difference a month makes!
Crane Data believes that the stabilization and gradual recovery of the money markets and money fund industry makes it less likely there will be any earth-shattering changes to the money fund business, like moving away from the $1.00 share price, or NAV. MFI says, "Of course, the danger hasn't fully abated, and there likely will be changes to the regulations and structure of money market funds. But the biggest changes should come from advisors, who will undoubtedly seek to prevent a repeat of the massive bailout tab run up by their host of credit support actions.
The issue also discusses how some funds are now protecting their portfolios via "blanket" credit support agreements (CSAs), some of which began appearing in the latest batch of SEC "no-action" letters released to advisors. MFI quotes Joan Ohlbaum Swirsky of Stradley Ronon Stevens & Young, "The new variety of Capital Support Agreement can help support the market-based NAV of a fund if the market-based NAV drops to a specified trigger value and the decline results (at least in part) from a decline in the value of the specified holding due to market conditions, rather than due to any impairment of creditworthiness."
Finally, the distribution of performance information in Money Fund Intelligence has never been wider. Some funds experienced zero, and even negative yields in October, while others experienced yields of well over 3.0 percent. To request a sample copy of MFI, MFI XLS, MFI Daily or any of our other products, e-mail sales@cranedata.us.
