Tuesday promises to be a full day for those interested in money market mutual funds. BlackRock announced Q4 earnings this morning and will host a conference call at 9am, where CEO Larry Fink will likely comment on a number of issues involving money funds. (Look for quotes to be added after the call.) There are also two Webinars discussing the pending "shadow" NAV disclosures, one from ICI at noon and one from AFP with BlackRock money fund managers at 3:30.
BlackRock's earnings release had little on "cash," but it did say, "Cash management flows remained subdued, although average AUM increased approximately 4%. Reported net inflows include the stable value fund referenced above, which is being invested in cash temporarily. [Earlier the release said, 'Results in the Americas institutional channel were muted by the transfer of the stable value AUM to cash management.'] Excluding the transfer and related outflows from the fund, cash management had net withdrawals of $6.2 billion, reflecting client re-risking and year-end cyclicality. We expect rates to remain low and flows to remain muted at best."
As we said in Friday's "Link of the Day," quoting a notice sent to reporters, "The Investment Company Institute (CI) will host a webinar and conference call on Tuesday, January 25 to present new research on money market funds, titled Stable NAVs and Shadow Prices of U.S. Money Market Funds. This paper explains and examines the factors that can impact money market funds' per-share market values, known as 'shadow prices.' On January 31, 2011, the SEC will begin publishing a snapshot of money market funds' shadow price data with a 60-day lag -- a requirement that was included in the SEC's adoption of new regulations in January 2010 to require enhanced liquidity, credit quality and maturity standards for money market funds."
The press update (which hasn't been posted on the ICI website) continued, "ICI Chief Economist Brian Reid will host the webinar and call with members of the media and public beginning at 12:00 p.m. EST.... Webinar participants can view the slides, listen to the presentation and participate in the Q&A via the web address below: http://www.myeventpartner.com/Investment1."
The AFP Webinar, entitled, "Mark-to-Market NAV for Money Market Funds: What does it really mean?" will also take place Tuesday, January 25 but from 3:30-4:30 p.m. ET. The description says, "Per the 2a-7 money market fund rule changes as directed by the SEC, the mark-to-market NAV will begin being reported (60 days in arrears) in early February. Hear from a member of BlackRock's cash management team as they present some of the factors that influence the mark-to-market NAV and its characteristic daily fluctuations, as well as what shareholders should consider in assessing the market value."
Watch for more coverage later today and tomorrow.... See also, our Crane Data News from Jan. 21, "BlackRock Posts Shadow NAV Piece, Shows Range Rarely Breaks 0.999", which said, "BlackRock ... published a new "Viewpoint" recently that discusses the "shadow" NAV. Entitled, "The New Regulatory Regime for Money Market Funds: A Window into the Mark-to-Market NAV." It says, "Since the inception of money market funds several decades ago, a stable net asset value per share (NAV) has been a defining feature of this investment vehicle. Shareholders of money market funds managed in accordance with Rule 2a-7 under the Investment Company Act of 1940 subscribe and redeem shares at a net asset value of $1.00 per share. While money market funds seek to achieve a stable net asset value of $1.00 per share, there is no guarantee that it will be maintained."
