Last week, we published our latest Money Fund Intelligence for August with data as July 31, 2013. Today, we highlight some of the July 31 data and averages. This month's issue features an article entitled, "Money Fund Expenses, Gross Yields, Hit Record Low." It says, "The average expense ratio charged by money market mutual funds fell to a record low 0.14% in July (this is our Crane Money Fund Average, a simple average of all taxable money funds), down 2 basis points from the prior month. Our Crane 100 Index, an average of the largest taxable money funds, also fell to a record low of 0.16% (like yields, expense ratios are annualized). The previous record low had been 0.15% (0.17% for the Crane 100) in November and December 2011."
The latest MFI added, "Gross yields for money funds also hit record lows in July 2013. The Crane Money Fund Average 7-Day Gross Yield was 0.16% in July, while the Crane 100 Gross 7-Day was 0.19%. November and December 2011 was also the prior record low for this statistics too (at 0.17% and 0.21%). Charged expense ratios (listed as "Exp%" in our tables) for July 2013 range from 0.20% for Prime Institutional and Prime Retail money funds to 0.08% for Treasury Inst and Retail funds. (Govt Inst and Govt Retail MMFs averaged 0.11%.) Tax Exempt MMFs charged a record low of 0.17% too in July. Annualized revenue from money market mutual funds fell below the $4 billion mark for the first time since we began tracking funds." (See the August issue for the accompanying charts and see our MFI XLS and historical Crane Indexes spreadsheet for more.)
For the month ended July 31, 2013, our Crane Money Fund Average, which includes all taxable funds covered by Crane Data (currently 816), remained at a record low of 0.01% for both the 7-Day and 30-Day Yield (annualized, net) averages. Our Crane 100 Money Fund Index shows an average yield (7-Day and 30-Day) of 0.02%, also a record low, and down from 0.04% last quarter and from 0.05% at the start of 2013. Our Prime Institutional MF Index yielded 0.03% (7-day, unchanged from June), the Crane Govt Inst Index, Crane Treasury Inst, Treasury Retail, Govt Retail and Prime Retail Indexes all yielded 0.01%. The Crane Tax Exempt MF Index also yielded 0.01%. The Crane 100 MF Index returned on average 0.00% for 1-month, 0.01% for 3-month, 0.02% for YTD, 0.04% for 1-year, 0.06% for 3-years (annualized), 0.26% for 5-year, and 1.70% for 10-years.
Last week, we also released our latest Family & Global Rankings, which shows gains by almost all the major money fund complexes in July. Goldman and Federated were the only two among the top 10 to show declines. Money fund assets rose by $27.8 billion, after falling $26.4 billion in June and rising $35.8 billion in May. Before May, assets had fallen in every month prior in 2013, dropping by $124.0 billion through April 30. Fidelity Investments remained the largest money fund manager, followed by J.P. Morgan and Federated Investors. The rest of the Top 10 managers of domestic U.S. money funds were also unchanged in order and included -- Vanguard, Schwab, BlackRock, Dreyfus, Goldman Sachs, Wells Fargo, and Morgan Stanley.
When "offshore" money fund assets -- those domiciled in places like Dublin, Luxembourg, and the Cayman Island -- are included, the top 10 match the U.S. list, except for BlackRock moving up to No. 3, Goldman moving up to No. 5, and Western Asset appearing on the list at No. 9.. We review these rankings below. (Note: Crane Data's July 31 Money Fund Portfolio Holdings were released Friday afternoon and that our "Reports & Pivot Tables" were sent out over the weekend. See our News coverage on these from yesterday.)
Our latest domestic U.S. money fund Family Rankings show Fidelity managing $421.4 billion, or 17.1% of all assets (up $604 million in July, up $11.6B over 3 mos. and up $13.4B over 12 months), followed by JPMorgan's $229.1 billion, or 9.3% (up $3.8B, down $3.2B, and down $12.1B for 1-month, 3-months and 12-months, respectively). Federated Investors ranks third with $220.3 billion, 9.0% (down $829M, down $2.8B, and down $8.6B), Vanguard ranks fourth with $171.2 billion, or 7.0% (up $912M, $6.1B, and $11.5B), and Schwab ranks fifth with $161.7 billion, or 6.6% (up $1.5B, $7.6B, and $9.7B) of money fund assets.
The sixth through tenth largest U.S. managers include: Dreyfus ($152.8 billion, or 6.2%), BlackRock ($147.0 billion, or 6.0%), Goldman Sachs ($123.4 billion, or 5.0%), Wells Fargo ($114.2 billion, or 4.7%), and Morgan Stanley ($94.7 billion, or 3.9%). The eleventh through twentieth largest U.S. money fund managers (in order) include: Northern, SSgA, Invesco, UBS, Western Asset, BofA, DB Advisors, First American, Franklin and RBC. Crane Data currently tracks 75 managers, down one from last month. (HighMark liquidated and their assets moved to #25 Reich & Tang.)
Over the past year, Fidelity shows the largest asset increase (up $13.4B, or 3.4%), followed by Vanguard (up $11.5B, or 7.2%) and Morgan Stanley (up $15.8B, or 20.5%). Other big gainers since June 30, 2012, include: Schwab (up $9.7B, or 6.4%), SSgA (up $9.3B, or 14.2%), Wells Fargo (up $9.2B, or 8.9%), and Northern (up $9.1 billion, or 13.7%). The biggest declines over 12 months include: JPM (down $12.1B, or 5.1%), Goldman Sachs (down $10.8B, or 8.5%), Federated (down $8.6B, or 3.7%), and First American (down $5.2B, or 12.7%). (Note that money fund assets are very volatile month to month.)
Looking at the largest Global Money Fund Manager Rankings, the combined market share assets of our Money Fund Intelligence XLS (domestic U.S.) and our Money Fund Intelligence International ("offshore), we show these families: Fidelity ($426.0 billion), JPMorgan ($359.6 billion), BlackRock ($238.3 billion), Federated ($231.1 billion), and Goldman ($190.7 billion). Dreyfus, Vanguard, Schwab, Western, and Wells Fargo round out the top 10. These totals include offshore US dollar funds, as well as Euro and Sterling funds converted into US dollar totals. (For more details, see our latest MFI Family & Global rankings e-mail or our MFI XLS and MFI International products.)
