The May issue of Crane Data's Money Fund Intelligence will be sent out to subscribers on Wednesday morning. The latest edition of our flagship monthly newsletter features the articles: "Crane Data Celebrates 8 Yrs; MMF Reforms Still Pending," which reviews our company history and the latest on regulations; "Deutsche's Joe Sarbinowski and Benevento Talk MMFs," which interviews Deutsche Asset and Wealth Management's two MDs; and, "Funds Critical of SEC Mini Studies; DERA Misses Mark," which reviews feedback on the SEC's recent "Staff Analysis of Data and Academic Literature Related to Money Market Fund Reform". We also updated our Money Fund Wisdom database query system with April 30, 2014, performance statistics and rankings this morning, and we'll send out our MFI XLS spreadsheet shortly. (MFI, MFI XLS and our Crane Index products are available to subscribers at our Content center.) Our April 30 Money Fund Portfolio Holdings data are scheduled to go out on Friday, May 9.
The latest MFI newsletter's lead article comments, "Crane Data, the publisher of Money Fund Intelligence, celebrates its 8th birthday this month. As we've done in past May issues, we’d like to review our progress and update you on our efforts. We also review the latest regulatory reform news. Crane Data was launched in May 2006 by money fund expert Peter Crane and technology guru Shaun Cutts to bring faster, cheaper and cleaner information to the money fund space. We began with our MFI newsletter and have grown to offer a full range of daily and monthly spreadsheets, database query systems and reports on U.S. and "offshore" money funds and other cash investments."
The article explains, "Crane Data has also become the leader in the money fund conference business. Our 6th annual Money Fund Symposium will take place in Boston, June 23-25, and we expect record attendance once again (as many as 500 attendees). We're also preparing for our second annual European Money Fund Symposium, which will take place in London at the Hilton London Tower Hotel on Sept. 22-23, 2014; it follows our successful entry into the "offshore" money fund marketplace last September with our inaugural event in Dublin. We also run Money Fund University, a "basic training" conference. The next one will be held Jan. 22-23, 2015, in Stamford, Conn."
The "profile" with Deutsche says, "This month, we interview Deutsche Asset & Wealth Management's Joe Sarbinowski, Global Head of Liquidity Management, Global Client Group & Managing Director, and Joe Benevento, Global Head of Cash Management & Managing Director. We discuss the latest developments in the liquidity markets, get an update on the company's Variable NAV Money Fund, and review offshore and other money fund-related issues. Our Q&A follows."
We ask Sarbinowski and Benevento, "MFI: How long have you been involved in the cash markets? Sarbinowski: In August, I will have been at the firm for 25 years, so I can provide the institutional memory. We have been in the liquidity management business since the late 1970's, initially doing private, white-label broker-dealer cash sweeps. In the '80s, we were also running [cash] for our own wealth management trust and securities services custody businesses. So the business has really evolved over that period of time. We cater to a wide spectrum of clients -- everything from wealth management, institutional, and of course sweep clients. We've evolved over the many years and now we are at this point united under one brand, Deutsche Asset & Wealth Management. Benevento: It's been about 23 years in the industry for me." (Watch for excerpts of this interview later this month, or write us to request the full article.)
The May MFI article on Funds Critical of SEC Mini Studies; DERA Misses Mark explains, "Over a dozen letters have been posted recently on the SEC's "Comments on Proposed Rule: Money Market Fund Reform" website, most in response to the SEC's "Staff Analysis of Data and Academic Literature Related to Money Market Fund Reform." Almost all of the commenters all took issue with these "mini" studies, with particular criticism directed at the SEC's "Safe Assets" piece. (Note: SEC Chief Economist and Division of Economic and Risk Analysis (DERA) Director Craig M. Lewis left the agency last week, but we don't believe this was related. The departure, and the negative reactions to these studies, though, could slow the Commission's recent infatuation with "data".)"
Crane Data's May MFI with April 30, 2014 data shows total assets falling by $59.3 billion $25.9 billion (after falling by $25.9 billion last month and $44.9 billion in February) to $2.489 trillion (1,238 funds, the same number as last month). Our broad Crane Money Fund Average 7-Day Yield and 30-Day Yield remained at a record low 0.01% while our Crane 100 Money Fund Index (the 100 largest taxable funds) yielded 0.02% (7-day and 30-day). On a Gross Yield Basis (before expenses were taken out), funds averaged 0.13% (Crane MFA, unchanged) and 0.16% (Crane 100) on an annualized basis for both the 7-day and 30-day yield averages. (Charged Expenses averaged 0.12% and 0.14% for the two main taxable averages.) The average WAM for the Crane MFA and the Crane 100 were 43 and 46 days, respectively, down 2 days and one day, respectively. (See our Crane Index or craneindexes.xlsx history file for more on our averages.)
