Crane Data's latest Money Fund Intelligence Family & Global Rankings, which rank the asset totals (and break out by type of fund) and market share of managers of money market mutual funds in the U.S. and globally, were sent out to subscribers this morning. The April edition, with data as of March 31, 2015, shows asset decreases for a majority of money fund complexes in the latest month. Most managers also show losses over the past three months. Assets declined by $21.1 billion overall, or 0.8%, in March; over the last 3 months, assets are down $73.9 billion, or 2.8%. For the past 12 months through March 31, total assets are up $27.6 billion, or 1.1%. Below, we review the latest market share changes and figures. (Our domestic U.S. "Family" rankings are available in our MFI XLS product, our global rankings are available in our MFI International product, and the combined "Family & Global Rankings" are available to our Money Fund Wisdom subscribers.)
Goldman, Morgan Stanley, Franklin, and Northern were among the few gainers in March, rising by $6.2 billion, $5.8 billion, $2.6 billion, and $2.5 billion, respectively. With the gains, Morgan Stanley moved ahead of Wells Fargo into 9th place, while Northern jumped back ahead of SSgA into 11th place among U.S. money fund managers. Northern, Franklin, and Morgan Stanley led the increases over the 3 months through March 31, 2015, rising by $5.3B, $3.4B, and $2.6B, respectively.
Our latest domestic U.S. money fund Family Rankings show that Fidelity Investments remained the largest money fund manager with $403.4 billion, or 15.7% of all assets (down $958 million in March, down $10.4 billion over 3 mos., and down $11.9B over 12 months), followed by JPMorgan's $247.9 billion, or 9.6% (down $6.2B, down $10.4B, and down $11.9B for the past 1-month, 3-months and 12-months, respectively). BlackRock remained in third with $215.6 billion, or 8.4% of assets (down $1.9B, down $6.3B, and down $18.4B). Federated Investors was fourth with $205.7 billion, or 8.0% of assets (down $1.4B, down $10.2B, and down $10.7B), and Vanguard ranked fifth with $173.7 billion, or 6.7% (up $765M, up $66M, and down $258M).
The sixth through tenth largest U.S. managers include: Dreyfus ($169.8B, or 6.6%), Schwab ($160.7B, 6.2%), Goldman Sachs ($151.7B, or 5.9%), Morgan Stanley ($115.9B, or 4.5%), and Wells Fargo ($110.4B, or 4.3%). The eleventh through twentieth largest U.S. money fund managers (in order) include: Northern ($85.8B, or 3.3%), SSgA ($80.1B, or 3.1%), Invesco ($55.2B, or 2.1%), BofA ($47.5B, or 1.8%), Western Asset ($44.0B, or 1.7%), First American ($41.0B, or 1.6%), UBS ($36.0B, or 1.4%), Deutsche ($32.7B, or 1.3%), Franklin ($24.9B, or 1.0%), and RBC ($16.2B, or 0.6%). Crane Data currently tracks 72 managers, up one from last month. SunAmerica, with $692 million in assets, was added to our database.
Over the past year through March 31, 2015, BlackRock showed the largest asset increase (up $18.4B, or 9.3%), followed by Goldman Sachs (up $16.1B, or 11.8%), Morgan Stanley (up $15.8B, or 15.7%), Northern (up $9.0B, or 11.7%), Franklin (up $6.4B, or 37.8%), and Dreyfus (up $6.0B, or 3.7%). Other asset gainers for the year include: JP Morgan (up $4.2B, or 1.7%), HSBC (up $3.4B, or 32.1%), First American (up $3.2B, or 8.3%), Western (up $1.9B, 4.6%), and SEI (up $1.4B, or 11.4%). The biggest decliners over 12 months include: Fidelity (down $11.9B, or -2.9%), Federated (down $10.7B, or -4.9%), UBS (down $5.6B, or -13.5%), Invesco (down $4.7B, or -7.8%), Reich & Tang (down $4.3B, or -36.3%, Schwab (down $4.0B, or -2.4%), RBC (down $3.8B, or -19.0%), SSgA (down $2.6B, or -3.2%), and Deutsche (down $2.4B, or -6.8%). (Note that money fund assets are very volatile month to month.)
When European and "offshore" money fund assets -- those domiciled in places like Dublin, Luxembourg, and the Cayman Islands -- are included, the top 10 managers match the U.S. list, except for Goldman moving up to No. 4, and Western Asset appearing on the list at No. 10 (displacing Wells Fargo from the Top 10). Looking at the largest Global Money Fund Manager Rankings, the combined market share assets of our MFI XLS (domestic U.S.) and our MFI International ("offshore"), the largest money market fund families are: Fidelity ($410.2 billion), JPMorgan ($376.4 billion), BlackRock ($332.9 billion), Goldman Sachs ($234.3 billion), and Federated ($214.1 billion). Dreyfus/BNY Mellon ($198.0B), Vanguard ($173.7B), Schwab ($160.7B), Morgan Stanley ($134.3B), and Western ($122.0B), and round out the top 10. These totals include offshore US Dollar funds, as well as Euro and Pound Sterling (GBP) funds converted into US dollar totals. (Note that big moves in the dollar caused volatility in Euro and Sterling balances, which are converted back into USD.)
Also, our March 2015 Money Fund Intelligence and MFI XLS show that yields remained largely unchanged in March. Our Crane Money Fund Average, which includes all taxable funds covered by Crane Data (currently 858), remained at 0.02% for both the 7-Day Yield and the 30-Day Yield (annualized, net) Average. The Gross 7-Day Yield remained at 0.14%. Our Crane 100 Money Fund Index shows an average 7-Day Yield and 30-Day Yield of 0.03%, the same as last month. The Gross 7- and 30-Day Yields for the Crane 100 ticked up to 0.18% from 0.17%. For the 12 month return through 3/31/15, our Crane MF Average returned 0.02% and our Crane 100 returned 0.02% (both unchanged).
Our Prime Institutional MF Index (7-day) yielded 0.04% (up from 0.03%), while the Crane Govt Inst Index moved up to 0.02% (from 0.01%). The 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 Gross Yields for these indexes were: Prime Inst 0.21%, Govt Inst 0.12% (up from 0.11%), Treasury 0.07%, and Tax Exempt 0.09% (down from 0.10%) in March. The Crane 100 MF Index returned on average 0.00% for 1-month, 0.01% for 3-month, 0.01% for YTD, 0.02% for 1-year, 0.03% for 3-years (annualized), 0.05% for 5-year, and 1.50% for 10-years. (Contact us if you'd like to see our latest MFI XLS or Crane Indexes file.)
In other news, the Wall Street Journal reported on a new trend in the repo market in the story, "Repo Market Sees a Lending Shift as Rules Bite." It says, "Investors and small firms are entering the $2.6 trillion U.S. repo market, taking advantage of banks' retreat from a key corner of the credit markets. A handful of real-estate investment trusts and other borrowers are getting these short-term repurchase loans from firms other than banks, which have dominated the market."
The Journal adds, "Lately, many big banks have retreated from the repo market following the adoption of costly new regulations. That has prompted many borrowers such as mortgage REITs, which borrow at low rates to amplify returns on their investments, to use new brokers that aren't affected by the new rules or to borrow without a broker.... The shift by REITs and others is driven in part by the retreat of large banks. Outstanding repo loans at the largest U.S. banks have declined by 28% over the past four years, according to Barclays PLC. The bank predicts an additional 20% decline. This opens up a potential new revenue opportunity for nonbank brokers and others who aren't subject to the same regulations."
The article continues, "Money-market funds and other lenders who need access to the safest short-term securities are increasingly offering incentives to get the bonds they need for their portfolios. "It's been pretty much a downward grind in terms of repo supply overall," said Laurie Brignac, head of repo and government funds at Invesco Ltd., overseeing $77.3 billion in money-market fund assets. Ms. Brignac said she has been in discussions to use AVM LP, a nonbank broker in Boca Raton, Fla., that seeks to connect buyers and sellers in repos for a fee.... Deborah Cunningham [of] Federated Investors Inc. ... said she has been discussing new trading relationships with large securities holders such as insurance companies but that she hasn't yet completed any such trades."
