A recent filing for the Goldman Sachs Financial Square Funds reduced the management fees for the Goldman Sachs suite of money market mutual funds. Strategic Insight's SimFundFiling product explains, "On February 21, 2018, the Goldman Sachs Financial Square Federal Instruments, Goldman Sachs Financial Square Government, Goldman Sachs Financial Square Money Market, Goldman Sachs Financial Square Prime Obligations Money Market, Goldman Sachs Financial Square Treasury Obligations Money Market, Goldman Sachs Financial Square Treasury Instruments Money Market, Goldman Sachs Financial Square Treasury Solutions Money Market, Goldman Sachs Investor Money Market, and Goldman Sachs Investor Tax-Exempt Money Market funds will eliminate their advisory fee waivers at the same time as instituting an equivalent reduction in their contractual advisory fee schedule (see the Advisory Fee section for more changes to the funds)."
They explain, "Effective February 21, 2018, each of the Goldman Sachs Financial Square Government, Goldman Sachs Financial Square Prime Obligations, Goldman Sachs Financial Square Money Market, Goldman Sachs Investor Money Market, and Goldman Sachs Investor Tax-Exempt Money Market funds will reduce its management fee from 0.205% to 0.160%, and each of the Goldman Sachs Financial Square Federal Instruments, Goldman Sachs Financial Square Treasury Instruments, Goldman Sachs Financial Square Treasury Obligations, and Goldman Sachs Financial Square Treasury Solutions funds will reduce its management fee from 0.205% to 0.180%."
On a separate filing, the latest SimFund Filing bulletin adds, "Effective March 31, 2018, a front-end sales charge will no longer be assessed on purchases of Class A shares of $250,000 or more (previously, $500,000 or more) of the JPMorgan Floating Rate Income, JPMorgan Limited Duration Bond, JPMorgan Short Duration Bond, JPMorgan Short Duration Core Plus, JPMorgan Short-Intermediate Municipal Bond, and JPMorgan Ultra-Short Municipal funds. In addition, these funds will no longer charge a 0.75% contingent deferred sales charge (CDSC) if such shares (on which no sales charge was paid) are redeemed within the first 18 months after purchase and no finder's fees will be paid with respect to such shares. Class A shares purchased prior to March 31, 2018 will continue to be subject to the CDSC schedule currently in effect."
Another fee announcement, entitled, "First American Funds Announces Reduced Contractual Net Expenses for Treasury Obligations Fund Class P and Class Z Shares," explains, "The advisor has elected to make additional contractual fee waivers with the intended effect of lowering the fund's overall expenses. As of March 13, 2018, the advisor has introduced an additional two basis points (bps) of contractual fee waivers for the Class P and Class Z shares of the First American Treasury Obligations Fund, resulting in a contractual net expense ratio of 18 bps (24 bps gross). The advisor has contractually agreed to waive fees and reimburse fund expenses through March 14, 2019, so that the total annual fund operating expenses do not exceed as stated."
In other news, money market mutual fund assets rose slightly in the latest week, after falling sharply in the previous week. The Investment Company Institute's latest "Money Market Fund Assets" report shows that year-to-date, MMF assets have decreased by $17 billion, or -0.6%. Over 52 weeks they've increased by $171 billion, or 6.5%. ICI's numbers also show Prime money market fund assets increased for the second week in a row after two weeks of declines. Govt MMF assets rebounded after plunging last week.
ICI writes, "Total money market fund assets increased by $4.94 billion to $2.83 trillion for the week ended Wednesday, March 21, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $3.74 billion and prime funds increased by $1.42 billion. Tax-exempt money market funds decreased by $225 million." Total Government MMF assets, which include Treasury funds too, stand at $2.232 trillion (79.0% of all money funds), while Total Prime MMFs stand at $457.8 billion (16.2%). Tax Exempt MMFs total $135.1 billion, or 4.8%.
They explain, "Assets of retail money market funds increased by $129 million to $1.01 trillion. Among retail funds, government money market fund assets increased by $1.30 billion to $620.35 billion, prime money market fund assets decreased by $828 million to $264.16 billion, and tax-exempt fund assets decreased by $344 million to $128.33 billion." Retail assets account for over a third of total assets, or 35.9%, and Government Retail assets make up 61.2% of all Retail MMFs.
ICI's release adds, "Assets of institutional money market funds increased by $4.81 billion to $1.81 trillion. Among institutional funds, government money market fund assets increased by $2.44 billion to $1.61 trillion, prime money market fund assets increased by $2.25 billion to $193.67 billion, and tax-exempt fund assets increased by $119 million to $7.02 billion." Institutional assets account for 64.1% of all MMF assets, with Government Inst assets making up 88.9% of all Institutional MMFs.
Finally, thank you to those of you who attended and supported our 2nd annual Bond Fund Symposium in Los Angeles! (The event ends Friday at noon.) The Powerpoints and materials for Crane's Bond Fund Symposium are now available to conference attendees and Crane Data subscribers at our BFS 18 Download Center. (Watch for the recordings to go up on Monday.)
