A press release entitled, "ICD Survey Indicates 88% of Corporates Plan on Increasing or Maintaining Money Market Fund Investments in 2019" tells us, "ICD, the leading independent trading and investment risk management platform ... released its '2019 ICD Client Survey Results.' Survey invitations were sent to all ICD clients globally, with 141 participants offering valuable insights into the global corporate outlook for 2019 on trading, investment trends and technology preferences."

It explains, "According to survey findings, 88% of investors plan on increasing or maintaining their current level of investment in Money Market Funds (MMFs), indicating minimal impact on MMF investment post US and EU money fund reform. Additionally, clients provided insights on other short-term investments, 23% indicated they are invested in or plan on investing in Short Duration Bond Funds, 56% in Time Deposits and 11% in ETFs. In the United States, 64% of respondents are investing in or plan on investing in Prime Funds in 2019, an increase of 4% over 2018 ICD Client Survey findings."

ICD tells us, "On the technology front, the trend toward "digital transformations" continues through 2019. While the majority of ICD client respondents have a Treasury Management System (TMS) in place, 23% of all respondents plan on implementing or changing their TMS in the next 12 months. An additional trend realized through the ICD Client Survey is in regards to ICD's Customer Service. In-line with last year's results, 99% of clients scored ICD's customer service as excellent or above average and the vast majority graded ICD Portal's functionality as excellent."

Tory Hazard, CEO of ICD says, "While European MMF Reform posed technological and operational challenges behind the scenes, it appears to have had little effect on ICD clients and their portfolio composition. We invested heavily this past year in people and technology to deliver the highest level of support for our clients, so I am thrilled to see the positive feedback from clients. Exceptional service is a core focus for ICD."

Finally, the release adds, "Additional Key Findings: 64% of global clients have a TMS in place. Zero European respondents indicated a decrease in USD & GBP MMFs investment due to European MMF Reform, and only 2% said they would decrease EUR MMF investment." (ICD's survey results show Kyriba with the largest share of Treasury Management Systems in ICD's survey, followed by Logotech, Reval and Sungard.

The survey results explain, "In 2018, 60% of ICD Americas survey participants indicated they were already invested in or planned on investing in US Prime MMFs. In 2019, the interest in US Prime MMFs continues with 64% illustrating a desire to incorporate those funds into their portfolios. This trend demonstrates the appetite for higher yield and comfort with variable NAV funds."

In other news, Crane Data's latest monthly Money Fund Portfolio Holdings statistics will be published Wednesday, July 10, and we'll be writing our normal monthly update on the June 30 data for Thursday's News. But we also generate a separate and broader Portfolio Holdings data set based on the SEC's Form N-MFP filings. (We continue to merge the two series, and the N-MFP version is now available via Holding file listings to Money Fund Wisdom subscribers.)

Our new N-MFP summary, with data as of June 30, 2019, includes holdings information from 1,187 money funds (nine more than last month), representing assets of $3.613 trillion (up from $3.585 trillion). We review the latest data, which shows that total money fund assets surged over $3.6 trillion in June.

Our latest Form N-MFP Summary for All Funds (taxable and tax-exempt) shows Repurchase Agreement (Repo) holdings in money market funds totaling $1,211 billion (up from $1,178 billion), or 33.5% of all assets. Treasury holdings total $829.2 billion (down from $850.4 billion), or 22.9%, and Government Agency securities totaled $729.3 billion (down from $743.3 billion), or 20.2%. Commercial paper (CP) totals $342.4 billion (up from $337.2 billion), or 9.5%, and Certificates of Deposit (CDs) total $258.0 billion (up from $242.9 billion), or 7.1%. The Other category (primarily Time Deposits) totals $139.5 billion (up from $129.4 billion), or 3.9%, and VDRNs account for $103.7 billion (up from $103.4 billion last month), or 2.9%.

Broken out into the SEC's more detailed categories, the CP totals were comprised of: $205.1 billion, or 5.7%, in Financial Company Commercial Paper; $61.6 billion or 1.7%, in Asset Backed Commercial Paper; and, $75.8 billion, or 2.1%, in Non-Financial Company Commercial Paper. The Repo totals were made up of: U.S. Treasury Repo ($751.8B, or 20.8%, U.S. Govt Agency Repo ($416.4B, or 11.5%) and Other Repo ($43.1B, or 1.2%).

The N-MFP Holdings summary for the 214 Prime Money Market Funds shows: CP holdings of $337.1 billion (up from $332.1 billion), or 33.1%; CD holdings of $258.0 billion (up from $242.9 billion), or 25.3%; Repo holdings of $189.8 billion (up from $171.9 billion), or 18.6%; Other (primarily Time Deposits) holdings of $93.3 billion (up from $85.2 billion), or 9.2%; Treasury holdings of $75.9 billion (down from $109.6 billion), or 7.5%; Government Agency holdings of $58.9 billion (down from $60.2 billion), or 5.8%; and VRDN holdings of $5.9 billion (down from $6.1 billion), or 0.6%.

The SEC's more detailed categories show CP in Prime MMFs made up of: $205.1 billion (up from 197.0 billion), or 20.1% in Financial Company Commercial Paper; $61.6 billion (up from 60.9 billion) or, 6.0% in Asset Backed Commercial Paper; and $70.4 billion (down from $74.2 billion), or 6.9% in Non-Financial Company Commercial Paper. The Repo totals include: U.S. Treasury Repo ($96.0 billion, or 9.4%), U.S. Govt Agency Repo ($50.7 billion, or 5.0%), and Other Repo ($43.1 billion, or 4.2%).

Email This Article

Use a comma or a semicolon to separate

captcha image