A press release, "CCLA's Public Sector Deposit Fund Reaches £1 Billion," tells us, "Client-owned fund manager CCLA today announces that its Public Sector Deposit Fund (PSDF), a money market fund, reached £1 billion of assets under management on 3 June 2020 for the first time since its launch in 2011. The fund's investor base is made up of 550 parishes, towns, districts, boroughs, counties, pension funds, police, fire authorities and housing associations amongst others."
CCLA's Peter Hugh Smith comments, "I'd like to thank all of our clients who have helped us to reach this milestone. A larger fund enables us to increase our lot sizes, to achieve even greater diversification and command better rates in the sterling money markets. This in turn means all clients benefit from the fund's growth which is so important during these fiscally-challenged times."
The release continues, "The Covid-19 crisis is hitting many of the regular income streams councils rely on at a time when councils are having to spend more addressing issues associated with the crisis. To be able to meet potential redemption requests from investors, the fund is holding increased levels of liquidity."
Hugh Smith adds, "We can see that some councils are holding up-front cash payments from government to deploy in meeting the challenges of Covid-19, while others are already carefully managing cash on a daily or weekly basis. It is evident that both existing and new clients are using CCLA's Public Sector Deposit Fund to optimise their cash management and help protect vital services they provide during this crisis."
Lastly, the release tells us, "Following the freezing of deposits in the 2008 global financial crisis, CCLA worked with the Local Government Association to create a UK regulated fund suitable for the public sector, modelled on its successful church and charity deposit funds. The fund integrates ESG factors into its processes through its screening for counterparties' corporate governance, and approach to climate change and sustainability. Additionally, CCLA leads an active engagement programme on wide ranging issues such as the living wage and mental health."
Crane Data's MFI International shows assets in European or "offshore" money market mutual assets jumping in USD and GBP currencies and falling in EUR currency in the latest month. These U.S.-style funds, domiciled in Ireland or Luxemburg and denominated in US Dollars, Pound Sterling and Euros, increased by $34.7 billion over the last 30 days to $1.004 trillion; they're up by $127.7 billion year-to-date. (See our May 15 News, "European Money Fund Assets Hit Record $1 Trillion; MFII, ICI Holdings.")
Offshore USD money funds, which broke over $500 billion in January, increased by $19.3 billion MTD, and they're are up $37.3 billion YTD. Euro funds decreased by E1.9 billion MTD, while YTD they're up E22.6 billion. GBP funds are up L11.5 billion MTD, and are up by L33.3 billion YTD. U.S. Dollar (USD) money funds (192) account for over half ($531.8 billion, or 53.0%) of our "European" money fund total, while Euro (EUR) money funds (92) total E121.2 billion (12.1%) and Pound Sterling (GBP) funds (123) total L258.2 billion (25.7%).
Fitch Ratings will be hosting a "European MMF Update – Liquidity, credit risk and sterling yields" on June 10th at 9am Eastern. It will feature Fitch's Alastair Sewell and Minyue Wang and will focus on "a discussion on latest developments in European Money Market Funds (MMFs) and the ongoing implications of the coronavirus crisis on the sector." The description says, "We will provide a detailed update on fund flows, liquidity and what happens next in terms of funds' credit risk. Analysts will also discuss the impact of negative-yielding UK government bonds on sterling MMFs."
In other upcoming webinar news, AFP will feature a session entitled, "Don't Gamble with Your Cash Investments" on June 24 at 3:00pm Eastern featuring our Peter Crane and Evergy Inc.'s James Gilligan. The introduction says, "While many corporate treasurers think they're protected from a 'black swan' money market event, the calm market environment the cash investment landscape is untenable. In this webinar, a money market fund tracker and corporate treasurer discuss the latest strategies for protecting against market volatility, investing in flat, falling and rising rate environments and analyze the major risks."
Finally, Crane Data will host its second online event, "Crane's Money Fund Webinar: Portfolio Holdings Update," on June 25 at 2:00pm (Eastern). (To register, go here: https://register.gotowebinar.com/register/7835412736738944525.) Crane Data's Peter Crane will host a 30 minute update on the latest trends in the money fund space, focusing on the latest Money Fund Portfolio Holdings data. Crane will be joined by J.P. Morgan Securities' Teresa Ho, who will comment on recent events and review the latest data on money market securities. The session will also include a 15 minute Q&A and brief product training segment on Money Fund Portfolio Holdings data and information."
For those of you who might have missed it, we hosted our first webinar, "Crane's Money Fund Update & Training," on May 21st. It featured Pete Crane reviewing recent events and trends involving money market mutual funds for 30 minutes, including discussions of asset flows, negative yield and a number of other topics. The webinar also included a brief, 15 minute tutorial on our Money Fund Intelligence Daily product. (See the bottom of our "Content" page for all of our Webinar and conference materials.)
Watch for more webinars in coming months, and we still remain hopeful that travel will resume later this summer and that we'll be able to host our annual Money Fund Symposium and European Money Fund Symposium. Crane's Money Fund Symposium is scheduled for August 24-26, 2020 at the Hyatt Regency Minneapolis. We'll continue to monitor events carefully in coming weeks, and we'll be prepared to move, to cancel, and/or to webcast if our client base deems it unsafe. Meanwhile, we'll be preparing for the show and taking steps to spread out and make the event safer. (Note: We'll offer full refunds or credits for any cancellations.)
Our next European Money Fund Symposium is now scheduled for Nov. 19-20, 2020 in Paris, France. Also, mark your calendars for next year's Money Fund University, which is scheduled for Jan. 21-22, 2021, in Pittsburgh, Pa, and our next Bond Fund Symposium, which is scheduled for March 25-26, 2021 in Newport Beach, Calif. Watch for details in coming months, and we'll keep you posted on our upcoming virtual, and live, events.
