SunAmerica is the latest asset manager to exit the money market fund space, bringing the total of U.S. MMF managers down to 64. A Prospectus Supplement for its AIG Government Money Market Fund explains, "SunAmerica Asset Management, LLC, the Fund's investment adviser, and Touchstone Advisors, Inc. announced that they have entered into a definitive agreement for Touchstone to acquire certain assets related to SunAmerica's retail mutual fund management business. Under the terms of the agreement, twelve AIG Funds are expected to be reorganized into existing or newly created series of trusts in the Touchstone fund complex. Certain AIG Funds not covered by the agreement, including the Fund, will be liquidated."
It continues, "On February 8, 2021, the Board of Directors of SunAmerica Money Market Funds, Inc., on behalf of the Fund, approved a proposal to close the Fund to new and subsequent investments and thereafter to liquidate and dissolve the Fund pursuant to a Plan of Liquidation. Under the Plan of Liquidation, the Fund is expected to be liquidated on or about July 16, 2021. The Fund intends to convert all of its portfolio securities to cash or cash equivalents in preparation for the liquidation. Accordingly, the Fund is expected to deviate from its investment objective and investment strategies until it is liquidated on the Liquidation Date."
A press release, "Touchstone Investments Announces Purchase Agreement to Acquire Select Retail Mutual Fund Business Assets from AIG Life & Retirement," explains, "Touchstone Investments and AIG Life & Retirement, a division of American International Group, Inc. (AIG), announced ... that Touchstone Investments, a wholly owned subsidiary of Western & Southern Financial Group, has agreed to acquire select assets of AIG Life & Retirement's Retail Mutual Funds business."
It continues, "AIG's Retail Mutual Funds business manages $7.8 billion in assets across 18 mutual funds as of Dec. 31, 2020. Under the terms of the purchase agreement, 12 of those funds -- with approximately $7.5 billion in assets -- will be reorganized and merged into either existing Touchstone funds or into newly created Touchstone funds. After the reorganizations, the funds will be advised by Touchstone Advisors, Inc." The deal does not involved the AIG money market fund. For more on recent liquidations, see these Crane Data News pieces: "BlackRock Liquidates Ready Assets" (2/11/21); "Delaware Liquidates Govt Cash Mgmt" (1/11/21); "DWS Liquidating Govt CR (BIRXX)" (11/25/20); "BMO Liquidating Inst Prime MMF" (11/17/20); and "Morgan Stanley NY Muni MM Gone" (10/5/20).)
In other news, ICI released its latest monthly "Money Market Fund Holdings" summary, which reviews the aggregate daily and weekly liquid assets, regional exposure, and maturities (WAM and WAL) for Prime and Government money market funds. (For more, see our February 10 News, "Feb. MF Port. Holdings: Treasuries Hit Record $2.57T; Repo Below $1T.")
The MMF Holdings release says, "The Investment Company Institute (ICI) reports that, as of the final Friday in January, prime money market funds held 30.6 percent of their portfolios in daily liquid assets and 44.0 percent in weekly liquid assets, while government money market funds held 71.5 percent of their portfolios in daily liquid assets and 80.7 percent in weekly liquid assets." Prime DLA was down from 34.4% in December, and Prime WLA decreased from 46.8%. Govt MMFs' DLA decreased from 74.6% in December and Govt WLA decreased from 84.1% from the previous month.
ICI explains, "At the end of January, prime funds had a weighted average maturity (WAM) of 46 days and a weighted average life (WAL) of 61 days. Average WAMs and WALs are asset-weighted. Government money market funds had a WAM of 48 days and a WAL of 100 days." Prime WAMs were up two days from the previous month, while WALs were up three from the previous month. Govt WAMs were down one day while WALs were down three days from December.
Regarding Holdings By Region of Issuer, the release tells us, "Prime money market funds' holdings attributable to the Americas declined from $290.24 billion in December to $234.66 billion in January. Government money market funds' holdings attributable to the Americas declined from $3,283.99 billion in December to $3,240.21 billion in January."
The Prime Money Market Funds by Region of Issuer table shows Americas-related holdings at $234.7 billion, or 43.3%; Asia and Pacific at $85.6 billion, or 15.8%; Europe at $215.5 billion, or 39.8%; and, Other (including Supranational) at $6.3 billion, or 1.2%. The Government Money Market Funds by Region of Issuer table shows Americas at $3.240 trillion, or 87.7%; Asia and Pacific at $129.3 billion, or 3.5%; Europe at $308.3 billion, 8.3%, and Other (Including Supranational) at $15.4 billion, or 0.4%."
Crane Data also published its latest Weekly Money Fund Portfolio Holdings statistics Wednesday (a day late due to the President's Day Holiday), which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of Feb. 12, 2021) includes Holdings information from 68 money funds (down 10 funds from two weeks ago), which represent $1.947 trillion (down from $2.312 trillion) of the $4.757 trillion (40.9%) in total money fund assets tracked by Crane Data. (Our Weekly MFPH are e-mail only and aren't available on the website.)
Our latest Weekly MFPH Composition summary again shows Government assets dominating the holdings list with Treasury totaling $1.042 trillion (down from $1.275 trillion two weeks ago), or 53.5%, Repurchase Agreements (Repo) totaling $464.8 billion (down from $556.5 billion two weeks ago), or 23.9% and Government Agency securities totaling $251.0 billion (down from $281.7 billion), or 12.9%. Commercial Paper (CP) totaled $68.4 billion (down from $70.5 billion), or 3.5%. Certificates of Deposit (CDs) totaled $49.6 billion (down from $55.0 billion), or 2.5%. The Other category accounted for $50.0 billion or 2.6%, while VRDNs accounted for $21.3 billion, or 1.1%.
The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.047 trillion (53.8% of total holdings), Federal Home Loan Bank with $129.8B (6.7%), BNP Paribas with $63.5B (3.3%), RBC with $51.0B (2.6%), Federal Farm Credit Bank with $47.4B (2.4%), Federal National Mortgage Association with $42.8B (2.2%), Fixed Income Clearing Corp with $37.1B (1.9%), Mitsubishi UFJ Financial Group Inc with $31.2B (1.6%), Federal Home Mortgage Corp with $28.9B (1.5%) and JP Morgan with $28.7B (1.5%).
The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($196.4 billion), Goldman Sachs FS Govt ($162.1B), Wells Fargo Govt MM ($146.5B), Fidelity Inv MM: Govt Port ($133.5B), Morgan Stanley Inst Liq Govt ($115.6B), Dreyfus Govt Cash Mgmt ($96.2B), JPMorgan 100% US Treas MMkt ($93.2B), Goldman Sachs FS Treas Instruments ($80.7B), First American Govt Oblg ($77.9B) and JPMorgan Prime MM ($75.3B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary, or our Bond Fund Portfolio Holdings data series.)
