A press release entitled, "Dreyfus Launches SPARK Shares of Dreyfus Government Cash Management Available Exclusively through BNY Mellon," tells us, "Dreyfus, one of the largest, trusted cash and liquidity managers, announced today the launch of SPARK shares (SPKXX). The share class allows clients to drive change with their liquidity investments by directing a donation to an eligible non-profit organization of their choice. The donation is expected to result in a positive, quantifiable impact for the selected organization." (Note: Thanks again to those who attended our European Money Fund Symposium in Edinburgh this week! Mark your calendars for next year's show, Sept. 19-20, 2024 in London!)
Laide Majiyagbe, Head of Financing and Liquidity at BNY Mellon Markets, comments, "Dreyfus created SPARK shares to give clients the power to drive change by selecting a charitable cause that aligns with their giving goals. SPARK shares support clients' philanthropic aspirations, and we are pleased to make it available exclusively through BNY Mellon, including our LiquidityDirect platform."
The release explains, "Offered through the flagship Dreyfus Government Cash Management fund, Dreyfus' largest money market fund with $115 billion in assets and nearly 40 years in operation, SPARK shares will donate 10% of net revenue annually to the selected non-profit based on each client's average balance. Our inaugural investors, including Jefferies, Macquarie Group and Protective Life Corporation, have invested $1 billion in SPARK shares."
Stephanie Pierce, CEO for Dreyfus, Mellon and Exchange-Traded Funds, adds, "Investors in SPARK shares can make a difference where they believe it matter the most. Our aspiration is to help our clients make their cash work harder by positively impacting their communities. Our flagship Dreyfus Government Cash Management fund is an industry-leading money market fund that offers a competitive yield and is led by a seasoned team. Dreyfus is proud to extend our legacy of innovation by helping clients make an impact while managing their liquidity."
Dreyfus also says, "The launch of SPARK shares is another example of BNY Mellon's endeavor to leverage its financial platforms and global capabilities to support local communities. Dreyfus and BNY Mellon are proud to offer investors the opportunity to fulfill their own philanthropic goals, as well as their core liquidity needs, through SPARK shares. For more information on SPARK shares please visit: https://www.dreyfus.com/products/the-spark-shares.html."
The Wall Street Journal broke the news in a brief entitled, "Dreyfus Puts Charitable Twist on Money-Market Fund Investing. It states, "One of the biggest names in money-market funds is making an unusual play to get investors' attention. Dreyfus, a unit of BNY Mellon, will let big clients of its flagship, $115 billion Government Cash Management fund effectively redirect 10% of the annual fees they pay toward a nonprofit of their choice."
The update adds, "Investors have parked a record $5.6 trillion in money-market funds, taking advantage of the highest interest rates in decades for these low-risk investments. Clients need to invest at least $75 million in a new class of money-market securities known as Spark shares to take part in the program. The donations will be based on net revenues generated by BNY Mellon from Spark share management fees."
In other news, Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of Sept 22) includes Holdings information from 77 money funds (up 6 from a week ago), or $2.970 trillion (down from $2.989 trillion) of the $6.019 trillion in total money fund assets (or 49.3%) tracked by Crane Data. (Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here.)
Our latest Weekly MFPH Composition summary again shows Government assets dominating the holdings list with Repurchase Agreements (Repo) totaling $1.501 billion (down from $1.552 trillion a week ago), or 50.5%; Treasuries totaling $910.1 billion (down from $960.5 billion a week ago), or 30.6%, and Government Agency securities totaling $228.2 billion (down from $238.9 billion), or 7.7%. Commercial Paper (CP) totaled $106.3 billion (up from a week ago at $79.3 billion), or 3.6%. Certificates of Deposit (CDs) totaled $91.9 billion (up from $73.0 billion a week ago), or 3.1%. The Other category accounted for $96.4 billion or 3.2%, while VRDNs accounted for $36.0 billion, or 1.2%.
The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $910.1 billion (30.6% of total holdings), the Federal Reserve Bank of New York with $608.7 billion (20.5%), Fixed Income Clearing Corp with $227.4B (7.7%), Federal Home Loan Bank with $167.6B (5.6%), RBC with $55.9B (1.9%), JP Morgan with $54.8B (1.8%), BNP Paribas with $54.6B (1.8%), Federal Farm Credit Bank with $52.7B (1.8%), Citi with $51.0B (1.7%), and Barclays PLC with $47.6B (1.6%).
The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($259.6B), Fidelity Inv MM: Govt Port ($186.3B), JPMorgan 100% US Treas MMkt ($155.9B), Morgan Stanley Inst Liq Govt ($154.1B), Federated Hermes Govt ObI ($144.1B), BlackRock Lq FedFund ($136.8B), State Street Inst US Govt ($130.4B), Dreyfus Govt Cash Mgmt ($111.9B), Fidelity Inv MM: MM Port ($111.7B) and Allspring Govt MM ($111.2B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
