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The hits keep coming to the Prime Institutional money fund sector, as Goldman Sachs becomes the latest fund firm to announce an exit from the space. A Prospectus Supplement filing Friday for the $1.6 billion Goldman Sachs Financial Square Money Market Fund and the $2.9 billion Goldman Sachs Financial Square Prime Obligations Fund, including its Administration, Capital, Institutional, Preferred, Select, Service, and Drexel Hamilton Class Shares, explains, "At a meeting held on April 16-17, 2024, upon the recommendation of Goldman Sachs Asset Management, L.P., the Board of Trustees of Goldman Sachs Trust approved a proposal to liquidate the Goldman Sachs Financial Square Money Market Fund and Goldman Sachs Financial Square Prime Obligations Fund, each a series of the Trust. After careful consideration of a number of factors, the Board concluded that it is advisable and in the best interest of the Funds and their shareholders to liquidate the Funds. The Funds are expected to be liquidated on or about September 16, 2024, pursuant to Plans of Liquidation approved by the Board. The Liquidation Date may be changed without notice at the discretion of the Trust's officers." This brings the total of Prime Institutional money funds declaring either pending conversions to Government or pending liquidations to 5 funds to date, representing $229.3 billion in assets, or 34.9% of the $657.0 billion total in Prime Inst MMFs (assets as of 3/31/24). (For more, see these Crane Data News stories: "Federated Liquidating Money Mkt Trust" (4/1/24), "Vanguard Market Liquidity Fund Files to Go Government, Joins American" (3/20/24) and "American Funds Central Cash to Convert to Govt to Avoid Liquidity Fees" (2/6/24).)

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ICI's latest "Money Market Fund Assets" report shows money market mutual fund assets falling sharply again to $5.968 trillion as April 15 tax payments hit hard. MMF assets are still up by $82 billion, or 1.7%, year-to-date in 2024 (through 4/17/24), with Institutional MMFs down $29 billion, or -0.9% and Retail MMFs up $111 billion, or 6.6%. Over the past 52 weeks, money funds have risen by $760 billion, or 14.6%, with Retail MMFs rising by $507 billion (26.8%) and Inst MMFs rising by $253 billion (7.6%).

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Asset managers, brokerages and banks continue to report first-quarter earnings, but the calls and press releases have been relatively light on money fund and "cash sorting" comments. On the "Charles Schwab Corporation 2024 Spring Business Update Monday, CFO Peter Crawford comments, "The important point is that we sit here today a year removed from the events surrounding the regional banking crisis, we are in a very strong position with nearly all key business and financial indicators improving, in some cases substantially. We have seen meaningful progress back to historical ... organic growth, a continued moderation of client cash realignment activity with the pace slowing even faster than expectations [and] further reduction in the use of supplemental borrowing." Schwab's money fund assets rose to an average of $499.9 billion in Q1'24 from $316.4 billion a year earlier, an increase of $183.5 billion, or 58.0%. Deposits fell from $343.1 billion a year ago to $274.4 billion in Q1, a decline of $68.7 billion, or -20.0%. according to their quarterly earnings release.

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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 April 12) includes Holdings information from 70 money funds (up 9 from two weeks ago), or $3.129 trillion (up from $2.941 trillion) of the $6.407 trillion in total money fund assets (or 48.8%) 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 and our April 10 News, "April Money Fund Portfolio Holdings: Repo Rises, Treasuries, TDs Fall.")

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The Federal Reserve Bank of New York's Liberty Street Economics blog recently featured the article, "Monetary Policy and Money Market Funds in Europe." It states, "As shown in a past Liberty Street Economics post, in the United States, the yields of money market fund (MMF) shares respond to changes in monetary policy rates much more than the rates of bank deposits; in other words, the MMF beta is much higher than the deposit beta. Consistent with this, the size of the U.S. MMF industry fluctuates over the interest rate cycle, expanding during times of monetary policy tightening. In this post, we show that the relationship between the policy rates of the European Central Bank (ECB) and the size of European MMFs investing in euro-denominated securities is also positive -- as long as policy rates are positive; after the ECB introduced negative policy rates in 2015, that relationship broke down, as MMFs received large inflows during this period."

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Crane Data's latest Money Fund Intelligence International shows that assets in European or "offshore" money market mutual funds moved higher again over the past 30 days to a record $1.258 trillion, while yields were mostly flat. Assets for USD, EUR & GBP MMFs all rose over the past month. Like U.S. money fund assets, European MMFs have repeatedly hit record highs in 2023 and 2024. These U.S.-style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, increased by $15.6 billion over the 30 days through 4/11. The totals are up $60.8 billion (5.1%) year-to-date for 2024, they were up $166.9 billion (16.2%) for the year 2023. (Note that currency moves in the U.S. dollar cause Euro and Sterling totals to shift when they're translated back into totals in U.S. dollars. See our latest MFI International for more on the "offshore" money fund marketplace. These funds are only available to qualified, non-U.S. investors and are almost entirely institutional.) (Note too: For those attending TEXPO 2024, the Texas Treasury & Financial conference, April 14-16 in Houston, stop by Booth #504 to say "Howdy" to Crane Data!)

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The April issue of our Bond Fund Intelligence, which will be sent to subscribers Friday morning, features the stories, "Worldwide BF Assets Jump to $12.9 Trillion, Led by U.S," which ICI's latest collection of global bond fund marketplace statistics and "Bond Fund Symposium '24: Spreads Tight, Yield Attractive," which quotes from our recent fixed-income fund conference. BFI also recaps the latest Bond Fund News and includes our Crane BFI Indexes, which show that bond fund returns jumped in March while yields were mixed. We excerpt from the new issue below. (Contact us if you'd like to see our latest Bond Fund Intelligence and BFI XLS spreadsheet, or our Bond Fund Portfolio Holdings data.)

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With just two months to go, preparations are fully underway for Crane Data's big show, Money Fund Symposium. Money Fund Symposium 2024 is scheduled for June 12-14, 2024 at The Westin Pittsburgh, in Pittsburgh, Pa, and we're expecting a record crowd of over 600. The latest agenda for the largest gathering of money market fund managers and cash investors in the world is available and registrations are still being taken. Money Fund Symposium attracts money fund managers, marketers and servicers, cash investors, money market securities dealers, issuers, and regulators. Visit the Money Fund Symposium website at www.moneyfundsymposium.com for more information. Registration is $1,000, and discounted hotel reservations are available. We hope you'll join us in Pittsburgh in June! We review our latest conference information, as well as our upcoming April Treasury show travel schedule (including TEXPO and NEAFP), below.

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Crane Data's April Money Fund Portfolio Holdings, with data as of March 31, 2024, show that Repo holdings rose while Treasuries and Time Deposits fell. Money market securities held by Taxable U.S. money funds (tracked by Crane Data) decreased by $63.1 billion to $6.302 trillion in March, after increasing $66.9 in February, $86.6 in January, $51.1 billion in December and $244.0 billion in November. Assets decreased $57.9 billion in October, but increased $56.1 in September, $106.7 billion in August and $78.3 billion in July. Repo bounced back, increasing $13.4 billion, after a steep slide the month prior, but it remained in the No. 2 spot among portfolio segments. Treasuries decreased by $19.6 billion, but they continued to be the largest portfolio segment. The U.S. Treasury continues to be the single largest Issuer to MMFs. `In March, U.S. Treasury holdings fell to $2.540 trillion vs. the Fed RRP's $536.8 billion (which rose $72.2 billion). Agencies were the third largest segment, CP remained fourth, ahead of CDs, Other/Time Deposits and VRDNs. Below, we review our latest Money Fund Portfolio Holdings statistics.

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Crane Data's latest monthly Money Fund Portfolio Holdings statistics will be sent out Tuesday, and we'll be writing our regular monthly update on the new March 31 data for Wednesday's News. But we also already uploaded a separate and broader Portfolio Holdings data set based on the SEC's Form N-MFP filings on Monday. (We continue to merge the two series, and the N-MFP version is now available via our Portfolio Holdings file listings to Money Fund Wisdom subscribers.) Our new N-MFP summary, with data as of March 31, includes holdings information from 975 money funds (up 6 from last month), representing assets of $6.492 trillion (down from $6.546 trillion). Prime MMFs now total $1.403 trillion, or 21.6% of the total. We review the new N-MFP data, and we also look at our revised MMF expense data, which shows charged expenses flat and money fund revenues seeing a small drop in March.

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Crane Data's latest monthly Money Fund Market Share rankings show assets decreased among most of the largest U.S. money fund complexes in March, after jumping in February. Money market fund assets fell by $66.7 billion, or -1.0%, last month to $6.406 trillion. Total MMF assets have increased by $88.0 billion, or 1.4%, over the past 3 months, and they've increased by $777.5 billion, or 13.8%, over the past 12 months. The largest increases among the 25 largest managers last month were seen by Vanguard, Fidelity, Schwab, American Funds and UBS, which grew assets by $16.3 billion, $12.2B, $11.3B, $4.5B and $2.5B, respectively. Declines in March were seen by SSGA, JPMorgan, Goldman Sachs, Morgan Stanley and HSBC, which decreased by $30.3 billion, $21.5B, $21.3B, $8.5B and $6.7B, respectively. Our domestic U.S. "Family" rankings are available in our MFI XLS product, our global rankings are available in our MFI International product. The combined "Family & Global Rankings" are available to Money Fund Wisdom subscribers. We review the latest market share totals, and look at money fund yields, which were flat to slightly lower in March.

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The April issue of our flagship Money Fund Intelligence newsletter, which was sent out to subscribers Friday morning, features the articles: "Pending Reforms Trigger Prime Shift: Federated, Vanguard Go," which covers the budding exodus from Prime Institutional MMFs; "Bond Fund Symposium '24: Ultra-Shorts Look for Bounce," which quotes from our recent ultra-short bond fund conference; and, "Worldwide MF Assets Break $10 Trillion in '23; US Leads," which reviews ICI's latest global money fund statistics. We also sent out our MFI XLS spreadsheet Friday a.m., and we've updated our Money Fund Wisdom database with 3/31/24 data. Our April Money Fund Portfolio Holdings are scheduled to ship on Tuesday, April 9, and our April Bond Fund Intelligence is scheduled to go out on Friday, April 12.

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