Money Market News

Archives »

On Friday, mutual fund news source ignites published the article, "Sponsors Waived $3.1B in Money Fund Fees in 2020." They write, "Money market fund sponsors waived $3.1 billion in fees last year, according to Investment Company Institute data. An economic slowdown spurred by the coronavirus pandemic led the Federal Reserve to cut short-term interest rates twice last March, to zero, after about two years of keeping the benchmark rate above 1.5%. With those cuts, yields tumbled, and a growing number of money funds began waiving fees to avoid zero or negative yields." We quote from their piece, and we also review the latest MFI International statistics on European money fund assets, yields and portfolio holdings, below. (Note: We're still taking registrations for this week's Money Fund University ($250), our "basic training" event, which takes place the afternoons of Jan. 21-22. Crane Data Subscribers and MFU Attendees may visit the "Money Fund University 2021 Download Center" to access conference materials and recordings in coming days.)

To the top E-mail this article

The January issue of our Bond Fund Intelligence, which was sent to subscribers Friday morning, features the lead story, "Top Stories & Funds of '20: More Asset Gains, Low Yields," which reviews the biggest bond fund news and top-performing funds last year, and "Worldwide BF Assets Jump to $12.2 Trillion, Led by U.S.," which covers the previous quarter's increases among the largest global bond fund markets. BFI also recaps the latest Bond Fund News and includes our Crane BFI Indexes, which show that bond fund yields fell and returns were up yet again in December. We excerpt from the new issue below. (Contact us if you'd like to see our Bond Fund Intelligence and BFI XLS spreadsheet, or our Bond Fund Portfolio Holdings data. Register too for next week's Money Fund University, Jan. 21-22 Online.)

To the top E-mail this article

Wells Fargo Asset Management's latest monthly "`Portfolio Manager Commentary" features a section entitled, "The Year in Review," which highlights some of the major market events of 2020. They write, "It's hard to believe, but the beginning of 2020 was relatively benign. In January, the Federal Reserve (Fed) was expected to keep engaging in Temporary and Permanent Open Market Operations through April in order to minimize volatility and maintain a stable rate environment, with yields generally bumping along at the bottom of its target range of 1.50% to 1.75%. The prime markets experienced a collapse in credit spreads, which began trading below benchmark London Interbank Offered Rate (LIBOR) rates, as well as a flattening of the yield curve, pricing in the possibility of Fed rate cuts late in the year.... In February, we examined the state of the credit environment in the money markets, both as it pertained to relevant asset classes as well as regional differences. We noted that, in general, corporate and financial balance sheets were in good shape and economies were stable and prosperous. While in retrospect it does not seem adequate, we devoted a paragraph to the novel coronavirus and the 'great deal of uncertainty about both the spread of the disease, its management, and the ultimate economic impact.'"

To the top E-mail this article

Crane Data released its January Money Fund Portfolio Holdings Tuesday, and our most recent collection, with data as of Dec. 31, 2020, shows decreases in every category except Treasuries last month. Money market securities held by Taxable U.S. money funds (tracked by Crane Data) decreased by $88.0 billion to $4.623 trillion in December, after increasing $86.6 billion in November, but decreasing $148.0 billion in October. Treasury securities remained the largest portfolio segment, followed by Repo, then Agencies. CP remained fourth, ahead of CDs, Other/Time Deposits and VRDNs. Below, we review our latest Money Fund Portfolio Holdings statistics. (Visit our Content center to download, or contact us to request our latest Portfolio Holdings reports.)

To the top E-mail this article

Crane Data's latest monthly Money Fund Portfolio Holdings statistics will be sent out Tuesday, and we'll be writing our normal monthly update on the December 31 data for Wednesday's News. But we also published 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 Holding file listings to Money Fund Wisdom subscribers.) Our new N-MFP summary, with data as of Dec. 31, 2020, includes holdings information from 1,071 money funds (down two from last month), representing assets of $4.786 trillion (down $92 billion). Prime MMFs now total $910.2 billion, or 19.0% of the total, down from $963.0 billion a month ago. We review the new N-MFP data below.

To the top E-mail this article

Crane Data's latest Money Fund Market Share rankings show assets were flat overall and mixed among the largest U.S. money fund complexes in December. Money market fund assets decreased $6.1 billion, or -0.1%, last month to $4.730 trillion. Assets have fallen by $62.0 billion, or -1.3%, over the past 3 months, but they've increased by $779.1 billion, or 19.7%, over the past 12 months through Dec. 31, 2020. The biggest increases among the 25 largest managers last month were seen by Morgan Stanley, SSGA, Dreyfus, Goldman Sachs and JP Morgan, which grew assets by $15.7 billion, $14.6B, $11.2B, $5.2B and $3.7B, respectively. The largest declines in assets in December were seen by BlackRock, Wells Fargo, Vanguard, Federated Hermes and UBS, which decreased by $25.2 billion, $11.1B, $6.5B, $6.3B and $6.3B, 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 below, and we also look at money fund yields in December.

To the top E-mail this article

The January issue of our flagship Money Fund Intelligence newsletter, which was sent out to subscribers Friday morning, features the articles: "Highlights of '20: March Madness, Asset Surge, Rate Crash," which reviews one of the craziest years in money funds' 50-year history; "ICD Portal's Tory Hazard Keeps Focus on Clients, Tech," which profiles the leader of the largest independent MMF "portal"; and, "Top Money Funds of 2020; 12th Annual MFI Awards," which reviews the No. 1‐ranked funds based on 1‐year, 5‐year and 10‐year returns. We've also updated our Money Fund Wisdom database with December 31 statistics, and send out our MFI XLS spreadsheet Friday a.m. (MFI, MFI XLS and our Crane Index products are all available to subscribers via our Content center.) Our January Money Fund Portfolio Holdings are scheduled to ship on Tuesday, January 12, and our January Bond Fund Intelligence is scheduled to go out Friday, January 15.

To the top E-mail this article

In January 2016, money market mutual funds were in the midst of a series of dramatic changes ahead of October 2016's Money Fund Reforms, the biggest changes to money fund regulations since their introduction in October 1970. Five years ago, we ran the story, "Rolling w/Reform Changes II: Recap of '15 Announcements, '16 Plans," which reviewed a number of major changes among the largest managers that took place during 2015. As in the past year, exits from Prime MMFs and fund repositioning were notable trends. Today, we examine the Covid-19 driven changes and general fund actions over the past year, as we prepare for potential regulatory changes and more fund lineup shifts in the New Year. (See also our Dec. 17 News, "Top 10 Stories of 2020: Assets Skyrocket; Yields Plunge; Regs Coming?" Note: Readers may also review "Crane Data's News," "Link of the Day" and "Money Fund Intelligence Archives" for more stories from the past year, 5 years and decade-plus.)

To the top E-mail this article

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 Dec. 31, 2020) includes Holdings information from 92 money funds (up 23 funds from two weeks ago), which represent $2.593 trillion (up from $1.913 trillion) of the $4.711 trillion (55.0%) in total money fund assets tracked by Crane Data. (Our Weekly MFPH are e-mail only and aren't available on the website. We didn't publish last week due to the Holidays.)

To the top E-mail this article

A press release entitled, "John Tobin Appointed Chief Investment Officer of Dreyfus Cash Investment Strategies," tells us that, "Dreyfus Cash Investment Strategies (Dreyfus CIS), a BNY Mellon Investment Management firm with $248.8bn in assets under management, announced the appointment of John Tobin as Chief Investment Officer (CIO). John brings to this role deep and broad money market industry expertise, including first-hand knowledge of Dreyfus CIS, where he began his career 30 years ago. John joins from J.P. Morgan, where he was most recently Managing Director, Global Head of Liquidity Portfolio Management, a position he held since 2001."

To the top E-mail this article

Wells Fargo Asset Management, the 7th largest MMF manager with $210 billion, will merge its two "Prime" money market funds, we learned from a new Prospectus Supplement for the $1.5 billion Wells Fargo Cash Investment Money Market Fund. The filing tells us, "In November 2020, the Board of Trustees of Wells Fargo Funds Trust approved the merger of Wells Fargo Cash Investment Money Market Fund into [the $10.8 billion] Wells Fargo Heritage Money Market Fund, two funds within the same fund family.... The Board of the Target Fund believes that this merger will benefit current Target Fund shareholders. In the merger, the Target Fund will transfer all of its assets and liabilities to the Acquiring Fund in exchange for the same class of shares of the Acquiring Fund. The merger is expected to be a tax-free reorganization for U.S. federal income tax purposes. Immediately following the merger of your fund into the Acquiring Fund, you will hold shares of the Acquiring Fund with a dollar value equal to the dollar value of the Target Fund shares you previously held."

To the top E-mail this article

The Investment Company Institute (ICI) released its latest weekly "Money Market Fund Assets" report, as well as its monthly "Trends in Mutual Fund Investing" and "Month-End Portfolio Holdings of Taxable Money Funds" for November 2020 yesterday. The first release shows money fund assets falling in the latest week, their 18th decrease in the past 22 weeks. Assets have fallen $492 billion since May 20, when they were at a record $4.789 trillion (after rising $1.1 trillion in March and April 2020). ICI shows money fund assets up a still massive $665 billion, or 18.3%, year-to-date in 2020 (and over the past 52 weeks), with Inst MMFs up $510 billion (22.5%) and Retail MMFs up $156 billion (11.4%). Though 2020 saw a massive cash buildup due to the coronavirus shutdown, the percentage gain on the year likely will lag that of 2019's slightly -- up 18.3% this year vs. an increase of 19.2% last year. The dollar gain is bigger though -- up $665 billion vs. $584 billion increase in 2019 -- and the biggest since 2008's $685 billion. (Note: Happy New Year!)

To the top E-mail this article
Archives »