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Morgan Stanley will soon join DWS, BlackRock and SSGA in the "ESG" (environmental, social, governance) money market fund space. A recent Prospectus Supplement filing for the "Morgan Stanley Institutional Liquidity Funds" explains, "At a meeting held on September 24-25, 2019, the Board of Trustees of Morgan Stanley Institutional Liquidity Funds approved various changes to the Fund, including revising its name and modifying its principal investment strategies, each change effective October 31, 2019.... All references to 'Money Market Portfolio' in each Prospectus are hereby deleted and replaced with 'ESG Money Market Portfolio'." We review this latest filing, as well as some other news in the ESG MMF space, below.

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Crane Data's latest MFI International shows assets in "offshore" or European money market mutual funds rising in USD and GBP and inching lower in Euro over the past month through October 11. These U.S.-style funds, domiciled in Ireland or Luxemburg and denominated in US Dollars, Sterling and Euro, increased by $9.3 billion to $856.4 billion over the past month (9/11 through 10/11), and they're now up by $10.4 billion year-to-date. Offshore USD money funds are up $5.5 billion over 1 month and they're up $12.1 billion YTD. Euro funds are down E1.0 billion over a month, and YTD they're up E0.1 billion. GBP funds have risen by L4.1 billion through October 11, are they are up by L21.9 billion YTD. U.S. Dollar (USD) money funds (190) account for over half ($466.0 billion, or 54.4%) of our "European" money fund total, while Euro (EUR) money funds (88) total E99.1 billion (12.8%) and Pound Sterling (GBP) funds (123) total L231.3 billion (32.8%). We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers yesterday), below.

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The October issue of our Bond Fund Intelligence, which was sent out to subscribers Monday, features the lead story, "Worldwide Bond Fund Assets Jump in Q2; US, Brazil Up Big," which looks at the latest rankings of global bond fund markets and "Ultra-Shorts in Europe, Euro; Highlights from EMFS Dublin," which reviews comments on ultra-short bond funds at our recent European Money Fund Symposium. BFI also recaps the latest Bond Fund News and includes our Crane BFI Indexes, which show bond fund yields were mixed while assets continue flowing in September. 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.)

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Money fund assets rose for the sixth week in a row, the 9th week out of 10, and the 23rd week out of the past 25. ICI's latest "Money Market Fund Assets" report shows that MMF totals have increased by $422 billion, or 13.9%, year-to-date. Over the past 52 weeks, ICI's money fund asset series has increased by $582 billion, or 20.1%, with Retail MMFs rising by $247 billion (22.9%) and Inst MMFs rising by $335 billion (18.5%). We review ICI's assets, discuss our own Money Fund Intelligence Daily series, just broke over $3.8 trillion for the first time, and review a recent Wells Fargo MMFs commentary below.

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Crane Data released its October Money Fund Portfolio Holdings Wednesday, and our most recent collection of taxable money market securities, with data as of Sept. 30, 2019, shows a huge jump in Treasuries, an increase in Agencies and a big drop in Repo. Money market securities held by Taxable U.S. money funds (tracked by Crane Data) increased by $92.0 billion to $3.690 trillion last month, after increasing $93.0 billion in August, $102.1 billion in July and $18.7 billion in June. Repo continues to be the largest portfolio segment, followed by Treasury securities, which broke above the $1 trillion level for the first time ever, 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 the latest files, or contact us to see our latest Portfolio Holdings reports.)

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Crane Data's latest monthly Money Fund Portfolio Holdings statistics will be published Wednesday, Oct. 9, and we'll be writing our normal monthly update on the Sept. 30 data for Thursday's News. But we also generate a separate and broader Portfolio Holdings data set based on the SEC's Form N-MFP filings, and we posted these to the website yesterday. (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 Sept. 30, 2019, includes holdings information from 1,099 money funds, representing assets of $3.885 trillion (up from $3.798 trillion last month). We review the latest N-MFP data below.

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Crane Data's latest Money Fund Market Share rankings show assets were up again for the vast majority of U.S. money fund complexes in September. Money fund assets increased by $80.2 billion, or 2.1%, last month to $3.784 trillion. Assets have climbed by $241.8 billion, or 6.8%, over the past 3 months, and they've increased by $703.1 billion, or 22.8%, over the past 12 months through Sept. 30, 2019. The biggest increases among the 25 largest managers last month were seen by Vanguard, BlackRock, Fidelity, Federated, Dreyfus, Wells Fargo and SSGA, which increased assets by $16.2 billion, $13.9B, $10.7B, $8.9B, $8.5B, $6.1B and $6.0B, respectively. Declines in assets among the largest complexes in September were seen by Goldman Sachs, PNC and Morgan Stanley, which decreased by $6.9B, $3.7B and $2.7B. 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 September.

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The October issue of our flagship Money Fund Intelligence newsletter, which was sent out to subscribers Monday morning, features the articles: "Institutional Money Funds Now Driving Flows; Yields Sink," which reviews the surge in money fund assets starting back in April; "European MF Symposium in Ireland Focuses on Future," which excerpts from the Irish Funds and IMMFA EMFS Sessions; and, "Worldwide Assets Hit Record $6.2T: US Jumps, China Falls," which discusses asset growth in money fund markets outside the U.S. We've also updated our Money Fund Wisdom database with Sept. 30 statistics, and sent out our MFI XLS spreadsheet Monday a.m. (MFI, MFI XLS and our Crane Index products are all available to subscribers via our Content center.) Our September Money Fund Portfolio Holdings are scheduled to ship on Wednesday, Oct. 9, and our Oct. Bond Fund Intelligence is scheduled to go out Monday, Oct. 14.

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The Securities and Exchange Commission released its latest "Money Market Fund Statistics" summary yesterday (it was posted late this month), which shows that total money fund assets jumped again last month, rising by $76.3 billion in August to $3.767 trillion. It was the 14th straight month of gains for money funds overall. Prime MMFs increased $10.6 billion in August to close at $1.051 trillion, their highest level since July 2016, while Govt & Treasury funds rose by $66.0 billion to a record $2.575 trillion. Tax Exempt funds fell by $78 million to $140.8 billion. Yields fell again for Prime MMFs and Govt MMFs in August, Tax Exempt yields fell too. The SEC's Division of Investment Management summarizes monthly Form N-MFP data and includes asset totals and averages for yields, liquidity levels, WAMs, WALs, holdings, and other money market fund trends. (The SEC revised this report earlier this year to include more history and to split Prime into Prime Inst and Prime Retail and Muni into Muni Inst and Muni Retail.) We review their latest numbers below.

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A statement dated Sept. 27, 2019, entitled, "Joint Trade Association Letter on Cash and Money Market Funds as Initial Margin," on the ISDA, or the International Swaps and Derivatives Association, website tell us, "On August 1, 2019, ISDA sent a letter to the CFTC and US Prudential regulators, co-signed by Managed Funds Association ('MFA'), Securities Industry and Financial Markets Association's Asset Management Group ('SIFMA AMG'), Investment Company Institute ('ICI'), Institutional Money Market Funds Association ('IMMFA'), and Securities Industry and Financial Markets Association ('SIFMA'). The letter requests that US regulators: allow the use of a broader range of MMFs meeting the conditions set out above; and allow the use of comparable EU MMFs in cases where substituted compliance is available through the issuance of a comparability determination by the US Prudential Regulators."

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Today, we highlight another key session from last week's European Money Fund Symposium, which took place in Dublin, Ireland. The segment, "IMMFA Update: The State of MMFs in Europe," featured Institutional Money Market Funds Association Chair Kim Hochfeld (also an MD at Morgan Stanley I.M.) and new IMMFA Secretary General Veronica Iommi. The two discussed the transition to LVNAV money funds in Europe following MMF reforms, the current state and investor base of the funds and the evolving mission of the London-based money fund trade group. (Mark your calendars for next year's European MF Symposium, which is scheduled for Sept. 21-22, 2020, in Paris, France. Let us know too if you'd like to see the conference binder.)

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Last week, in the wake of the Fed's rate cut, three brokerage firms cut sweep rates, most -notably yield leader Fidelity, who lowered rates from 1.07% to 0.94%. This week, another four brokerage firms followed suit and dropped rates, meaning seven out of 11 firms have now lowered rates following the September Fed cut. Raymond James, Schwab and Wells Fargo cut rates across the board while Ameriprise lowered rates only on one of its tiers. Fin-tech firm Betterment also lowered rates again this week (from 2.21% to 2.11%), as did a number of the highest-yielding banks. Our Crane 100 Money Fund Index fell from 2.04% to 1.80% in the week through Friday, Sept. 27 (after falling 12 bps the prior week, which also included a spike up to 2.08%). We review our latest Brokerage Sweep Intelligence publication, and quote from a couple recent brokerage sweep stories, below.

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