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Federated Investors released its latest "10-K Annual Report" Friday, which discusses a number of theoretical risks to their business. Given Federated's huge role in the money market fund space, the document provides a glimpse into a number of issues impacting money market funds in general. We except from their update below. (See also our Jan. 28 News, "Federated Says Rates, Volatility, Deposit Beta Driving Money Fund Flows," which quotes from Federated's most recent quarterly earnings call.)

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ICI's latest "Money Market Fund Assets" report shows that assets declined after rising for 14 of the previous 16 weeks, though Prime assets continued to increase. ICI's weekly series shows Retail MMFs added $6.0 billion, while Institutional MMFs had outflows of about $13.9 billion. Total Government MMF assets, including Treasury funds, stood at $2.311 trillion (75.2% of all money funds), while Total Prime MMFs reached $622.1 billion (20.2%). Tax Exempt MMFs totaled $138.8 billion, or 4.5%. We review the latest weekly assets below, and we also excerpt from Fidelity Investments' 2018 Shareholder Update, below.

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The SEC released it latest quarterly "Private Funds Statistics" report recently, which summarizes Form PF reporting and includes some data on "Liquidity Funds." The publication shows that overall Liquidity fund assets jumped in the latest reported quarter to $614 billion. A previous press release, entitled, "SEC Staff Supplements Quarterly Private Funds Statistics" tells us, "The U.S. Securities and Exchange Commission staff ... published a suite of new data and analyses of private fund statistics and trends. The Private Funds Statistics ... offers investors and other market participants valuable insights by aggregating data reported by private fund advisers on Form ADV and Form PF. New analyses include ... characteristics of private liquidity funds." We review the most recent SEC report, as well as our Weekly Money Fund Portfolio Holdings, below.

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The Securities and Exchange Commission released its latest "Money Market Fund Statistics" summary, now back on track with its scheduled releases following the temporary government shutdown. It shows that total money fund assets rose by $31.4 billion in January to $3.329 trillion. Prime MMFs reversed December's asset declines with an increase of $50.7 billion in January to close at $814.9 billion, while Govt & Treasury funds dropped by $15.5 billion to $2.369 trillion. Tax Exempt funds also fell by $3.9 billion to $145.8 billion. Yields rose for Prime and Government funds, but slipped for Tax Exempt MMFs in January. 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. We review the latest numbers below.

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This month, MFI interviews Charles Schwab Investment Management CEO Marie Chandoha, who will be stepping down at the end of March 2019. We wanted to ask Chandoha to look back at her tenure at Schwab, which included the extended post-crisis stretch of zero yields, and to get some parting words of wisdom. She tells us about her "crash course" in cash, the struggle against more onerous money fund reforms and a number of other issues. Our discussion follows. (Note: The following is reprinted from the February issue of Money Fund Intelligence, which was published on Feb. 7. Contact us at info@cranedata.com to request the full issue.)

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Crane Data's latest MFI International shows total assets in "offshore" money market mutual funds, U.S.-style funds domiciled in Ireland or Luxemburg and denominated in USD, Euro and GBP (sterling), flat year-to-date, though Euro MMFs are seeing declines. Through 2/13/19, overall MFII assets are down $13.0 billion to $833 billion. (They rose $15 billion in 2018.) Offshore USD money funds are down $1.8 billion YTD (they rose $29B last year). Euro funds are seemingly still feeling the pain of negative rates and pending European MMF reforms set to take final effect next month; they're down E8.7 billion YTD (following 2 flat years). GBP funds are up, however, by L948 million. U.S. Dollar (USD) money funds (175) account for over half ($452.2 billion, or 54.3%) of this "European" money fund total, while Euro (EUR) money funds (102) total E90.3 billion (10.8%) and Pound Sterling (GBP) funds (104) total L210.4 billion (25.3%). We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings below.

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The February issue of our Bond Fund Intelligence, which was sent out to subscribers Thursday morning, features the lead story, "Crane, JPMAM's Junker on Ultrashort BFs at University," which features comments from our recent Money Fund University on ultra-shorts, and the profile, "SEI Investments' Simko Talks About Total Return," our latest Portfolio Manager interview. BFI also recaps the latest Bond Fund News and includes our Crane BFI Indexes, which show lower bond fund yields, but higher returns in January. 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. Also, register soon for our 3rd annual Bond Fund Symposium, March 25-26, 2019 in Philadelphia.)

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Early last week, we provided an overview of State Street Global Advisors' "2019 Global Cash Outlook," including a brief overview of the segment entitled, "The Future is Coming." (See our Feb. 4 News, "SSGA Discusses ESG MMF Challenges, Tech, AI.") Below, we look again at this update, which discusses the possibility of 24-hour trading in money market mutual funds, and we also cite a press release from the OFR on Repo and a WSJ article on SOFR and LIBOR.

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Crane Data released its February Money Fund Portfolio Holdings Monday, and our most recent collection of taxable money market securities, with data as of Jan. 31, 2019, shows big increases in Repurchase Agreements, Certificates of Deposit, Commercial Paper and Other (mainly Time Deposits), and a big drop in Treasury holdings. Money market securities held by Taxable U.S. money funds (tracked by Crane Data) increased by $4.2 billion to $3.128 trillion last month, after increasing by $98.0 billion in December, $41.7 billion in November and $61.0 billion in October. Repo continued to be the largest portfolio segment, remaining above the $1.0 trillion mark, followed by Treasury securities, 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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Last week, our February Money Fund Intelligence newsletter featured the article, "Green Money Funds Become a Thing, But Big Issues Remain," which discussed the nascent segment of ESG money funds. (See our Feb. 7 News, "Feb. MFI: Green Money Funds a Thing; Schwab's Chandoha; MFU Recap.") However, DWS took issue with our statement that "To date, Crane Data sees almost no difference between the portfolio holdings of the DWS fund and normal Prime MMFs," so we wanted to get their response on the record and to take another look at the actual portfolio holdings and guidelines. (On second glance, there are clear differences.) Barron's also comments on the trend (both in money funds and in ultra-short bonds) in this weekend's article, "Earning Income With Socially Responsible ETFs and Mutual Funds." We review these below, and we also give an update on our latest Form N-MFP Portfolio Holdings data.

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Crane Data's latest Money Fund Market Share rankings show assets were higher again for the majority of U.S. money fund complexes in January. Money fund assets rose by $13.8 billion, or 0.4%, last month to $3.226 trillion, and assets have climbed by $135.0 billion, or 4.4%, over the past 3 months. They have increased by $236.2 billion, or 7.9%, over the past 12 months through Jan. 31, 2019. The biggest increases among the 25 largest managers last month were seen by SSgA, Schwab, Dreyfus, and Northern, which increased assets by $5.9 billion, $5.7B, $4.48B, and $3.4B, respectively. We review the latest market share totals below, and we also look at money fund yields in January.

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The February issue of our flagship Money Fund Intelligence newsletter, which was sent out to subscribers Thursday morning, features the articles: "Green Money Funds Become a Thing, But Big Issues Remain," which looks at BlackRock's pending LEAF launch and issues involving ESG money funds; "Schwab's Marie Chandoha Reflects; Preserving Retail," a Q&A featuring the CEO of Charles Schwab Investment Management; and, "MF University '19 Highlights Asset Recovery, Rising Rates," which reviews our recent "basic training" event in Stamford. We've also updated our Money Fund Wisdom database with Jan. 31 statistics, and sent out our MFI XLS spreadsheet Thursday a.m. (MFI, MFI XLS and our Crane Index products are all available to subscribers via our Content center.) Our February Money Fund Portfolio Holdings are scheduled to ship on Monday, February 11, and our February Bond Fund Intelligence is scheduled to go out Thursday, February 14.

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