Nov 20

 

Crane Data is making plans and preparing the agenda for our seventh annual ultra-​short bond fund event, Bond Fund Symposium, which will take place March 25-​26, 2024 at the Loews Philadelphia Hotel. Crane'​s Bond Fund Symposium offers a concentrated and affordable educational experience, as well as an excellent networking venue, for bond fund and fixed-​income professionals. Registrations are now being accepted ($​1,​000) and sponsorship opportunities are available. We review the preliminary agenda and details below, and we also give the latest update on our upcoming "basic training" show, Money Fund University, which will be held next month in Jersey City, Dec. 18-​19. (​We'​ll also be hosting our Crane Data Holiday Party alongside MFU, so please join us Monday, Dec. 18 from 5:​00-​7:​30pm at the Westin Jeresey City.

Bond Fund Symposium'​s Day One (​3/​25) morning agenda includes: Keynote: State of the Bond Fund Marketplace with Shelly Antoniewicz of Investment Co. Institute and Peter Crane of Crane Data; Ultra-​Shorts: Staying Positive, Conservative with Teresa Ho of J.​P. Morgan Securities, Richard Mejzak of BlackRock and Julian Potenza of Fidelity Investments; and ETF & Near-​Cash ETF Trends, with Brian McMullen of Invesco and James Palmieri of State Street Global Advisors. (Note: The agenda is still a work in progress, so let us know if you'​re interested in speaking or have any requests.)

The Day One afternoon agenda includes: Senior Portfolio Manager Perspectives with Dave Martucci of J.​P. Morgan A.​M., Dave Rothweiler of UBS Asset Management and Jerome Schneider of PIMCO; Bond Index Funds & Longer-​Term BF Issues with Matthew Brill of Invesco (​and an additional speaker TBD); Money Funds & Conservative Ultra-​Shorts with Peter Crane, Kerry Pope of Fidelity Investments and Dan LaRocco of Northern Trust A.​M.; and, Bond Market Strategists: Rates & Risks featuring Jay Barry of JPM Securities, Michael Cloherty of UBS and Ira Jersey of Bloomberg Intelligence. Monday will close with a reception sponsored by Northern Trust.

Day Two'​s agenda includes: Major Issues in Fixed-​Income Investing with George Bory of Allspring Global (​and an additional speaker); Regulatory Update: Bond Fund Issues ‘​24 with Aaron Withrow of Dechert LLP; Ultra-​Shorts, LGIPs & Bond Fund Ratings with Peter Gargiulo of Fitch Ratings and Michael Masih of S&​P Global Ratings; European & Sustainable Bond Fund Update with David Callahan of Lombard Odier I.​M..

Portfolio managers, analysts, investors, issuers, service providers, and anyone interested in expanding their knowledge of bond funds and fixed-​income investing will benefit from our comprehensive program. A block of rooms has been reserved at the Loews Philadelphia. We'​d like to thank our past sponsors and exhibitors -- Wells Fargo Securities, Fitch Ratings, Fidelity Investments, J.​P. Morgan Asset Management, Allspring Global, S&​P Global Ratings, StoneX, Invesco, BofA Securities, Northern Trust, Bloomberg Intelligence, Goldman Sachs, Federated, Payden & Rygel, PIMCO and Dechert -- for their support. (​We'​d love to get some new ones!) E-​mail us for more details.

Also, our 13th Annual Crane'​s Money Fund University will be held December 18-​19, 2023 at The Westin Jersey City Newport. Crane'​s Money Fund University covers the history of money funds, interest rates, regulations (​Rule 2a-​7), ratings, rankings, money market instruments such as commercial paper, CDs and repo, and portfolio construction and credit analysis. We also include segments on offshore money funds and ultra-​short bond funds. (Note Too: Crane Data is hosting its Holiday cocktail party during MFU on Dec. 18 from 5-​7:​30pm, so please join us in Jersey City at The Westin Jersey City Newport!)

New portfolio managers, analysts, investors, issuers, service providers, and anyone interested in expanding their knowledge of "​cash" investing should benefit from our comprehensive program. Even experienced professionals may enjoy a refresher course and the opportunity to interact with peers in an informal setting. Attendee registration for Crane'​s Money Fund University is just $​750, exhibit space is $​2,​000, and sponsorship opportunities are $​3K (​Bronze), $​4K (​Silver), and $​5K (​Gold). A block of rooms has been reserved at the The Westin Jersey City Newport.

Money Fund University'​s comprehensive program is good for anyone -- beginners and experienced professionals looking for a refresher -- alike. The latest MFU agenda is available online and we are still accepting registrations. (​We'​re also willing to "​comp" tickets for large Crane Data or sponsor clients, so let us know if you'​re interested.)

We'​ll also soon be gearing up for our next "​big show," Money Fund Symposium, which will be held June 12-​14, 2024, at The Westin Convention Center in Pittsburgh, Pa. (​Let us know if you'​d like details on speaking or sponsoring.) Also, mark your calendars for next year'​s European Money Fund Symposium, which will be held Sept. 19-​20, 2024, in London. Watch for details on these shows in coming weeks and months.

Nov 10

 

Crane Data'​s November Money Fund Portfolio Holdings, with data as of Oct. 31, 2023, show that Treasury holdings surged in October while Repo fell. Money market securities held by Taxable U.​S. money funds (​tracked by Crane Data) decreased by $​57.​9 billion to $​5.​917 trillion, after increasing $​56.​1 in September, $​106.​7 billion in August, $​78.​3 billion in July and $​46.​1 billion in June. Repo fell again, dropping $​329.​2 billion, but it remains the largest portfolio segment. Treasuries jumped by over $​175 billion, ranking in the No. 2 spot. The U.​S. Treasury surpassed the Federal Reserve Bank of New York as the largest Issuer to MMFs two months prior, in October that trend continued as the U.​S. Treasury jumped to $​1.​929 trillion vs. the Fed RRP'​s $​1.​077 trillion (​down $​400.​8 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.

Among taxable money funds, Repurchase Agreements (​repo) decreased $​329.​2 billion (-​11.​3%) to $​2.​592 trillion, or 43.​8% of holdings, in October, after decreasing $​84.​0 billion in September, $​96.​8 billion in August, $​99.​4 billion in July and $​146.​4 billion in June. Repo increased $​111.​8 billion in May and $​33.​1 billion in April. Treasury securities rose $​178.​1 billion (​10.​2%) to $​1.​929 trillion, or 32.​6% of holdings, after increasing $​164.​9 billion in September, $​163.​3 billion in August, $​185.​5 billion in July and $​355.​7 billion in June. They decreased $​116.​9 billion in May and $​32.​3 billion in April. Government Agency Debt was up $​36.​1 billion, or 5.​4%, to $​711.​6 billion, or 12.​0% of holdings. Agencies decreased $​8.​3 billion in September, increased $​16.​4 billion in August, but decreased $​66.​5 billion in July and $​119.​3 billion in June. They increased $​58.​8 billion in May and $​18.​5 billion in April. Repo, Treasuries and Agency holdings now total $​5.​232 trillion, representing a massive 88.​4% of all taxable holdings.

Money fund holdings of CP, CDs and Time Deposits all increased in October. Commercial Paper (​CP) increased $​17.​6 billion (​6.​2%) to $​300.​8 billion, or 5.​1% of holdings. CP holdings increased $​3.​0 billion in September, $​4.​8 billion in August, $​22.​0 billion in July, decreased $​2.​3 billion in June and increased $​6.​5 billion in May. Certificates of Deposit (​CDs) increased $​11.​2 billion (​5.​5%) to $​214.​2 billion, or 3.​6% of taxable assets. CDs increased $​0.​5 billion in September, $​14.​4 billion in August, $​7.​2 billion in July, $​7.​9 billion in June and $​2.​1 billion in May. Other holdings, primarily Time Deposits, increased $​28.​4 billion (​21.​7%) to $​159.​2 billion, or 2.​7% of holdings, after decreasing $​20.​4 billion in September, increasing $​4.​3 billion in August and $​29.​3 billion in July. TDs decreased $​49.​8 billion in June and increased $​30.​4 billion in May. VRDNs fell to $​10.​5 billion, or 0.​2% of assets. (​Note: This total is VRDNs for taxable funds only. We will post our Tax Exempt MMF holdings separately Thursday around noon.)

Prime money fund assets tracked by Crane Data rose to $​1.​264 trillion, or 21.​4% of taxable money funds' $​5.​917 trillion total. Among Prime money funds, CDs represent 16.​9% (​up from 16.​3% a month ago), while Commercial Paper accounted for 23.​8% (​up from 22.​7% in September). The CP totals are comprised of: Financial Company CP, which makes up 15.​4% of total holdings, Asset-​Backed CP, which accounts for 4.​7%, and Non-​Financial Company CP, which makes up 3.​7%. Prime funds also hold 4.​6% in US Govt Agency Debt, 8.​0% in US Treasury Debt, 21.​4% in US Treasury Repo, 0.​4% in Other Instruments, 10.​4% in Non-​Negotiable Time Deposits, 5.​4% in Other Repo, 6.​9% in US Government Agency Repo and 0.​6% in VRDNs.

Government money fund portfolios totaled $​3.​065 trillion (​51.​8% of all MMF assets), down from $​3.​126 trillion in September, while Treasury money fund assets totaled another $​1.​587 trillion (​26.​8%), down from $​1.​605 trillion the prior month. Government money fund portfolios were made up of 21.​3% US Govt Agency Debt, 18.​1% US Government Agency Repo, 26.​1% US Treasury Debt, 34.​4% in US Treasury Repo, 0.​0% in Other Instruments. Treasury money funds were comprised of 64.​8% US Treasury Debt and 35.​2% in US Treasury Repo. Government and Treasury funds combined now total $​4.​652 trillion, or 78.​6% of all taxable money fund assets.

European-​affiliated holdings (​including repo) increased by $​101.​8 billion in October to $​692.​7 billion; their share of holdings rose to 11.​7% from last month'​s 9.​9%. Eurozone-​affiliated holdings increased to $​468.​5 billion from last month'​s $​417.​0 billion; they account for 7.​9% of overall taxable money fund holdings. Asia & Pacific related holdings rose to $​270.​3 billion (​4.​6% of the total) from last month'​s $​261.​6 billion. Americas related holdings fell to $​4.​946 trillion from last month'​s $​5.​113 trillion, and now represent 83.​6% of holdings.

The overall taxable fund Repo totals were made up of: US Treasury Repurchase Agreements (​down $​329.​5 billion, or -​14.​9%, to $​1.​882 trillion, or 31.​8% of assets); US Government Agency Repurchase Agreements (​down $​0.​1 billion, or 0.​0%, to $​641.​2 billion, or 10.​8% of total holdings), and Other Repurchase Agreements (​up $​0.​3 billion, or 0.​4%, from last month to $​68.​3 billion, or 1.​2% of holdings). The Commercial Paper totals were comprised of Financial Company Commercial Paper (​up $​7.​5 billion to $​194.​3 billion, or 3.​3% of assets), Asset Backed Commercial Paper (​up $​1.​2 billion to $​60.​0 billion, or 1.​0%), and Non-​Financial Company Commercial Paper (​up $​8.​9 billion to $​46.​5 billion, or 0.​8%).

The 20 largest Issuers to taxable money market funds as of October 31, 2023, include: the US Treasury ($​1.​929T, 32.​6%), the Federal Reserve Bank of New York ($​1.​077 trillion, or 18.​2%), Federal Home Loan Bank ($​585.​4B, 9.​9%), Fixed Income Clearing Corp ($​368.​4B, 6.​2%), RBC ($​138.​3B, 2.​3%), Citi ($​113.​9B, 1.​9%), Bank of America ($​112.​2B, 1.​9%), JP Morgan ($​110.​7B, 1.​9%), Federal Farm Credit Bank ($​107.​0B, 1.​8%), BNP Paribas ($​101.​3B, 1.​7%), Barclays PLC ($​86.​3B, 1.​5%), Credit Agricole ($​65.​6B, 1.​1%), Goldman Sachs ($​63.​2B, 1.​1%), Wells Fargo ($​59.​0B, 1.​0%), Mitsubishi UFJ Financial Group Inc ($​58.​9B, 1.​0%), Sumitomo Mitsui Banking Corp ($​50.​3B, 0.​9%), Mizuho Corporate Bank Ltd ($​46.​7B, 0.​8%), Bank of Montreal ($​45.​2B, 0.​8%), ING Bank ($​42.​6B, 0.​7%), and Societe Generale ($​41.​7B, 0.​7%).

In the repo space, the 10 largest Repo counterparties (​dealers) with the amount of repo outstanding and market share (​among the money funds we track) include: Federal Reserve Bank of New York ($​1.​077T, 41.​6%), Fixed Income Clearing Corp ($​368.​4B, 14.​2%), RBC ($​114.​8B, 4.​4%), JP Morgan ($​100.​8B, 3.​9%), Citi ($​97.​9B, 3.​8%), Bank of America ($​88.​8B, 3.​4%), BNP Paribas ($​88.​0B, 3.​4%), Barclays PLC ($​68.​1B, 2.​6%), Goldman Sachs ($​62.​1B, 2.​4%) and Wells Fargo ($​48.​5B, 1.​9%). The largest users of the $​1.​077 trillion in Fed RRP include: Vanguard Federal Money Mkt Fund ($​76.​8B), JPMorgan US Govt MM ($​74.​5B), Fidelity Govt Money Market ($​56.​0B), Schwab Treasury Oblig MF ($​45.​4B), Fidelity Govt Cash Reserves ($​39.​8B), Fidelity Inv MM: MM Port ($​38.​7B), Fidelity Cash Central Fund ($​37.​0B), Fidelity Inv MM: Govt Port ($​36.​3B), Northern Instit Treasury MMkt ($​34.​0B) and Fidelity Money Market ($​33.​3B).

The 10 largest issuers of "​credit" -- CDs, CP and Other securities (​including Time Deposits and Notes) combined -- include: Mizuho Corporate Bank Ltd ($​32.​8B, 5.​5%), RBC ($​23.​5B, 3.​9%), Bank of America ($​23.​5B, 3.​9%), Credit Agricole ($​23.​4B, 3.​9%), Bank of Montreal ($​21.​4B, 3.​6%), Toronto-​Dominion Bank ($​20.​4B, 3.​4%), Mitsubishi UFJ Financial Group Inc ($​19.​2B, 3.​2%), Australia & New Zealand Banking Group Ltd ($​18.​4B, 3.​1%), Barclays PLC ($​18.​2B, 3.​1%) and Skandinaviska Enskilda Banken AB ($​17.​7B, 3.​0%).

The 10 largest CD issuers include: Bank of America ($​16.​5B, 7.​7%), Sumitomo Mitsui Banking Corp ($​14.​7B, 6.​9%), Toronto-​Dominion Bank ($​14.​3B, 6.​7%), Mitsubishi UFJ Trust and Banking Corporation ($​14.​2B, 6.​6%), Credit Agricole ($​12.​9B, 6.​0%), Mizuho Corporate Bank Ltd ($​11.​5B, 5.​4%), Mitsubishi UFJ Financial Group Inc ($​11.​5B, 5.​4%), Wells Fargo ($​10.​5B, 4.​9%), Sumitomo Mitsui Trust Bank ($​9.​7B, 4.​5%), and Citi ($​9.​1B, 4.​2%).

The 10 largest CP issuers (​we include affiliated ABCP programs) include: Bank of America ($​16.​5B, 7.​7%), Sumitomo Mitsui Banking Corp ($​14.​7B, 6.​9%), Toronto-​Dominion Bank ($​14.​3B, 6.​7%), Mitsubishi UFJ Trust and Banking Corporation ($​14.​2B, 6.​6%), Credit Agricole ($​12.​9B, 6.​0%), Mizuho Corporate Bank Ltd ($​11.​5B, 5.​4%), Mitsubishi UFJ Financial Group Inc ($​11.​5B, 5.​4%), Wells Fargo ($​10.​5B, 4.​9%), Sumitomo Mitsui Trust Bank ($​9.​7B, 4.​5%) and Citi ($​9.​1B, 4.​2%).

The largest increases among Issuers include: US Treasury (​up $​178.​5B to $​1.​929T), Federal Home Loan Bank (​up $​37.​0B to $​585.​4B), Credit Agricole (​up $​27.​0B to $​65.​6B), Barclays PLC (​up $​23.​9B to $​86.​3B), Citi (​up $​22.​6B to $​113.​9B), Bank of America (​up $​14.​3B to $​112.​2B), Deutsche Bank AG (​up $​9.​1B to $​29.​3B), JP Morgan (​up $​8.​9B to $​110.​7B), Erste Group Bank AG (​up $​8.​3B to $​9.​2B) and Bank of Montreal (​up $​7.​8B to $​45.​2B).

The largest decreases among Issuers of money market securities (​including Repo) in October were shown by: Federal Reserve Bank of New York (​down $​400.​8B to $​1.​077T), Goldman Sachs (​down $​29.​8B to $​63.​2B), RBC (​down $​11.​1B to $​138.​3B), Societe Generale (​down $​8.​5B to $​41.​7B), Sumitomo Mitsui Trust Bank (​down $​3.​3B to $​20.​7B), Sumitomo Mitsui Banking Corp (​down $​2.​8B to $​50.​3B), First Abu Dhabi Bank (​down $​1.​5B to $​7.​6B), Nomura (​down $​1.​5B to $​33.​0B), Credit Mutuel (​down $​1.​5B to $​10.​0B) and Federal Farm Credit Bank (​down $​1.​2B to $​107.​0B).

The United States remained the largest segment of country-​affiliations; it represents 78.​4% of holdings, or $​4.​638 trillion. Canada (​5.​2%, $​307.​9B) was in second place, while France (​4.​5%, $​265.​2B) was No. 3. Japan (​4.​2%, $​247.​1B) occupied fourth place. The United Kingdom (​2.​6%, $​152.​3B) remained in fifth place. Netherlands (​1.​2%, $​72.​6B) was in sixth place, followed by Germany (​1.​1%, $​66.​3B), Sweden (​0.​9%, $​50.​5B), Australia (​0.​7%, $​38.​5B), and Spain (​0.​4%, $​20.​7B). (​Note: Crane Data attributes Treasury and Government repo to the dealer'​s parent country of origin, though money funds themselves "​look-​through" and consider these U.​S. government securities. All money market securities must be U.​S. dollar-​denominated.)

As of Oct. 31, 2023, Taxable money funds held 54.​4% (​down from 58.​1%) of their assets in securities maturing Overnight, and another 9.​9% maturing in 2-​7 days (​unchanged). Thus, 64.​3% in total matures in 1-​7 days. Another 11.​2% matures in 8-​30 days, while 9.​0% matures in 31-​60 days. Note that over three-​quarters, or 84.​4% of securities, mature in 60 days or less, the dividing line for use of amortized cost accounting under SEC regulations. The next bucket, 61-​90 days, holds 4.​3% of taxable securities, while 7.​7% matures in 91-​180 days, and just 3.​6% matures beyond 181 days. (​Visit our Content center to download, or contact us to request our latest Portfolio Holdings reports.)

Oct 19

 

Crane Data is preparing for its next live event, our "​basic training" Money Fund University, which will take place December 18-​19, 2023 at The Westin Jersey City Newport in Jersey City, New Jersey. Crane'​s Money Fund University is designed for those new to the money market fund industry or those in need of a concentrated refresher on the basics, but this year'​s event will feature a slightly higher level "Master'​s in Money Markets" agenda. The event also focuses on hot topics like money market fund regulations, money fund alternatives, offshore markets, and other recent industry trends. Our educational conference features a faculty of the money fund industry'​s top lawyers, strategists, and portfolio managers, and the Jersey City show will include a Holiday cocktail party and a free training session for Crane Data clients. We review the MFU agenda and some other upcoming conferences, including next week'​s AFP in San Diego, below. (We hope to see many of you at the AFP 2023 corporate treasury show in San Diego, Oct. 22-​24! Visit us at Booth #​749.)

Money Fund University offers a 2-​day crash course on money market mutual funds, educating attendees on the history of money funds, the Fed, interest rates, ratings, rankings, and money market instruments such as commercial paper, Treasury bills, CDs and repo. We also cover portfolio construction and credit analysis. Registrations are $​750 are still being taken, and the latest agenda is available here. (E-​mail us to request the latest brochure, and make your hotel reservations soon!)

The morning of Day One (​12/​18/​23) of the 2023 MFU agenda includes: History & Current State of Money Market Mutual Funds with Peter Crane of Crane Data; The Federal Reserve & Money Markets with Katie Craig of BofA; Ratings, Monitoring & Performance with Steven Johnson of Fitch Ratings and Marissa Zuccaro of S&​P Global; and, Instruments of the Money Markets Intro with Pankaj Vohra of J.​P. Morgan Securities.

Day One'​s afternoon agenda includes: Repurchase Agreements with James Bartle of J.​P. Morgan Secs; Treasuries & Govt Agencies with Sue Hill of Federated Hermes and Matt Lachance of TD Securities; Commercial Paper & ABCP with Rob Crowe of Citi Global Markets; CDs, TDs & Bank Debt with Vanessa McMichael of Wells Fargo Securities; and, Credit Analysis & Portfolio Management with Keith Lawler of Dreyfus. (Note: Crane Data will host its Holiday Party alongside MFU. Clients and friends are welcome to join us at the Westin Jersey City Newport on Monday, Dec. 18 from 5-​7:​30pm!)

Day Two'​s (​12/​19) agenda includes: Money Fund Regulations: 2a-​7 Basics & History with Brenden Carroll of Dechert LLP and Jamie Gershkow of Stradley Ronon; Money Fund Regulations: Latest 2a-​7 Changes with Jon-​Luc Dupuy of K&​L Gates LLP and Brenden Carroll of Dechert LLP; European MMFs & Ultra-​Short Funds with John Hunt of Sullivan & Worcester LLP and Peter Crane of Crane Data; and Money Fund Data & Wisdom Demo/​Training with Peter Crane. The conference ends with its annual MFU "​Graduation" ceremony (​where diplomas are given to attendees).

New portfolio managers, analysts, investors, issuers, service providers, and anyone interested in expanding their knowledge of "​cash" investing should benefit from our comprehensive program. Even experienced professionals may enjoy a refresher course and the opportunity to interact with peers in an informal setting. Attendee registration for Crane'​s Money Fund University is just $​750, exhibit space is $​2,​000, and sponsorship opportunities are $​3K (​Bronze), $​4K (​Silver), and $​5K (​Gold). A block of rooms has been reserved at The Westin Jersey City Newport. (​Please reserve before 11/​17.)

We'​d like to thank our current MFU sponsors -- BlackRock, Fitch Ratings, Silicon Valley Bank, TD Securities, Capitolis, Dechert LLP, Northern Trust and J.​P. Morgan Asset Management -- for their support, and we look forward to seeing you in Jersey City in December! E-​mail Pete Crane (​pete@​cranedata.​com) for the latest brochure or visit www.​moneyfunduniversity.​com to register or for more details.

Crane Data is also preparing the preliminary agenda for our next Bond Fund Symposium, which will be held March 25-​26, 2024, at the Loews Philadelphia Hotel in Philadelphia, Pa. Our Bond Fund Symposium offers a concentrated program for fixed-​income managers and dealers with a focus on the ultra-​short segment. Registration for Bond Fund Symposium is $​1000; exhibit space is $​2,​000 (​includes 2 tickets); and sponsorship opportunities are $​3K, $​4K, $​5K, and $​6K. Our mission is to deliver the best possible conference content at a reasonable price to bond fund professionals and investors.

We'​ll soon be making plans for our next "​big show," Money Fund Symposium, which will be held June 12-​14, 2024, at The Westin in Pittsburgh. (​Let us know if you'​d like details on speaking or sponsoring.) Also, mark your calendars for next year'​s European Money Fund Symposium, which will be held Sept. 19-​20, 2024, in London, England. Watch for details on these shows in coming weeks and months.

Also, money market mutual fund distributors and cash managers will be travelling to San Diego, Calif. for AFP 2023, the Association for Financial Professionals' big annual gathering of corporate treasurers, which takes place October 22-​24. AFP is the largest gathering of corporate investors in the country, attracting roughly 5,​000 treasury management professionals, as well as a host of large banks and institutional money fund managers.

At AFP, sessions involving money funds and/​or cash investing include: "An Inside Look Into Liquidity Investing Through Economic Uncertainty And Volatile Markets" with Patrick O'​Callaghan of Goldman Sachs, Nicole Smith of Visa and Michael Nourafshan of Block; "The Hidden Power Of Cash: Meeting Yield Targets While Elevating DEI Efforts" with Cnote'​s Catherine Berman, Orange County Credit Union'​s Amber Cisneros and Edwards Lifesciences' Justin Skaria; "How Corporate Treasurers Can Invest With A Social Purpose" with Dolby Laboratories'​s Richard Lucero, Comcast'​s Richard Sculli, Opportunity Finance Network'​s Beth Lipson and Morgan Stanley'​s Scott Wachs; "Qualtrics' Approach To The Delicate Dance Between Liquidity, Risk And Investment Return" with Amanda Schmidt and Ben Amundsen of Qualtrics; and, "Commercial Paper: Fool'​s Gold Or Strategic Funding?" with Kalyn Matthews of Duke Energy Corporation, David Pellerin of Circle K and Garret Sloan of Wells Fargo Securities.

Finally, thank you once more to those who supported last month'​s European Money Fund Symposium, which took place Sept. 25-​26 in Paris, France! Let us know if you'​d like to see the binder from this show (​available to clients only) or if you'​d like more details on any of our events. We hope to see you in San Diego Monday, in Jersey City in December, in Philadelphia in March, in Pittsburgh in June or in London in September 2024!

Oct 06

 

The October issue of our flagship Money Fund Intelligence newsletter, which was sent out to subscribers Friday morning, features the articles: "Money Funds Still Eating Bank Deposits' Lunch; Trillion Shift," which reviews the dramatic move in assets into MMFs; "Cash Spirits High at European MF Symposium in Edinburgh," which quotes sessions from our recent offshore conference; and, "Worldwide MMFs Jump in Q2'​23, Just Shy of $​10 Trillion," which reviews the shifts in MMF assets around the world. We also sent out our MFI XLS spreadsheet Friday a.​m., and we'​ve updated our Money Fund Wisdom database with 9/​30/​23 data. Our October Money Fund Portfolio Holdings are scheduled to ship on Wednesday, October 11, and our October Bond Fund Intelligence is scheduled to go out on Monday, October 16. (Note: Crane Data and U.​S. money market funds will be closed for the Columbus Day Holiday Monday, Oct. 9.)

MFI'​s "Money Funds Still Eating" article says, "Money market mutual fund assets continued to surge higher in September, and bank deposits continued to decline. MMFs hit a record $​6.​095 trillion last month (​and broke the $​6.​1 trillion level on 10/​3), while deposits declined to $​17.​3 trillion (​as of 9/​20/​23). Year to date, MMFs have increased by $​922.​5 billion, or 18.​3%, and over the past year they'​ve jumped by $​1.​049 trillion, or 21.​3%. (​Bank deposits have fallen by $​701.​3 billion since 8/​22.)

It continues, "Barron'​s writes, 'Bank Deposits Plunged in the Past Year. Schwab Took the Biggest Hit.' They comment, 'Banks have had an unusually rough year. Just how bad is evident in a new report from S&​P Global Market Intelligence. Total deposits across U.​S. banks fell 4.​8%, or $​872 billion, to $​17.​27 trillion as of June 30, according to S&​P Global. The drop was the first in a data set that dates back to 1994. Among the top 15 deposit holders, Charles Schwab reported the largest year-​over-​year decrease in deposits of 31.​1% to $​304.​79 billion, according to S&​P Global which attributed the decline mostly to outflows from brokerage accounts.'"

We write in our Cash Spirits High article, "Crane Data recently hosted its 9th annual European Money Fund Symposium in Edinburgh, Scotland, which featured two days of discussions on offshore money funds denominated in USD, EUR and GBP. Veronica Iommi, Secretary General of IMMFA, the Institutional Money Market Funds Association, presented on 'The State of MMFs in Europe,' and told the audience, '​Let'​s take a look at the current money market fund landscape.... Total money market fund assets under management in Europe at the end of June were €​1.​5 trillion euro equivalent, according to the ECB.... The industry is growing very strongly. In fact, it'​s almost doubled in the last 10 years.'"

It continues: "​She explains, 'Approximately 40% ... of the market is predominantly VNAV funds, and these are mostly euro-​denominated French, Standard funds. The other 60% consist of IMMFA funds (​Short-​Term, AAA-​rated) and they'​re shown by currency. U.​S. dollar accounts for the largest share, followed by sterling and then euro.... So the two segments of the European markets [​are] VNAV, domiciled and largely sold in France, and IMMFA funds, overwhelmingly stable NAV, now domiciled in Ireland and Luxembourg, and sold across Europe and globally.'"

Our "Worldwide MMFs" piece states, "ICI'​s 'Worldwide Regulated Open-​Fund Assets and Flows, Second Quarter 2023' shows that money fund assets globally jumped by $​257.​9 billion, or 2.​7%, in Q2'​23 to $​9.​719 trillion. The increases were led by a sharp jump in money funds in U.​S., while India, France, Mexico and Luxembourg also rose. Meanwhile, money funds in China and Ireland were lower. MMF assets worldwide increased by $​1.​237 trillion, or 14.​6%, in the 12 months through 6/​30/​23, and money funds in the U.​S. now represent 56.​1% of worldwide assets."

It explains, "​ICI'​s release says, 'Worldwide regulated open-​end fund assets increased 3.​1% to $​65.​07 trillion at the end of the second quarter of 2023, excluding funds of funds. Worldwide net cash inflow to all funds was $​461 billion in the second quarter, compared with $​667 billion of net inflows in the first quarter of 2023. The Investment Company Institute compiles worldwide regulated open-​end fund statistics on behalf of the International Investment Funds Association (​IIFA).... The collection for the second quarter of 2023 contains statistics from 46 jurisdictions."

MFI also includes the News brief, "Dreyfus Launches SPARK Shares. A press release, 'Dreyfus Launches SPARK Shares of Dreyfus Government Cash Management,' tells us, '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.'"

Another News brief, "MarketWatch: Inst to Join MMF Inflows. Their piece, says, 'Like Taylor Swift, assets in money-​market funds keep setting records this year. But a key group of investors [​institutions] isn'​t even leading the charge, said Deborah Cunningham, CIO, global liquidity markets at Federated Hermes.'"

A third News brief, "Morgan Stanley Liquidates Tax-​Exempts," says, "​Two recent Prospectus Supplements announced the liquidations of Morgan Stanley California Tax-​Free Daily Income Trust and Morgan Stanley Tax-​Free Daily Income Trust."

A sidebar, "Bloomberg: MFs Rake in Cash," says, "Bloomberg published, 'The Higher-​for-​Longer Interest-​Rate Bonanza,' which is subtitled, 'With yields passing 5%, money-​market funds rake in cash while banks fail to keep pace.' They tell us, '​With the US Federal Reserve keeping interest rates pinned around zero for most of the past 15 years, depositors grew resigned to earning virtually nothing on their cash.... A turning point came in the spring. Thanks to the Fed'​s inflation-​fighting interest-​rate hikes, people started to see they could earn 4% or more on their money.'"

Our October MFI XLS, with September 30 data, shows total assets increased $​77.​8 billion to a record $​6.​095 trillion, after increasing $​104.​2 billion in August, $​21.​0 billion in July, $​20.​3 billion in June, $​152.​7 billion in May, $​56.​5 billion in April, $​345.​1 billion in March, $​56.​0 billion in February, $​22.​5 billion in January, $​70.​2 billion in December and $​55.​4 billion in November. MMFs rose $​42.​2 billion last October.

Our broad Crane Money Fund Average 7-​Day Yield was up 2 bps to 5.​06%, and our Crane 100 Money Fund Index (​the 100 largest taxable funds) was up 2 bps to 5.​18% in September. On a Gross Yield Basis (​7-​Day) (​before expenses are taken out), the Crane MFA and the Crane 100 both were both higher at 5.​34% and 5.​25%, respectively. Charged Expenses averaged 0.​37% and 0.​27% for the Crane MFA and the Crane 100. (​We'​ll revise expenses on Tuesday once we upload the SEC'​s Form N-​MFP data for 9/​30/​23.) The average WAM (​weighted average maturity) for the Crane MFA was 27 days (​up 3 days from previous month) and the Crane 100 WAM was also up 3 at 26 days. (​See our Crane Index or craneindexes.​xlsx history file for more on our averages.)