Jun 07

 

The June issue of our flagship Money Fund Intelligence newsletter, which was sent out to subscribers Wednesday morning, features the articles: "Money Fund Assets Break $​5.​8 Trillion; $​6.​0 Trillion or Bust," which discusses the continued growth of MMFs; "ICI 2023 Fact Book Shows Money Fund Trends in '​22," which quotes from the Institute'​s annual statistics summary; and, "SEC Chair Gensler on Bears, Runs, Money Funds at ICI," which covers Gary Gensler'​s recent speech. We also will send out our MFI XLS spreadsheet Wednesday a.​m., and we'​ve updated our Money Fund Wisdom database with 5/​31/​23 data. Our June Money Fund Portfolio Holdings are scheduled to ship on Friday, June 9, and our June Bond Fund Intelligence is scheduled to go out on Wednesday, June 14.

MFI'​s "MMFs Break $​5.​8 Trillion" article says, "Money fund assets continue their rise to record levels; they broke the $​​5.​​8 trillion level in late May and ended the month at $​5.​845 trillion. Crane Data'​s `​Money Fund Intelligence XLS shows assets increasing by $​152.​7 billion in May, following gains of $​64.​2 billion in April and $​360.​4 billion in March. YTD, MMFs have increased by $​676.​7 billion, or 13.​1%, and they'​ve jumped by $​881.​4 billion, or 17.​8% over 12 months. Today'​s MFI Daily shows assets hitting a record $​5.​858 trillion, so we expect the $​6.​0 trillion barrier to fall within a month or two."

The piece continues, "Taxable Retail MMFs increased by $​55.​7 billion in May and have grown by $​278.​1 billion (​17.​0%) YTD. They'​ve increased by a shocking $​515.​4 billion, or 36.​9%, over 12 months. Inst MMFs increased $​92.​6 billion last month. They'​re up $​400.​0B (​11.​7%) YTD and $​356.​3B (​10.​3%) over one year. Tax Exempt MMFs were up $​4.​5 billion in May but down $​1.​5B YTD. Prime MMFs were up $​49.​7 billion, Govt MMFs were up $​144.​4 billion, and Treasury MMFs were down $​9.​4 billion in May."

Our Fact Book article states, "​The Investment Company Institute released its '2023 Investment Company Fact Book' an annual compilation of statistics and commentary on the mutual fund space. Subtitled, 'A Review of Trends and Activities in the Investment Company Industry,' the latest edition tells us, 'With stock markets down across the globe in 2022 ... worldwide total net assets of equity funds ... decreased by 20% to $​26.​9 trillion at year-​end 2022. Bond funds -- which invest primarily in fixed-​income securities -- saw their total net assets decrease 16% over the same period.... In contrast, net assets of money market funds -- which are generally understood to be regulated funds that are restricted to holding short-​term, high-​quality debt instruments -- increased slightly.'"

It continues, "​Discussing 'Worldwide' mutual funds (​page 12), ICI writes, 'Worldwide net sales of money market funds totaled $​171 billion in 2022, down from $​673 billion in 2021.... The decline in worldwide demand for money market funds was largely driven by a decrease in net sales in the United States and the Asia-​Pacific region. Investor demand for money market funds in the United States decreased from $​424 billion in 2021 to $​10 billion in 2022; and in the Asia-​Pacific region, money market funds experienced net inflows of $​132 billion in 2022, down from $​254 billion in 2021.'"

Our "SEC Chair Gensler" piece states, "Securities & Exchange Commission Chair Gary Gensler spoke recently at the '2023 ICI Leadership Summit.' His talk, entitled, 'Bear in the Woods,' tells us, '​There is a saying when you'​re in the woods. 'You don'​t have to outrun the bear; you just have to outrun one of your fellow campers.' ... It also helps explain why savers might try to cash out of deposits before that proverbial bear catches them at the bank.... Runs, when otherwise uncorrelated actors suddenly become correlated, have brought down many a financial firm over time.'"

MFI states, "​He explains, 'Registered investment funds have grown to more than $​30 trillion, with more than 16,​000 funds. More than half of American households and more than 120 million individual Americans own ... funds.... Money market funds came about in the early 1970s.'"

MFI also includes the News brief, "Money Fund Yields Rise to 4.​90%; Sweeps Up to 0.​46%." It states, "Money fund yields moved higher yet again over the past month as they digested the Federal Reserve'​s latest 25 basis point rate increase (​on 5/​2). Our Crane 100 Money Fund Index (​7-​Day Yield) was up 26 bps to 4.​90% in May. Yields are up from 4.​64% on April 30, 4.​61% on 3/​31, 4.​05% on 12/​31/​22 and 2.​66% on 9/​30/​22."

Another News brief, "Money Fund Revenue Hits Record $​15.​65 Billion (​Annualized)," states, "According to our latest asset and charged expense numbers, we estimate that annualized revenue for money funds is at a record $​15.​646 billion pace (​as of 5/​31/​23), up from $​15.​143 billion last month and up from $​14.​135B 3 months ago."

A sidebar, "More ICI Fact Book: Data," states, "On page 1, we review the ICI'​s '​2023 Investment Company Fact Book.' But it also contains numerous 'Data Tables' involving 'Money Market Mutual Funds.' ICI lists annual statistics on shareholder accounts, the number of funds, net assets, net new cash flows, paid and reinvested dividends, composition of prime and government funds, and net assets of institutional investors by type of institution."

Another sidebar, "BlackRock'​s Fink on MMFs," states, "​Last week, Deutsche Bank hosted its 13th annual 'Global Financial Services Conference,' which featured a discussion with BlackRock'​s Larry Fink. Fink comments, 'More fear means more savings in the short run.' Fink tells the DB event, 'Related to money markets, most of the money went into government funds, almost 95% went into government funds.... The big problem we had over that SVB weekend was, 'Should every corporation who had excess cash sitting in a bank, should they be sweeping it into the holding company every night?' By the way, some companies are now doing that. 'They'​re sweeping it in ... whether they'​re using the money market funds of a bank or they'​re outsourcing a lot more of that.'"

Our June MFI XLS, with May 31 data, shows total assets increased $​152.​7 billion to $​5.​845 trillion, after increasing $​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 in October, $​1.​7 billion in September, $​2.​3 billion in August, $​26.​0 billion in July and $​31.​9 billion in June. They decreased $​10.​7 billion in May 2022.

Our broad Crane Money Fund Average 7-​Day Yield was up 23 bps to 4.​75%, and our Crane 100 Money Fund Index (​the 100 largest taxable funds) was up 26 bps to 4.​90% in May. 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.​05% and 4.​99%, respectively. Charged Expenses averaged 0.​38% and 0.​27% for the Crane MFA and the Crane 100. (​We'​ll revise expenses on Thursday once we upload the SEC'​s Form N-​MFP data for 5/​31/​23.) The average WAM (​weighted average maturity) for the Crane MFA was 22 days (​up 4 days from previous month) while the Crane 100 WAM was up 4 at 20 days. (​See our Crane Index or craneindexes.​xlsx history file for more on our averages.)

May 05

 

The May issue of our flagship Money Fund Intelligence newsletter, which was sent out to subscribers Friday morning, features the articles: "Cash Big Topic on Q1 Earnings Calls: BlackRock, Schwab, BNY," which discusses the huge shift in assets from bank deposits to MMFs; "Federated Hermes Talks Record Assets, LGIPs, ETFs," which quotes from the company'​s Q1'​23 earnings call; and, "ICI Myths on Money Funds vs. Bank Deposits, Fed RRP," which dispels some recent criticisms of MMFs. We also sent out our MFI XLS spreadsheet Friday a.​m., and we'​ve updated our Money Fund Wisdom database with 4/​30/​23 data. Our May Money Fund Portfolio Holdings are scheduled to ship on Tuesday, May 9, and our May Bond Fund Intelligence is scheduled to go out on Friday, May 12.

MFI'​s "Cash Big Topic on Q1 Earnings Calls: BlackRock, Schwab, BNY" article says, "Quarterly earnings reports from major financial companies are shedding more light upon the huge March shift in assets from bank deposits to money market mutual funds. BlackRock'​s Q1'​23 earnings call included a number of comments on the cash super-​spike. (​See the transcript here.) CFO Martin Small comments, 'Negative revenue impacts were partially offset by the elimination of discretionary money market fund fee waivers and higher securities lending revenue. BlackRock'​s cash management platform saw $​8 billion of net inflows in the quarter. Flows were driven by surging demand for our cash management solutions in March as clients diversified away from deposits and enhance cash yields.'"

The piece continues, "​He explains, 'We'​re actively working with clients on their liquidity management strategies, providing technology, market and operational insights and, of course, delivering a full range of cash management capabilities.'"

Our BFS "​profile" piece states, "Federated Hermes, the 6th largest manager of money funds, reported Q1’​23 earnings and hosted its latest earnings conference call late last week. President & CEO J. Christopher Donahue comments in a press release, 'Federated Hermes' record assets under management were driven by money market asset increases accompanied by further increases across nearly all other long-​term asset classes from the previous quarter, demonstrating once again the value of our diversified business mix. As interest rates continued their rise and as investors considered regional banking issues, many withdrew deposits from small and medium-​sized banks and continued to embrace the benefits of money market funds -- high credit quality, short duration, diversification, transparency, daily liquidity and market yields. Federated Hermes had positive net flows into a range of our money market products -- from government to prime.'"

It continues, "​The release says, 'Money market assets were a record $​505.​8 billion at March 31, 2023, up $​85.​2 billion or 20% from $​420.​6 billion at March 31, 2022 and up $​29.​0 billion or 6% from $​476.​8 billion at Dec. 31, 2022. Money market fund assets were $​357.​3 billion at March 31, 2023, up $​77.​8 billion or 28% from $​279.​5 billion at March 31, 2022 and up $​21.​4 billion or 6% from $​335.​9 billion at Dec. 31, 2022.... Revenue increased $​57.​4 million or 18% primarily due to a decrease in voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields (​voluntary yield-​related fee waivers) and an increase in revenue due to higher average money market assets [​vs. a year ago].'"

Our "ICI Myths on Money Funds vs. Bank Deposits, Fed RRP" piece states, "​Mutual fund trade association, the Investment Company Institute (​ICI) recently posted a 'Viewpoint' entitled, 'Three Myths and Facts about Bank Deposits, Bank Lending, and Money Market Funds,' which argues against the media'​s misperception that the shift from bank deposits to money market funds is harming the real economy by reducing lending. Chief Economist Sean Collins writes, '​Following the difficulties at Silicon Valley Bank (​SVB), Signature Bank, and Credit Suisse in early March 2023, a number of media reports cited analysts who suggested that money market funds (​MMFs) are drawing deposits away from banks, adding to stresses at banks and preventing them from lending more to businesses and consumers.... This narrative, though colorful and attention-​grabbing, needs fact-​checking.'"

MFI states "​He cites 'Myth #​1: In March 2023, $​422 billion flowed into government MMFs, which became '​dead money' in the Fed'​s RRP facility that banks could otherwise have lent to businesses and households.' Collins responds with, 'Fact #​1: Government MMFs recycled over 70 percent of the $​422 billion back into the banking system, either directly or indirectly. As assets in government MMFs climbed in March, those funds invested an additional $​190.​5 billion in debt issued by Federal Home Loan Banks, which in turn lent the proceeds to banks. Government MMFs also raised by $​112.​4 billion their investments in repo, providing additional funding to banks or their broker subsidiaries. Only $​68.​5 billion of the increase was invested in the Fed'​s RRP.'"

MFI also includes the News brief, "Fed Hikes 10th Time to 5.​00-​5.​25%." It tells us, "​The release, 'Federal Reserve issues FOMC statement,' says, '[​T]​he Committee decided to raise the target range for the federal funds rate to 5 to 5-​1/​4 percent.' Our Crane 100 Money Fund Index (​7-​Day Yield) rose just 3 bps in April to 4.​64%, but it should jump next week and push towards 5.​0%."

Another News brief, "MMF Assets Break $​5.​7 Trillion," explains, "Crane Data'​s MFI XLS shows MMFs jumping another $​56.​8 billion in April to a record $​5.​685 trillion. Our MFI Daily shows assets jumping another $​63.​6 billion the first 3 days of March, breaking $​5.​7 trillion and rising to a record $​5.​729 trillion Wednesday."

A sidebar, "SEC: Private Funds $​333 Bil.," states, "​The SEC released its latest quarterly 'Private Funds Statistics' report late last month, which summarizes Form PF reporting and includes some data on 'Liquidity Funds,' or pools which are similar to but not money market funds. The publication shows overall Liquidity fund assets were higher in the latest reported quarter (​Q3'​22) at $​333 billion (​up from $​328 billion in Q2'​22 and up from $​302 billion in Q3'​21)."

Another sidebar, "FP Hits Brokerage Sweep" states, "Financial Planning magazine published a piece, 'The wealth management industry'​s $​1T conflict of interest,' which explains, '[T]​he brokerage industry'​s widespread and lucrative practice of cash sweeps has drawn extensive regulatory scrutiny and the ire of consumer advocates since it started around 2000. As long as the firms fully disclose the conflict of interest, though, there is nothing illegal about rolling up clients' uninvested cash into bank accounts that pay brokerage firms the vast majority of rising interest yields that feed the industry'​s bottom line more every time the Fed raises rates.'"

Our May MFI XLS, with April 30 data, shows total assets increased $​56.​5 billion to $​5.​685 trillion, after increasing $​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 in October, $​1.​7 billion in September, $​2.​3 billion in August, $​26.​0 billion in July and $​31.​9 billion in June. They decreased $​10.​7 billion in May 2022.

Our broad Crane Money Fund Average 7-​Day Yield was up 6 bps to 4.​52%, and our Crane 100 Money Fund Index (​the 100 largest taxable funds) was up 3 bps to 4.​64% in April. On a Gross Yield Basis (​7-​Day) (​before expenses are taken out), the Crane MFA and the Crane 100 both were both higher at 4.​81% and 4.​75%, respectively. Charged Expenses averaged 0.​38% and 0.​27% for the Crane MFA and the Crane 100. (​We'​ll revise expenses on Monday once we upload the SEC'​s Form N-​MFP data for 4/​30/​23.) The average WAM (​weighted average maturity) for the Crane MFA was 18 days (​up 1 day from previous month) while the Crane 100 WAM was up 1 at 16 days. (​See our Crane Index or craneindexes.​xlsx history file for more on our averages.)

Apr 10

 

The April issue of our flagship Money Fund Intelligence newsletter, which was sent out to subscribers Monday morning, features the articles: "MMFs Break $​5.​6 Trillion on SVB, Deposit Super Surge," which discusses the huge inflows coming from uninsured deposits; "Northern'​s LaRocco, Fidelity'​s Pope on MMF Inflows at BFS," which quotes from our recent Bond Fund Symposium; and, "ICI Worldwide MMFs Jump in Q4, Led by US, Ireland, France," which covers recent data on money fund markets outside the U.​S. We also sent out our MFI XLS spreadsheet Monday a.​m., and we'​ve updated our Money Fund Wisdom database with 3/​31/​23 data. Our April Money Fund Portfolio Holdings are scheduled to ship on Wednesday, April 12, and our April Bond Fund Intelligence is scheduled to go out on Monday, April 17.

MFI'​s "MMFs Break $​5.​6 Trillion" article says, "Money fund assets, which had already been hitting record levels earlier this year, skyrocketed in March as the failure of Silicon Valley Bank raised concerns over uninsured bank deposits. Crane Data'​s MFI XLS shows money fund assets increasing by $​345.​1 billion to a record $​5.​613 trillion, their 3rd largest increase ever. (​Only March and April 2020 show bigger gains, when MMFs jumped $​688.​1 billion and $​471.​2 billion, respectively.)

The piece continues, "Year-​to-​date through 3/​31/​23, money fund assets have increased by $​444.​5 billion, or 8.​6%, and over 12 months assets have increased by $​565.​1 billion, or 11.​2%. Our MFI Daily shows assets continuing to increase in April, rising by $​28.​2 billion to a record $​5.​638 trillion. (Note: MFI Daily'​s assets series differs slightly from our monthly MFI XLS series.)

Our BFS "​profile" piece states, "​Two and a half weeks ago, we hosted our latest Crane'​s Bond Fund Symposium in Boston. The only session focusing on cash, "Money Funds & Conservative Ultra‐​Shorts," featured our Peter Crane along with Northern Trust Asset Management'​s Dan LaRocco and Fidelity'​s Kerry Pope. We excerpt from this segment below. (​Thanks again to those who attended and supported BFS, and attendees and Crane Data subscribers may access the Powerpoints, recordings and conference materials at the bottom of our "Content" page or via our Bond Fund Symposium 2022 Download Center.)"

It continues, "​Pope comments, 'We'​ve certainly benefiting from all the turmoil within the banking sector. Each and every day you wake up, there'​s new money coming in, new accounts being opened. So we'​ve got a lot of tailwinds right now. The good thing is that we'​re actually able to earn some money on it.... A few years ago in the zero-​rate environment, we were having to waive fees all over the place. So now it'​s a good combination of being able to recognize the fees, plus the volume.'"

Our "ICI Worldwide" piece states, "​The Investment Company Institute published, 'Worldwide Regulated Open-​Fund Assets and Flows, Fourth Quarter 2022,' which shows that money fund assets globally jumped by $​550.​7 billion, or 6.​6%, in Q4'​22 to $​8.​856 trillion. The increases were led by sharp jumps in money funds in U.​S., Ireland, France and Luxembourg. Meanwhile, only money funds in Brazil were lower. MMF assets worldwide increased by $​22.​4 billion, or 0.​3%, in the 12 months through 12/​31/​22; money funds in the U.​S. now represent 53.​9% of worldwide assets."

MFI states" "​ICI'​s release says, 'Worldwide regulated open-​end fund assets increased 7.​1% to $​60.​15 trillion at the end of the fourth quarter of 2022, excluding funds of funds.... The Investment Company Institute compiles worldwide regulated open-​end fund statistics on behalf of the International Investment Funds Association (​IIFA), the organization of national fund associations. The collection for the fourth quarter of 2022 contains statistics from 46 jurisdictions.'"

MFI also includes the News brief, "Fed Hikes to 4.​75-​5.​0%; Yields 4.​6%. A release, 'Federal Reserve issues FOMC statement,’ says, '[​T]​he Committee decided to raise the target range for the federal funds rate to 4-​3/​4 to 5%.' Our Crane 100 Money Fund Index (​7-​Day Yield) rose 24 bps to 4.​61%."

Another News brief, "NY Fed on MMFs, Rates," tells us, "​The post, 'Monetary Policy Transmission and the Size of the Money Market Fund Industry: An Update,' tells us, 'The size of the money market fund industry co-​moves with the monetary policy cycle.'"

A sidebar, "Vanguard'​s Smith on MMFs," states, "Vanguard writes 'Tried and true money markets get boost with rising rates,' which summarizes, 'Nafis Smith, principal and head of Vanguard'​s taxable money markets, discusses money markets in a rising interest rate environment, the stress tests behind Vanguard'​s stability mandate, and how a low fee structure advantages money market portfolios.'"

Another sidebar, "Yellen Hits MMFs in Speech," states, "Treasury Secretary Janet Yellen said in a recent speech, 'As we strengthen the banking sector, we are also making progress on one of FSOC'​s top priorities: mitigating vulnerabilities in nonbank financial intermediation. Many of these nonbank institutions engage in liquidity and maturity transformation: they profit by issuing short-​term obligations while investing in riskier and longer-​term assets. But they are generally not regulated to account for spillovers to the rest of the financial system during times of ... stress.'"

Our March MFI XLS, with March 31 data, shows total assets increased $​345.​1 billion to $​5.​613 trillion, after increasing $​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 in October, $​1.​7 billion in September, $​2.​3 billion in August, $​26.​0 billion in July and $​31.​9 billion in June. They decreased $​10.​7 billion in May and $​74.​3 billion in April. MMFs increased $​24.​1 billion last March.

Our broad Crane Money Fund Average 7-​Day Yield was up 21 bps to 4.​46%, and our Crane 100 Money Fund Index (​the 100 largest taxable funds) was up 22 bps to 4.​61% in March. On a Gross Yield Basis (​7-​Day) (​before expenses are taken out), the Crane MFA and the Crane 100 both were both higher at 4.​76% and 4.​72%, respectively. Charged Expenses averaged 0.​38% 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 3/​31/​23.) The average WAM (​weighted average maturity) for the Crane MFA was 17 days (​unchanged from previous month) while the Crane 100 WAM was up 1 at 15 days. (​See our Crane Index or craneindexes.​xlsx history file for more on our averages.)

Mar 07

 

The March issue of our flagship Money Fund Intelligence newsletter, which was sent out to subscribers Tuesday morning, features the articles: "Treasury MMFs Brace for Debt Ceiling Faceoff, Supply Shock," which reviews the risk to Treasury funds; "BlackRock'​s Matt Clay on European MMF Landscape," which quotes from a recent ICD webinar; and, "Federated 10-​K Sheds Light on Regulatory Environment," which excerpts from Federated Hermes' annual report. We also sent out our MFI XLS spreadsheet Tuesday a.​m., and we'​ve updated our Money Fund Wisdom database with 2/​28/​23 data. Our March Money Fund Portfolio Holdings are scheduled to ship on Thursday, March 9, and our March Bond Fund Intelligence is scheduled to go out on Tuesday, March 14.

MFI'​s "Treasury MMFs Brace" article says, "While record asset levels and yields moving towards 5.​0% are the big stories for money funds so far in 2023, many have begun to focus on the looming Treasury debt ceiling battle. Fitch Ratings tells us in the release, 'U.​S. Debt Ceiling Uncertainty a Risk for Treasury Money Market Funds,' 'A default by the U.​S. Treasury could pose liquidity and headline risks and ratings pressure for U.​S. Treasury-​only money market funds (​MMFs), but would not necessarily result in downgrades, with considerations including the size of any exposure to defaulted securities and alternative sources of fund liquidity.'"

The piece continues, "​They explain, 'The U.​S. government debt limit was reached on Jan. 19, 2023. However, the Treasury Department is using '​extraordinary measures' to avoid defaulting on obligations.... The Congressional Budget Office has calculated the x-​date will fall sometime between July and September 2023, though it cautioned that extraordinary measures could be exhausted sooner, and the Treasury could run out of funds before July.'"

Our BlackRock "​profile" piece states, "Online money market funds trading portals ICD recently hosted a webinar entitled, 'Economic Update: Cash Investment Forecast for the Year Ahead,' featuring BlackRock Cash Management Head of International Portfolio Management Matt Clay. Clay and ICD host Luke Newman discussed a number of issues involving short-​term investment trends in U.​S. dollar, euro and sterling currencies. Newman says, 'I'​m going to start off with a brief intro in terms of `​what ICD saw in 2022, in terms of flows into the money market funds.... I'​ll then pass it over to BlackRock, who will be providing an economic update, an outlook at the macro level, and then talking more specifically around cash and the impact of monetary policy in general on short-​term investment trends.'"

It continues, "​He explains, 'We wanted to share some of the trends that we saw at ICD last year. So, we start in 2022 with low interest rates in the three main currencies, having been in a low interest rate environment for some time. Over the course of a year, we started seeing these rates rise which generated significant interest in money market funds.... For the first half of the year, assets in these funds were averaging just over the $​65 billion mark. As central banks started increasing rates, you can see that assets significantly increased, peaking near to $​95 billion at the end of last year. That'​s close to a 50% increase when compared to the first half of the year. This graph doesn'​t show the start of this year, but the trend has continued. So, in summary, as interest rates rise, so has the interest in money market funds.'"

Our "Federated 10-​K" piece states, "Federated Hermes filed its latest '10-​K Annual Report' with the SEC recently, and the 109-​page document contains a wealth of information on money market mutual funds. On 'Distribution Channels,' it says, 'Federated Hermes' distribution strategy is to provide investment management products and services to more than 11,​000 institutions and intermediaries, including, among others, banks, broker/​dealers, registered investment advisors, government entities, corporations, insurance companies, foundations and endowments.... [​I]​nvestment products ... are offered and distributed in three markets.... U.​S. financial intermediary (​63%); U.​S. institutional (​28%); and international (​9%).'"

MFI states, "​They write, 'Financial intermediaries use Federated Hermes' products to meet the needs of their customers, who are often retail investors.... As of Dec. 31, 2022, managed assets in the U.​S. financial intermediary market included $​317.​9 billion in money market assets.... Federated Hermes offers and distributes its products and strategies to a wide variety of domestic institutional customers including, among others, government entities, not-​for-​profit entities, corporations, corporate and public pension funds, foundations, endowments and non-​Federated Hermes investment companies or other funds. As of Dec. 31, 2022, managed assets in the U.​S. institutional market included $​144.​0 billion in money market assets.... [​M]​anaged assets in the international market included ... $​15.​0 billion in money market assets.'"

MFI also includes the News brief, "MMF Assets Surge to Record $​5.​3T," which says, "Assets jumped $​56.​0 billion in February to a record $​5.​261 trillion, according to MFI XLS, and assets jumped another $​17.​3 billion the first 3 days in March to $​5.​270 trillion, according to MFI Daily. See our sidebar on page 7 for more."

Another News brief, "Yields Up Another Quarter in Feb.," tells us, "Money fund yields moved 24 bps higher on average last month in direct response to the Fed'​s 25 basis point hike on Feb. 1. Our Crane 100 Money Fund Index (​7-​Day Yield) rose 24 basis points to 4.​39% in the month ended 2/​28. Money fund yields have risen from 4.​05% on 12/​31/​22. Yields should remain flat over the next 3 weeks, but they should jump again following the Fed'​s next meeting on March 22 (​if they hike rates again as expected)."

A sidebar, "SEC: Private Liquidity Funds," states, "​The SEC released its latest quarterly 'Private Funds Statistics' report recently, which summarizes Form PF reporting and includes some data on 'Liquidity Funds,' or pools which are similar to but not money market funds. The publication shows overall Liquidity fund assets were higher in the latest reported quarter (​Q2'​22) at $​328 billion (​up from $​313 billion in Q1'​22 and up from $​319 billion in Q2'​21)."

Our March MFI XLS, with February 28 data, shows total assets increased $​56.​0 billion to $​5.​261 trillion, after increasing $​22.​5 billion in January, $​70.​2 billion in December and $​55.​4 billion in November. MMFs rose $​42.​2 billion in October, $​1.​7 billion in September, $​2.​3 billion in August, $​26.​0 billion in July and $​31.​9 billion in June. They decreased $​10.​7 billion in May and $​74.​3 billion in April. MMFs increased $​24.​1 billion in March, but decreased $​34.​6 billion last February.

Our broad Crane Money Fund Average 7-​Day Yield was up 23 bps to 4.​25%, and our Crane 100 Money Fund Index (​the 100 largest taxable funds) was up 24 bps to 4.​39% in February. On a Gross Yield Basis (​7-​Day) (​before expenses are taken out), the Crane MFA and the Crane 100 both were both higher at 4.​56% and 4.​51%, respectively. Charged Expenses averaged 0.​38% and 0.​26% for the Crane MFA and the Crane 100. (​We'​ll revise expenses on Wednesday once we upload the SEC'​s Form N-​MFP data for 2/​28/​23.) The average WAM (​weighted average maturity) for the Crane MFA was 17 days (​unchanged from previous month) while the Crane 100 WAM remained the same at 14 days. (​See our Crane Index or craneindexes.​xlsx history file for more on our averages.)