MFI Daily Data

MFI Daily Data Sample

Northern Institutional Funds filed to liquidate its $1.7 billion Northern Prime Obligations Portfolio earlier this week, we learned from Bloomberg. The filing says, "The Board of Trustees (the 'Board') of Northern Institutional Funds (the 'Trust') has determined, after consideration of a number of factors, that it is in the best interests of the Prime Obligations Portfolio (the 'Portfolio') and its shareholders that the Portfolio be liquidated and terminated on or about July 10, 2020 (the 'Liquidation Date') pursuant to a plan of liquidation approved by the Board. The Liquidation Date may be changed at the discretion of the Trust's officers. The pending liquidation of the Portfolio may be terminated and/or abandoned at any time before the Liquidation Date by action of the Board of the Trust. As of the date of this supplement, Williams Capital Shares of the Portfolio have not commenced operations and are not offered for purchase." (The fund's assets are down from $3.8 billion on Feb. 28, 2020.)

The Bloomberg piece, "Northern Trust to Shutter Money-Market Fund After Redemptions," tells us, "Northern Trust Corp. is shutting down a money-market mutual fund after volatility in March spurred redemptions that sent it below a regulatory threshold for maintaining liquidity. The $1.7 billion Northern Institutional Prime Obligations Portfolio will stop accepting new investments next month and start selling its holdings under a liquidation plan set for July 10, according to a filing."

Reuters, in a March 23 article,"Fed's Money Market Move Lifts Northern Trust Fund Above Key Threshhold," wrote, "Liquidity at a $2.2 billion prime money-market fund run by Northern Trust Corp fell below the key 30% U.S. regulatory threshold twice last week, but rebounded above that level after the U.S. Federal Reserve shored up the industry. As the coronavirus roils the global economy and squeezes Wall Street for cash, money-market reforms put in place after the 2007-2009 financial crisis are weathering a major test."

They explained, "Several institutional prime funds, whose investors include large corporations, were at risk of falling below the 30% threshold before the Fed took extraordinary steps reminiscent of the last financial crisis to backstop the money-market industry." The Northern Prime Obligations Portfolio disclosed that its weekly liquidity level fell to 27% of assets twice last week, according to the fund's website -- reducing its buffer for quickly converting assets into cash to meet investors' redemptions. However, Chicago-based Northern Trust, a bank and wealth manager, said on Monday the latest weekly liquidity level for the fund was nearly 41%."

In other news, The Federal Reserve Bank of New York published an update on the "The Primary Dealer Credit Facility" via its Liberty Street Economics blog. They write, "On March 17, 2020, the Federal Reserve announced that it would re-establish the Primary Dealer Credit Facility (PDCF) to allow primary dealers to support smooth market functioning and facilitate the availability of credit to businesses and households. The PDCF started offering overnight and term funding with maturities of up to ninety days on March 20. It will be in place for at least six months and may be extended as conditions warrant. In this post, we provide an overview of the PDCF and its usage to date."

The NY Fed writes, "Lending rose quickly after the PDCF's launch, and the weekly average of outstanding loans peaked at over $35 billion for the week ending April 15.... Outstanding loans remained in the $30-35 billion range for a few weeks, before decreasing recently, as market conditions improved. The vast majority of value-weighted PDCF loans have a maturity longer than overnight.... The bulk of the assets financed in the PDCF to date have been corporate and municipal debt, as well as asset-backed securities and commercial paper. These are asset classes that were experiencing considerable volatility and pressure in early March. Market conditions have improved markedly since the introduction of a variety of Fed interventions, including the PDCF."

They explain, "The Federal Reserve initially established the PDCF in March of 2008, following severe strains in the tri-party repo market, associated in part with Bear Stearns' troubles.... Following its inception in March 2008, usage of the original PDCF increased to approximately $40 billion, before decreasing to zero by mid-2008.... This $40 billion level is roughly comparable to the peak usage of today's PDCF. Usage of the original PDCF increased to over $140 billion in September 2008, following the bankruptcy of Lehman Brothers. This peak is much higher than the current use of today's PDCF. However, the range of collateral eligible for the PDCF post-Lehman was much broader than the range of eligible collateral at the PDCF today, making comparisons difficult."

The piece adds, "The PDCF is one of many facilities introduced by the Federal Reserve to support the U.S. economy in the face of the coronavirus pandemic. The PDCF helps primary dealers support smooth market functioning and facilitate the availability of credit to businesses and households in their capacity as market makers for corporate, consumer, and municipal obligations." For more, see these previous Liberty Street Economics blogs: "The Money Market Mutual Fund Liquidity Facility" and "The Commercial Paper Funding Facility."

Finally, 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 May 15) includes Holdings information from 80 money funds (up two from two weeks ago), which represent $2.664 trillion (up from $2.568 trillion) of the $5.123 trillion (52.0%) in total money fund assets tracked by Crane Data. (Note that our Weekly MFPH are e-mail only and aren't available on the website. For our latest monthly Holdings, see our May 12 News, "May MF Portfolio Holdings: Treasuries Skyrocket, Repo Plunges in April.)

Our latest Weekly MFPH Composition summary again shows Government assets dominating the holdings list with Treasury totaling $1.344 trillion (up from $1.209 trillion two weeks ago), or 50.4%, Repurchase Agreements (Repo) totaling $635.7 billion (down from $706.4 billion two weeks ago), or 23.9% and Government Agency securities totaling $470.7 billion (up from $470.4 billion), or 17.7%. Certificates of Deposit (CDs) totaled $70.7 billion (up from $48.7 billion), or 2.7% and Commercial Paper (CP) totaled $59.2 billion (up from $58.7 billion), or 2.2%. A total of $46.9 billion or 1.8%, was listed in the Other category (primarily Time Deposits), and VRDNs accounted for $37.6 billion, or 1.4%.

The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.344 trillion (50.4% of total holdings), Federal Home Loan Bank with $289.3B (10.9%), Fixed Income Clearing Co with $99.9B (3.7%), Federal Farm Credit Bank with $69.9B (2.6%), BNP Paribas with $69.5B (2.6%), Federal National Mortgage Association with $57.5B (2.2%), Federal Home Loan Mortgage Corp with $51.3B (1.9%), JP Morgan with $49.5B (1.9%), RBC with $46.8B (1.8%) and Mitsubishi UFJ Financial Group Inc with $30.0B (1.1%).

The Ten Largest Funds tracked in our latest Weekly include: JP Morgan US Govt ($228.4B), Goldman Sachs FS Govt ($217.0B), Fidelity Inv MM: Govt Port ($194.3B), BlackRock Lq FedFund ($175.5B), JPMorgan 100% US Treas MMkt ($142.3B), Wells Fargo Govt MM ($138.6B), Goldman Sachs FS Treas Instruments ($133.3B), Morgan Stanley Inst Liq Govt ($109.3B), State Street Inst US Govt ($105.4B) and BlackRock Lq T-Fund ($86.4B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary, or our Bond Fund Portfolio Holdings data series.)

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MFI Daily Data News

Jun 07
 

The June issue of our flagship Money Fund Intelligence newsletter, which was sent to subscribers Tuesday morning, features the articles: "Money Fund Yields Climb, Pulling Sweeps, Deposits Up," which discusses the jump in money fund rates; "ICI 2022 Fact Book Shows Money Fund Trends in '21," which covers the Investment Company Institute's annual statistical guide; and, "Bank of England, FCA Paper Reviews Money Funds in UK," which reviews regulatory discussions in Europe. We also sent out our MFI XLS spreadsheet Tuesday morning, and we've updated our database with 5/31/22 data. Our June Money Fund Portfolio Holdings are scheduled to ship on Thursday, June 9, and our June Bond Fund Intelligence is scheduled to go out on Tuesday, June 14. (Note: Our MFI, MFI XLS and Crane Index products are all available to subscribers via our Content center.)

MFI's "Yields Climb article says, "Money market fund yields continue to inch higher after a surge in early May following the Fed's 50-basis-point move. Our flagship Crane 100 Money Fund Index, which ended May at 0.57%, rose to 0.​59% in the week ended Friday, June 3. The average had been 0.​55% the prior week, 0.​21% on April 29, 0.​15% on March 31 and 0.​02% on February 28 (​where it had been for almost 2 years prior)."

It continues, "Brokerage sweep deposit rates have also begun inching higher, with Fidelity Investments hiking its FDIC-insured brokerage sweep rate to 0.25% from 0.01% last month. Our latest Brokerage Sweep Intelligence shows the average rate (​on FDIC insured deposits) inched up to 0.05%, up from 0.​01% a month ago. Money fund yields should jump higher again next month if, as expected, the Fed raises rates by another 50 bps. Whether bank deposits keep pace, and how much money begins flowing info money funds, are now the major questions in the space."

Our "ICI 2022 Fact Book" excerpts explain, "The Investment Company Institute released its '2022 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 reports that equity, bond fund and money market funds all saw assets increase nicely in 2021 (though 2022 year-to-date has been another matter). Overall, money funds assets were $4.756 trillion at year-end 2021, making up 17.6% of the $27.0 trillion in overall mutual fund assets. Retail investors held $1.480 trillion, while institutional investors held $3.276 trillion. We excerpt from the latest 'Fact Book' below."

It continues, "Discussing 'Worldwide' mutual funds (page 5), ICI writes, 'Money market funds -- which are generally defined throughout the world as regulated funds that are restricted to holding short-term, high-quality debt instruments -- saw their total net assets increase from $8.3 trillion to $8.8 trillion (6.2%). At year-end 2021, equity funds remained the largest category of worldwide regulated funds, accounting for 47% of net assets. Bond funds accounted for 19% of net assets, mixed/other funds for 21%, and money market funds for 12%.'

Our "BofE, FCA" piece states, "The Bank of England and Financial Conduct Authority published a discussion paper entitled, 'Resilience of Money Market Funds <i:https://www.fca.org.uk/publication/discussion/dp22-1.pdf>`_,' which reviews money funds in the U.K. and pending European money fund regulatory reforms. The paper says, 'This Discussion Paper (DP) is a contribution to an assessment of the vulnerabilities in MMFs and how much they contribute to risks to UK financial stability and investor protection. It aims to contribute to the debate about how to reduce such risks while also ensuring that the structure of the financial system and UK market support the needs of the real economy in a sustainable and robust way. It aims to gather views to inform the UK authorities’ development of MMF reform proposals, and where possible, to set out the UK authorities’ initial views on the possible effectiveness and proportionality of some reform options."

The paper continues, "In relation to MMFs, UK authorities aim to adopt policy measures following feedback received from this DP that will: i. Strengthen the resilience of MMFs and the financial system in supporting the UK economy. ii. Reduce the need for future extraordinary central bank interventions of the kind that occurred in March 2020 [and] iii. Support the provision of sustainable and robust cash management financial services that meet the needs of users including at times of financial stress."

MFI also includes the News brief, "Assets Down Slightly in May. MFI XLS shows assets falling $10.7 billion in May to $4.968 trillion (after falling $74.3 billion in April). ICI's weekly 'Money Market Fund Assets' shows assets flat after jumping the prior week (and declining 2 weeks before this)."

Another News brief, "May MF Portfolio Holdings: Treasuries Plummet, Time Deposits Higher. Our April 30 data show that Treasuries plunged again last month while Other (mostly Time Deposits) jumped. Repo remained the largest portfolio segment, while Treasuries remained in the No. 2 spot. (Fed repo inched higher to $1.662 trillion.) Agencies were the third largest segment, CP remained fourth, ahead of Other/Time Deposits, CDs and VRDNs."

A sidebar, "CAG's Pan on Prime MMFs," states, 'Capital Advisors Group’s Lance Pan asks, 'Will There Be a Renaissance for Prime Money Market Funds?.' He explains, 'April 11 marked the end of the comment period for the new round of money market fund (MMF) reforms proposed by the Securities and Exchange Commission (SEC). As the Fed is poised to hike rates aggressively in coming meetings, institutional cash investors are keenly aware that their deposit rates are not likely to keep pace. Might prime MMFs be an alternative? Will the amendments alter the utility and attractiveness of prime funds to institutional cash investors? Should investors plunge in before the new rules take effect?"

Finally, another sidebar, "Dreyfus' Tobin on Yields," explains, "Dreyfus recently hosted a webinar entitled, 'Money Market Funds, Rising Rates and Geopolitical Turmoil,' which featured CIO John Tobin and Credit Head Keith Lawler discussing rising rates, Treasury funds and bank deposits. Tobin tells us, 'I think the reason you're seeing a lot of dispersion is one, fund positioning, [and, two] cash flows. [Y]ou saw several funds extend in late Feb. and early March. [This was] still when ... we thought we were just going to get a series of 25's. [I]n a pretty dramatic twist or, ... hawkish pivot all of a sudden, this idea of going 50 and maybe multiple 50 [bps became the consensus] ... with the backdrop of, hey, we need to hit neutral rates by year end at a minimum. [It was an] unbelievable change of events in a matter of two months. So that's why I think you've seen as much dispersion in performance as we have ever seen."

Our June MFI XLS, with May 31 data, shows total assets decreased $10.7 billion to $4.968 trillion, after decreasing $74.3 billion in April, increasing $24.1 billion in March, decreasing $34.6 billion in February and decreasing $128.1 billion in January. Assets increased $104.6 billion in December, $49.7 billion in November and $20.5 billion October. MMFs also increased $878 million in September and $27.9 billion in August. Our broad Crane Money Fund Average 7-Day Yield was up 29 bps to 0.43%, and our Crane 100 Money Fund Index (the 100 largest taxable funds) was up 36 bps to 0.57% 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 0.72% and 0.79%, respectively. Charged Expenses averaged 0.29% and 0.22% for the Crane MFA and the Crane 100. (We'll revise expenses Wednesday once we upload the SEC's Form N-MFP data for 5/31/22.) The average WAM (weighted average maturity) for the Crane MFA was 25 days (down 1 day from previous month) while the Crane 100 WAM stayed at 26 days. (See our Crane Index or craneindexes.xlsx history file for more on our averages.)

May 06
 

The May issue of our flagship Money Fund Intelligence newsletter, which was sent to subscribers Friday morning, features the articles: "Comments to SEC on MMF Reforms Support Liquidity Fee," which discusses the feedback on pending regulatory changes; "Fidelity Letter Blasts SEC on Swing Pricing, Negative Yields," which quotes from the largest fund manager's feedback to the Commission; and, "Earnings Reports Show Fee Waivers Retreating in Q1'22," which reviews the latest reports on the return of fees in MMFs. We also sent out our MFI XLS spreadsheet Friday morning, and we've updated our database with 4/30/22 data. Our May Money Fund Portfolio Holdings are scheduled to ship on Tuesday, May 10, and our May Bond Fund Intelligence is scheduled to go out on Friday, May 13. (Note: Our MFI, MFI XLS and Crane Index products are all available to subscribers via our Content center.)

MFI's "Comments article says, "The big news over the past month was the release of most of the major 'Comments on Money Market Fund Reform' sent to the SEC in response to its Money Fund Reform Proposal. Following the April 11 deadline, dozens of letters were posted, including entries from 17 of the 20 largest managers of MMFs. Click on the name for comments from each of the managers here: Fidelity (see article), BlackRock, Vanguard, J.P. Morgan, Federated Hermes, Morgan Stanley, Dreyfus, Northern, Allspring, SSGA, American Funds, Schwab, First American, Invesco, T. Rowe Price, HSBC and Western. (Goldman Sachs, UBS and DWS didn't submit letters.)

It continues, "ICI's letter, which reflects most fund managers' thoughts, tells us, 'Any new reforms for money market funds should be measured and appropriately calibrated, taking into account data, the costs and benefits these funds provide to investors, the economy, and the short-term funding markets.... We strongly disagree with the proposed swing pricing requirement (and the related proposed disclosure and reporting requirements). Swing pricing fails to reflect how money market funds are managed, would not advance the SEC's goals of enhancing money market fund resiliency and by extension financial stability, would likely strip money market funds of features that are key to investors ... and would impose excessive costs to overcome unnecessary and complex structural challenges. Indeed, swing pricing will fundamentally alter the product and its appeal ..., cause fund sponsors to stop offering the product, and is neither supported by the data nor necessary."

Our "Fidelity Letter" excerpts explain, "Fidelity's comment, written by Chief Legal Officer Cynthia Lo Bessette, tells us, 'Fidelity Investments appreciates the opportunity to provide comments to the Securities and Exchange Commission on its proposed rule and form amendments relating to money market funds.... [S]tresses highlighted certain vulnerabilities in segments of the money market fund industry as well as the need to reconsider certain aspects of Rule 2a-7. Fidelity is encouraged that the SEC has sought to solve for these vulnerabilities in the Proposal by bolstering liquidity requirements and by reevaluating its prior support for temporary suspensions of redemptions (commonly referred to as 'gates')."

It continues, "Fidelity is also encouraged that the SEC did not propose other, more pernicious, reform options that would significantly disrupt the money market fund industry and, in turn, the smooth functioning of the capital markets. It is evident that the SEC, at least in portions of the Proposing Release, accounted for the feedback provided by the industry in response to the report of the President's Working Group on Financial Markets (the 'PWG') on potential reform options for money market funds."

Our "Earnings" piece states, "The latest batch of quarterly earnings calls and reports offers a glimpse into the state of fee waivers, which have begun falling precipitously (and should be almost gone in the current quarter). BlackRock CFO Gary Shedlin comments, 'We incurred approximately $75 million of gross discretionary yield support waivers in the first quarter. However, waivers for our flagship funds were essentially removed following rate hikes ... in March. Recall that approximately 50% of gross fee waivers are generally shared with distributors, so the benefit to base fees is partially offset by higher distribution expense."

Shedlin also tells us, "BlackRock's cash management platform saw net outflows of $27 billion, driven by redemptions from offshore prime and U.S. government MMFs, in line with the broader industry. BlackRock has steadily grown our share of the cash management industry by leveraging our scale and delivering innovative distribution and risk management solutions for clients."

MFI also includes the News brief, "Fed Hikes by 50 Bps; MMF Yields Poised to Surge Towards 1.0%." It quotes the Fed's Statement, "[T]he Committee decided to raise the target range for the federal funds rate to 3/4 to 1 percent and anticipates that ongoing increases in the target range will be appropriate." Our Crane 100 Index yields 0.21%, but should move over 0.50% within days and towards 0.70% in weeks.

Another News brief, "April Portfolio Holdings: Fed Repo Jumps; Treasuries, TDs Plunge," tells us, "Our March 31 data shows that Repo jumped while Treasuries and Other (Time Deposits) plunged last month. Repo remained the largest segment, while Treasuries remained No. 2. (MMF holdings of Fed repo surged to $1.651 trillion.) Agencies were the third largest segment, CP remained fourth, ahead of CDs, Other/Time Deposits and VRDNs."

Finally, a sidebar, "WSJ: Managers Shift to Cash," explains, "The Wall Street Journal writes about 'cash' in 'Wall Street Finds New Value in Cash as Global Fears Weigh on Markets.' The article says, 'Worries about the war in Ukraine, China's Covid-19 outbreak, a U.S. or European recession and surging global inflation are making a long-spurned asset increasingly popular with Wall Street's top money managers these days: cash. As stock and bond prices have retreated from records in the tumult of headlines, more asset managers said they are looking to move funds into low-​risk, cash-like assets."

Our May MFI XLS, with April 30 data, shows total assets decreased $74.3 billion to $4.974 trillion, after increasing $24.1 billion in April, decreasing $34.6 billion in February and decreasing $128.1 billion in January. Assets increased $104.6 billion in December, $49.7 billion in November and $20.5 billion October. MMFs also increased $878 million in September and $27.9 billion in August. Our broad Crane Money Fund Average 7-Day Yield was up 5 bps to 0.14%, and our Crane 100 Money Fund Index (the 100 largest taxable funds) was up 6 bps to 0.21%. (Yields should jump today and begin reflecting Wednesday's Fed hike.)

On a Gross Yield Basis (7-Day) (before expenses are taken out), the Crane MFA and the Crane 100 both were both higher at 0.40% and 0.42%, respectively. Charged Expenses averaged 0.26% and 0.20% for the Crane MFA and the Crane 100. (We'll revise expenses Monday once we upload the SEC's Form N-MFP data for 4/30/22.) The average WAM (weighted average maturity) for the Crane MFA was 26 days (down 2 days from previous month) while the Crane 100 WAM fell to 26 days. (See our Crane Index or craneindexes.xlsx history file for more on our averages.)

May 04
 

With the weather getting warmer and the conference business rebounding, Crane Data is ramping up preparations for its big show. Crane's Money Fund Symposium, the largest gathering of money market fund managers and cash investors in the world, will take place June 20-22, 2022 at The Hyatt Regency Minneapolis, in Minneapolis, Minn. (Note that we're starting on the Juneteenth Holiday, but we're unable to move the dates.) The agenda is all set and registrations are still being taken. Money Fund Symposium attracts money fund managers, marketers and servicers, cash investors, money market securities dealers, issuers, and regulators for 2 1/2 days of sessions, socializing and networking. We review the latest agenda, as well as Crane Data's other 2022 conferences, below.

Our MF Symposium Agenda kicks off on Monday, June 20 with a "Keynote: The Brave New World in Liquidity" featuring Joe Sullivan and Yeng Felipe Butler of Allspring Global Investments (formerly Wells Fargo Funds). The rest of the Day 1 Agenda includes: "Strategists Speak '22: Fed, Rates & Reforms," with Vanessa Hubbard McMichael of Wells Fargo Securities and Priya Misra of TD Securities; a "Corporate Investors, Portals, D&I Discussion" with Laurie Brignac of Invesco, Tory Hazard of Institutional Cash Distributors and Tom Hunt of AFP; and, a "Major Money Fund Issues 2022" panel with moderator Peter Crane of Crane Data, Deborah Cunningham of Federated Hermes, John Tobin of Dreyfus and Peter Yi of Northern Trust AM. (The evening's reception is sponsored by Nearwater Capital.)

Day 2 of Money Fund Symposium 2022 begins with "Treasury Issuance & Fed Repo Update," which features Mark Cabana of BofA Securities, Dina Marchioni of the Federal Reserve Bank of NY and Tom Katzenbach of the U.S. Deptartment of the Treasury; followed by a "Senior Portfolio Manager Perspectives" panel with Linda Klingman of Charles Schwab I.M., Nafis Smith of Vanguard and Jeff Plotnik of U.S. Bancorp Asset Mgmt. These sessions are followed by "Government Money Fund & Repo Issues," with Joseph Abate of Barclays, Mike Bird of Allspring Funds and Geoff Gibbs of DWS. The morning concludes with a "Muni & Tax Exempt Money Fund Update," featuring Colleen Meehan of Dreyfus, John Vetter of Fidelity and Sean Saroya and David Elmquist of J.P. Morgan Securities.

The Afternoon of Day 2 (after a Dreyfus-sponsored lunch) features the segments: "Dealer's Choice: Supply, New Securities & CP" with Rob Crowe of Citi Global Markets, John Kodweis of J.P. Morgan and Stewart Cutler of Barclays; "Ratings Focus: Governance, Global & LGIPs" with Robert Callagy of Moody's Investors Service, Greg Fayvilevich of Fitch Ratings, and Michael Masih of S&P Global Ratings; "Ultra-Short Bond & European MMF Update," with Rob Sabatino of UBS Asset Mgmt., Teresa Ho of J.P. Morgan and Dennis Gepp of Federated. The day's wrap-up presentation is "Brokerage Sweeps, AMAs & Deposit Issues" involving Chris Melin of Ameriprise Financial and Michael Berkowitz of Citi Treasury & Trade Solutions. (The Day 2 reception is sponsored by Barclays.)

The third day of the Symposium features the sessions: "The State of the Money Fund Industry" with Peter Crane of Crane Data, Michael Morin of Fidelity Investments and Pia McCusker of SSGA; "Regulations: Money Fund Reforms Round III," with Brenden Carroll of Dechert LLP and Clair Pagnano of K&L Gates LLP; a session, "FICC Repo Update & Repo Trading Platforms with Jeff Sowell of State Street and Sal Giglio of GLMX; and lastly, a session on "Money Fund Statistics, Software & Disclosures.

Visit the MF Symposium website at www.moneyfundsymposium.com) for more details. Registration is $750, and discounted hotel reservations are still available. We hope you'll join us in Minneapolis in June! E-mail us at info@cranedata.com to request the full brochure.)

We are also starting preparations for our next European Money Fund Symposium, which is scheduled for Sept. 27-28, 2022, in Paris, France. European Money Fund Symposium offers "offshore" money fund portfolio managers, and money market investors, issuers, dealers and service providers a concentrated and affordable educational experience, as well as an excellent and informal networking venue. Our mission is to deliver the best possible conference content at an affordable price. Attendee registration for our 2022 European Money Fund Symposium is $1,000 (USD). (We're still looking for speakers and sponsors for this event, so contact us for details.)

Also, mark your calendars for our next Crane's Money Fund University, which will be held in Boston, Mass., December 15-16, 2022. 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. Money Fund University's comprehensive program is good for both beginners and experienced professionals looking for a refresher.

Finally, our Bond Fund Symposium 2023 will also be held in Boston, Mass., on March 23-24, 2023. (Click here to see the agenda.) Bond Fund Symposium is the only conference devoted entirely to bond mutual funds, bringing together bond fund managers, marketers, and professionals with fixed-income issuers, investors and service providers. The majority of the content is aimed at the growing ultra-short and conservative ultra-short bond fund marketplace.

Let us know if you'd like more details on any of our events, and we hope to see you in in Minneapolis in June, in Paris in September or in Boston in December (or in March 2023). Thanks to all of our speakers and sponsors and for your patience and support over the past two rough years!

Apr 07
 

The April issue of our flagship Money Fund Intelligence newsletter, which was sent to subscribers Thursday morning, features the articles: "Yields Move Higher After First Fed Hike; More to Come," which discusses the jump in MMF yields in March; "Bond Fund Symposium Highlights: Carnage in Q1," which quotes from our latest ultra-short bond fund event; and, "Worldwide MF Assets Jump in Q4'21, Led by US, Ireland," which reviews the latest statistics on money market funds domiciled outside the U.S. We also sent out our MFI XLS spreadsheet Thursday morning, and we've updated our database with 3/31/22 data. Our April Money Fund Portfolio Holdings are scheduled to ship on Monday, April 11, and our March Bond Fund Intelligence is scheduled to go out on Thursday, April 14. (Note: Our MFI, MFI XLS and Crane Index products are all available to subscribers via our Content center.)

MFI's "Yields Move article says, "It's been 3 weeks since the Federal Reserve raised its Fed funds rate off of the zero floor, but money funds are already talking about 2% yields. Yields jumped in March, rising from 0.02%, where they'd been for 2 years, to 0.15% on average (as measured by our Crane 100 Index). They now reflect just over half of the 25 bps rate increase, but may not move much more due to fee waivers being reduced. Still, net yields have been surprisingly strong. Given expectations of a 50 bps hike, yields should move higher still next month."

It continues, "The Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 741), shows a 7-day yield of 0.09% (as of 3/31/22), up 7 bps in March. Prime Inst MFs were up 13 bps to 0.17% in the past month, while Government Inst MFs rose 8 bps to 0.10%. Treasury Inst MFs rose 9 bps to 0.10%, while Treasury Retail MFs rose just one bp to 0.02%. Government Retail MFs also now yield 0.02% (up 1 bp), but Prime Retail MFs yield 0.09% (up 8 bps for March). Tax Exempt MF 7-​day yields jumped 13 bps to 0.15%."

Our "BFS" update reads, "Crane Data recently hosted its Bond Fund Symposium event in Newport Beach, Calif., which brought together ultra-short bond fund managers, issuers, dealers and investors to discuss a number of short-term fixed-income topics. Thanks again to those who attended and supported BFS! Attendees and Crane Data subscribers may access the Powerpoints, recordings and conference materials via our Bond Fund Symposium 2022 Download Center."

The piece says, "The opening session, 'State of the Bond Fund Marketplace,' featured the Investment Company Institute's Shelly Antoniewicz and Crane Data's Peter Crane. Antoniewicz comments, 'For years and years, we had bond prices rising, rates falling, strong capital gains on bond funds and very, very strong inflows. Then all of a sudden, everything turned around. We had very small capital losses last year on bond funds. Flows sort of held up.... But moving into this year, we had much deeper capital losses on bond funds and flows are turning negative.'"

Our "Worldwide" piece states, "The Investment Company Institute published, 'Worldwide Regulated Open-Fund Assets and Flows, Fourth Quarter 2021,' which shows that money fund assets globally surged by $383.0 billion, or 4.5%, in Q4'21 to $8.833 trillion. The big increase was driven by gains in money funds in the U.S., Ireland, Luxembourg and China. Meanwhile, money funds in Brazil, Korea and Japan decreased. MMF assets worldwide increased by $519.0 billion, or 6.2%, in the 12 months through 12/31/21, and money funds in the U.S. represent 53.8% of worldwide assets. We review the latest Worldwide MMF totals, below."

It continues, "ICI's quarterly says, 'On a US dollar–denominated basis, equity fund assets increased by 5.6% to $33.64 trillion at the end of the fourth quarter of 2021. Bond fund assets increased by 0.6% to $13.72 trillion in the fourth quarter. Balanced fund assets increased by 3.3% to $8.78 trillion in the fourth quarter, while money market fund assets increased by 3.7% globally to $8.83 trillion."

MFI also includes the News brief, "MF Assets Rebound Slightly in March." It says, "Money fund assets rose $24.1 billion in March to $5.033 trillion, after 2 months of steep declines, according to our MFI XLS. YTD, MMFs are down by $138.6 billion, or -2.7%. ICI's latest 'Money Market Fund Assets' shows assets jumping $29.7 billion to $4.590 trillion in the latest week after being flat the previous week and falling sharply the two weeks prior."

Another News brief, "Mass's Galvin Warns on Sweeps." It explains, "The Secretary of the Commonwealth of Massachusetts, William Galvin, issued a release entitled, 'With Rates Rising, Galvin Investigates Whether Investors Are Being Shortchanged,' which warns brokerages about low rates paid on sweep accounts."

Another News brief, "Fed Z.1 Shows Big Jump in Household & Business MMF Assets in Q4," tells readers, "The Federal Reserve's latest quarterly 'Z.1 Financial Accounts of the United States,' statistical survey shows that Total MMF Assets increased by $186 billion to $5.206 trillion in Q4'21. The Household Sector, by far the largest investor segment with $2.944 trillion, saw the biggest asset increase in Q4. The second largest segment, Nonfinancial Corporate Businesses, also experienced a jump in assets."

Our April MFI XLS, with March 31 data, shows total assets increased $24.1 billion to $5.033 trillion, after decreasing $34.6 billion in February and $128.1 billion in January. Assets increased $104.6 billion in December, $49.7 billion in November and $20.5 billion October. MMFs also increased $878 million in September and $27.9 billion in August. Assets decreased $12.4 billion in July and $73.0 billion in June. Our broad Crane Money Fund Average 7-Day Yield was up 7 bps to 0.09%, and our Crane 100 Money Fund Index (the 100 largest taxable funds) was up 13 bps to 0.15%.

On a Gross Yield Basis (7-Day) (before expenses are taken out), the Crane MFA and the Crane 100 both were both higher at 0.21% and 0.26%, respectively. Charged Expenses averaged 0.12% for the Crane MFA and the Crane 100. (We'll revise expenses Friday once we upload the SEC's Form N-MFP data for 3/31/22.) The average WAM (weighted average maturity) for the Crane MFA was 29 days (up 2 days from previous month) while the Crane 100 WAM remained at 29 days. (See our Crane Index or craneindexes.xlsx history file for more on our averages.)