Money Fund Intelligence XLS

Money Fund Intelligence XLS Sample

Crane Data released its October Money Fund Portfolio Holdings Friday, and our most recent collection, with data as of September 30, 2020, shows a decrease in every category except VRDNs last month. Money market securities held by Taxable U.S. money funds (tracked by Crane Data) decreased by $94.3 billion to $4.772 trillion last month, after decreasing $12.7 billion in August, $83.1 billion in July and $159.1 billion in June. Money market securities increased $31.6 billion in May, and a staggering $529.4 billion in April and $725.6 billion in March. Treasury securities remained the largest portfolio segment, followed by Repo, then Agencies. CP remained fourth, ahead of CDs, Other/Time Deposits and VRDNs. Below, we review our latest Money Fund Portfolio Holdings statistics. (Visit our Content center to download the latest files, or contact us to see our latest Portfolio Holdings reports.)

Among taxable money funds, Treasury securities decreased by $6.3 billion (-0.25%) to $2.461 trillion, or 51.6% of holdings, after increasing $3.1 billion in August, decreasing $79.9 billion in July and increasing $60.8 billion in June. Repurchase Agreements (repo) decreased by $6.7 billion (-64%) to $1.041 trillion, or 21.8% of holdings, after increasing $60.8 billion in August, increasing $40.0 billion in July, and decreasing $124.3 billion in June. Government Agency Debt decreased by $28.1 billion (-3.5%) to $768.4 billion, or 16.1% of holdings, after decreasing $37.6 billion in August, $45.1 billion in July and $65.2 billion in June. Repo, Treasuries and Agencies totaled $4.271 trillion, representing a massive 89.5% of all taxable holdings.

Money funds' holdings of CP, CDs and Other (mainly Time Deposits) fell in September, breaking below the $500 billion level for the first time since December 2018, while VDRNs saw assets increase. Commercial Paper (CP) decreased $11.6 billion (-4.8%) to $231.9 billion, or 4.9% of holdings, after decreasing $32.5 billion in August, $10.7 billion in July and $6.5 billion in June. Certificates of Deposit (CDs) fell by $20.8 billion (-11.8%) to $156.1 billion, or 3.3% of taxable assets, after decreasing $19.0 billion in August, $12.3 billion in July and $9.1 billion in June. Other holdings, primarily Time Deposits, decreased $21.0 billion (-18.2%) to $94.6 billion, or 2.0% of holdings, after increasing $15.3 billion in August, $22.3 billion in July and decreasing by $13.7 billion in June. VRDNs increased to $94.6 billion, or 0.4% of assets, from $19.1 billion the previous month. (Note: This total is VRDNs for taxable funds only. We will publish Tax Exempt MMF holdings separately late Tuesday.)

Prime money fund assets tracked by Crane Data dropped $149.0 billion to $987.0 billion, or 20.7% of taxable money funds' $4.772 trillion total. Among Prime money funds, CDs represent 15.8% (up from 15.6% a month ago), while Commercial Paper accounted for 23.5% (up from 21.4%). The CP totals are comprised of: Financial Company CP, which makes up 14.3% of total holdings, Asset-Backed CP, which accounts for 5.3%, and Non-Financial Company CP, which makes up 3.9%. Prime funds also hold 6.4% in US Govt Agency Debt, 27.5% in US Treasury Debt, 5.0% in US Treasury Repo, 0.6% in Other Instruments, 5.6% in Non-Negotiable Time Deposits, 4.9% in Other Repo, 6.4% in US Government Agency Repo and 1.0% in VRDNs.

Government money fund portfolios totaled $2.616 trillion (54.8% of all MMF assets), up $111.0 billion from $2.505 trillion in August, while Treasury money fund assets totaled another $1.170 trillion (24.5%), down from $1.226 trillion the prior month. Government money fund portfolios were made up of 27.0% US Govt Agency Debt, 11.7% US Government Agency Repo, 46.1% US Treasury debt, 14.9% in US Treasury Repo, 0.2% in VRDNs and 0.1% in Investment Company . Treasury money funds were comprised of 84.1% US Treasury Debt and 15.8% in US Treasury Repo. Government and Treasury funds combined now total $3.786 trillion, or 79.3% of all taxable money fund assets.

European-affiliated holdings (including repo) decreased by $33.5 billion in September to $626.4 billion; their share of holdings fell to 13.1% from last month's 13.6%. Eurozone-affiliated holdings fell to $430.0 billion from last month's $456.7 billion; they account for 9.0% of overall taxable money fund holdings. Asia & Pacific related holdings decreased $21.1 billion to $227.0 billion (4.8% of the total). Americas related holdings fell $37.0 billion to $3.915 trillion and now represent 82.0% of holdings.

The overall taxable fund Repo totals were made up of: US Treasury Repurchase Agreements (up $29.9 billion, or 5.0%, to $623.4 billion, or 13.1% of assets); US Government Agency Repurchase Agreements (down $22,9 billion, or -5.8%, to $369.4 billion, or 7.7% of total holdings), and Other Repurchase Agreements (down $13.7 billion, or -22.2%, from last month to $48.0 billion, or 1.0% of holdings). The Commercial Paper totals were comprised of Financial Company Commercial Paper (down $2.0 billion to $141.5 billion, or 3.0% of assets), Asset Backed Commercial Paper (down $3.2 billion to $52.3 billion, or 1.1%), and Non-Financial Company Commercial Paper (down $6.4 billion to $38.2 billion, or 0.8%).

The 20 largest Issuers to taxable money market funds as of Sept. 30, 2020, include: the US Treasury ($2,477.9 billion, or 51.9%), Federal Home Loan Bank ($460.7B, 9.7%), Fixed Income Clearing Co ($144.9B, 3.0%), BNP Paribas ($132.9B, 2.8%), Federal National Mortgage Association ($113.7B, 2.4%), Federal Farm Credit Bank ($98.3B, 2.1%), RBC ($96.7B, 2.0%), JP Morgan ($92.7B, 1.9%), Federal Home Loan Mortgage Co ($74.7B, 1.6%), Barclays ($64.0B, 1.3%), Mitsubishi UFJ Financial Group Inc ($62.3B, 1.3%), Credit Agricole ($50.5B, 1.1%), Citi ($47.9B, 1.0%), Sumitomo Mitsui Banking Co ($47.0B, 1.0%), Societe Generale ($42.3B, 0.9%), Toronto-Dominion Bank ($39.5B, 0.8%), Bank of Montreal ($37.5B, 0.8%), Bank of America ($37.5B, 0.8%), HSBC ($31.9B, 0.7%) and Canadian Imperial Bank of Commerce ($28.5B, 0.6%).

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: Fixed Income Clearing Co ($144.8B, 13.9%), BNP Paribas ($120.8B, 11.6%), JP Morgan ($83.1B, 8.0%), RBC ($78.8B, 7.6%), Barclays ($46.6B, 4.5%), Credit Agricole ($42.6B, 4.1%), Mitsubishi UFJ Financial Group ($42.4B, 4.1%), Citi ($39.4B, 3.8%), Bank of America ($35.5B, 3.4%) and Societe Generale ($32.9B, 3.2%).

The 10 largest issuers of "credit" -- CDs, CP and Other securities (including Time Deposits and Notes) combined -- include: Toronto-Dominion Bank ($23.7B, 5.6%), Mitsubishi UFJ Financial Group ($19.9B, 4.7%), RBC ($17.9B, 4.2%), Barclays ($17.4B, 4.1%), Mizuho Corporate Bank Ltd ($17.3B, 4.1%), Sumitomo Mitsui Trust Bank ($16.3B, 3.9%), Credit Suisse ($12.2B, 2.9%), Canadian Imperial Bank of Commerce ($12.0B, 2.8%) and BNP Paribas ($12.0B, 2.8%).

The 10 largest CD issuers include: Sumitomo Mitsui Banking Co ($14.2B, 9.1%), Mitsubishi UFJ Financial Group Inc ($14.1B, 9.0%), Sumitomo Mitsui Trust Bank ($10.2B, 6.6%), Bank of Montreal ($10.2B, 6.5%), Mizuho Corporate Bank Ltd ($9.5B, 6.1%), Canadian Imperial Bank of Commerce ($7.7B, 4.9%), Toronto-Dominion Bank ($7.2B, 4.6%), Credit Suisse ($7.1B, 4.5%), Svenska Handelsbanken ($5.9B, 3.7%) and Credit Mutuel ($5.2B, 3.3%).

The 10 largest CP issuers (we include affiliated ABCP programs) include: Toronto-Dominion Bank ($16.2B, 8.0%), RBC ($10.3B, 5.1%), JP Morgan ($9.6B, 4.8%), Societe Generale ($8.3B, 4.1%), Citi ($7.6B, 3.8%), BNP Paribas ($7.5B, 3.7%), BPCE SA ($7.0B, 3.5%), NRW.Bank ($6.6B, 3.3%), Sumitomo Mitsui Trust Bank ($6.1B, 3.0%) and Toyota ($5.3B, 2.6%).

The largest increases among Issuers include: Fixed Income Clearing Corp (up $31.7B to $144.9B), US Treasury (up $10.4B to $2,477.9B), Barclays PLC (up $4.3B to $64.0B), BNP Paribas (up $3.7B to $132.9B), HSBC (up $3.4B to $31.9B), ABN Amro Bank (up $2.9B to $17.4B), Deutsche Bank AG (up $1.7B to $19.0B), JP Morgan (up $1.5B to $92.7B), Rabobank (up $1.4B to $9.8B) and Natixis (up $1.0B to $25.5B).

The largest decreases among Issuers of money market securities (including Repo) in September were shown by: the Federal Home Loan Bank (down $30.7B to $460.7B), Credit Agricole (down $22.5B to $50.5B), Federal Home Loan Mortgage Corp (down $9.6B to $74.7B), Mizuho Corporate Bank Ltd (down $8.2B to $26.7B), DNB ASA (down $7.9B to $8.1B), Bank of Nova Scotia (down $6.4B to $20.2B), Citi (down $5.9B to $47.9B), RBC (down $5.8B to $96.7B), Mitsubishi UFJ Financial Group Inc (down $5.6B to $62.3B) and Canadian Imperial Bank of Commerce (down $4.2B to $28.5B).

The United States remained the largest segment of country-affiliations; it represents 77.1% of holdings, or $3.679 trillion. France (5.8%, $276.0B) was number two, and Canada (4.9%, $235.3B) was third. Japan (4.5%, $216.3B) occupied fourth place. The United Kingdom (2.6%, $125.5B) remained in fifth place. The Netherlands (1.3%, $59.7B) was in sixth place, followed by Germany (1.2%, $58.1B), Sweden (0.7%, $31.1B), Switzerland (0.6%, $30.0B) and Australia (0.6%, $26.2B). (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 September 30, 2020, Taxable money funds held 35.7% (down from 36.0%) of their assets in securities maturing Overnight, and another 9.5% maturing in 2-7 days (up from 6.9% last month). Thus, 45.2% in total matures in 1-7 days. Another 14.3% matures in 8-30 days, while 13.0% matures in 31-60 days. Note that close to three-quarters, or 72.5% of securities, mature in 60 days or less (down slightly from last month), the dividing line for use of amortized cost accounting under SEC regulations. The next bucket, 61-90 days, holds 9.6% of taxable securities, while 15.8% matures in 91-180 days, and just 2.2% matures beyond 181 days.

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Money Fund Intelligence XLS News

Jan 08
 

The January issue of our flagship Money Fund Intelligence newsletter, which was sent out to subscribers Friday morning, features the articles: "Highlights of '20: March Madness, Asset Surge, Rate Crash," which reviews one of the craziest years in money funds' 50-year history; "ICD Portal's Tory Hazard Keeps Focus on Clients, Tech," which profiles the leader of the largest independent MMF "portal"; and, "Top Money Funds of 2020; 12th Annual MFI Awards," which reviews the No. 1‐ranked funds based on 1‐year, 5‐year and 10‐year returns. We've also updated our Money Fund Wisdom database with December 31 statistics, and send out our MFI XLS spreadsheet Friday a.m. (MFI, MFI XLS and our Crane Index products are all available to subscribers via our Content center.) Our January Money Fund Portfolio Holdings are scheduled to ship on Tuesday, January 12, and our January Bond Fund Intelligence is scheduled to go out Friday, January 15.

MFI's lead article says, "Money fund assets jumped by 20% in 2020, the second year in a row, as yields plunged and businesses scrambled for cash in response to the coronavirus lockdown. Prime MMFs came under pressure and frozen money markets triggered Fed and Treasury assistance, while Government MMFs jumped by an eye-popping $1.1 trillion. Fee waivers and talk of further regulatory change became major topics, and trends toward social and ESG MMFs, and technology, continued from the prior year. Below, we take a look at the highlights of 2020, and also provide a brief outlook for 2021."

It continues, "Crane Data's numbers showed assets rose by $775.4 billion, or 19.6%, to end just over $4.7 trillion ($4.733T) in 2020. ICI's narrower asset collection settled at $4.297 trillion, up by $665 billion, or 18.3%.... After inching lower in 2019, yields plunged to zero in 2020. Our Crane 100 MF Index fell from 1.46% to 0.02%, while our broader Crane Money Fund Average fell from 1.32% to 0.02%.... Yields are expected to be flat in the New Year, though they could inch higher late in '21 if expectations for rising rates in 2022 or 2023 grow."

Our latest "Profile" piece reads, "This month, MFI interviews ICD CEO Tory Hazard. We ask him about San Francisco-based ICD's history in cash and discuss Prime funds, fee waiver pressures, current priorities, and ICD's outlook for the coming year. Hazard reminds us why money market funds are 'a valuable part of institutional investment portfolios in all yield environments,' and tells us that investors are 'looking for products that earn at least some yield.' Our Q&A follows."

MFI says, "Give us a little history. Hazard explains, "ICD has been solely focused on the treasury marketplace from day one. As an agnostic provider of money market funds and short-term investments for institutional investors, we bring institutional investors together with hundreds of investment products. ICD was founded by three money market fund sales executives over 17 years ago, in 2003. Prior to forming ICD, the founders were working for big banks and were relegated to offering only their respective banks’ funds, using primitive technology. They recognized the opportunity to create an independent marketplace of investment products that could be accessed through an investment portal. Their vision was to provide clients with the best products and services in the industry, and that remains our mission today."

Hazard continues, "I joined the company in 2009 and served as CFO, COO and President before becoming CEO in 2017. Coming in, my key focus was to continue scaling the business while extending the value of the firm's service and technology. We were the first portal company with operations in Europe. We were the first portal company to release a robust exposure analytics application. We led the portal industry in integrating treasury technologies, and we introduced the industry's first multi counterparty secure automated settlement solution. We'll be announcing more industry innovations in 2021. Today, we serve over 400 companies across 65 industries in 43 countries around the world."

The "12th Annual MFI Awards" article tells readers, "This issue recognizes the top performing money funds, ranked by total returns, for calendar year 2020, as well as the top funds for the past 5‐year and 10‐year periods. We present the funds below with our annual Money Fund Intelligence Awards. These are given to the No. 1‐ranked funds based on 1‐year, 5‐year and 10‐year returns, through Dec. 31, 2020, in each of our major fund categories -- Prime Institutional, Government Institutional, Treasury Institutional, Prime Retail, Government Retail, Treasury Retail and Tax‐Exempt."

The rankings begin, "The Top-Performing Prime Institutional fund (and fund overall) was BlackRock Cash Inst MMF SL (BRC01), which returned 0.94%, but Western Asset Prem Inst Liquid Res Capital (WAAXX) was first if restricted funds are excluded with a return of 0.69%. For Prime Retail funds, Wells Fargo MMF Prm (WMPXX) had the best return in 2020 (0.68%)."

The latest MFI also includes the News piece, "Assets Up Big in '20, But Flat in Dec.," which says, "Crane Data's MFI shows money fund assets down just $6.3 billion in December, but up by a huge $775.4 billion, or 19.6%, in 2020. ICI's weekly data series shows money fund assets up $665 billion, or 18.3%, in 2020, with Inst MMFs up $510 billion (22.5%) and Retail MMFs up $156 billion (11.4%). The gains in '20 almost match those of 2019, and are the biggest in dollar terms since 2008."

A second news brief entitled, "Northern Drops Other Prime Shoe, Exits Muni Too," explains, "Northern Funds, which exited the Prime Institutional money fund space earlier this year, filed to exit the Prime Retail and Municipal segments as well. The 11th largest money fund manager ($168.3 billion) holds 99.7% in Government assets. See the press release, 'Northern Trust Asset Management Announces Changes to Money Market Mutual Fund Suite.' Wells Fargo Funds also filed to merge its two Prime portfolios into one."

A third news brief, "Invesco Files for Cavu Securities Class" explains, "Invesco's Form N1-A registration for its Short-Term Investment Trust (STIT) says it will launch new 'CAVU Securities Classes' for Invesco Liquid Assets Portfolio, Invesco Treasury Portfolio and Invesco Government & Agency Portfolio. The filing says, 'This prospectus is to be used only by clients of CAVU Securities, LLC (CAVU). CAVU is a veteran and minority owned firm.'"

Our January MFI XLS, with December 31 data, shows total assets fell by $6.3 billion in December to $4.733 trillion, after decreasing $11.7 billion in November, $46.8 billion in October, $121.2 billion in September, $42.3 billion in August, $44.2 billion in July and $113.0 billion in June. Assets increased $31.6 billion in May, $417.9 billion in April and $688.1 billion in March. Our broad Crane Money Fund Average 7-Day Yield was unchanged at 0.02%, our Crane 100 Money Fund Index (the 100 largest taxable funds) also sits at 0.02%.

On a Gross Yield Basis (7-Day) (before expenses are taken out), the Crane MFA was down a basis point at 0.16% while the Crane 100 was down 2 basis points, also at 0.16%. Charged Expenses averaged 0.14% for both the Crane MFA and Crane 100. (We'll revise expenses on Monday once we upload the SEC's Form N-MFP data for 12/31.) The average WAM (weighted average maturity) for the Crane MFA and Crane 100 was 41 (unch.) and 46 days (up 2 days) respectively. (See our Crane Index or craneindexes.xlsx history file for more on our averages.)

Dec 28
 

With the coming of the New Year, Crane Data is ramping up preparations for its 2021 conference calendar. We'll be doing virtual events in January (Money Fund University on Jan. 21-22) and in March (Bond Fund Symposium, March 25-26). But we hope to return to live events by June. Crane's Money Fund Symposium, the largest gathering of money market fund managers and cash investors in the world, will take place June 23-25, 2021 at The Loews Philadelphia, in Philadelphia, Pa. The preliminary agenda is now available and registrations are now being taken. Money Fund Symposium attracts money fund managers, marketers and servicers, cash investors, money market securities dealers, issuers, and regulators. We review our preliminary agenda, as well as Crane Data's other 2021 conferences, below.

Our MF Symposium Agenda kicks off on Wednesday, June 23 with a keynote on "MMFs Adapting to Regulations, Tech & ESG" with Tom Callahan of BlackRock, Deborah Cunningham of Federated Investors and Peter Crane of Crane Data. The rest of the Day 1 Agenda includes: "Treasury Issuance & Repo Update," with Mark Cabana of BofA Securities, Dina Marchioni of Federal Reserve Bank of New York and Tom Katzenbach of the U.S. Treasury; a "Corporate Investor MF Discussion" with Tom Hunt of AFP; and, a "Major Money Fund Issues 2021" panel with moderator Ed Baldry of EPBComms, Tracy Hopkins of Dreyfus/BNY Mellon CIS, Rob Sabatino of UBS Asset Management, Jeff Weaver of Wells Fargo Asset Management. (The evening's reception is sponsored by Bank of America.)

Day 2 of Money Fund Symposium 2021 begins with "The State of the Money Fund Industry," which features Peter Crane, Michael Morin of Fidelity Investments and Peter Yi of Northern Trust Asset Management; followed by a "Senior Portfolio Manager Perspectives" panel, including Linda Klingman of Charles Schwab I.M. and Nafis Smith of Vanguard. Next up is "Government & Treasury Money Fund Issues," with Joseph Abate of Barclays as moderator, Adam Ackermann of J.P. Morgan Asset Management 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 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 moderator, Jeff Plotnik of U.S. Bancorp Asset Mgmt, Robe 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, ETFs & Alt-Cash Update," with Alex Roever of JPM and Laurie Brignac of Invesco. The day's wrap-up presentation is "Brokerage Sweeps, Bank Deposits & Fin-Tech" involving Chris Melin of Ameriprise Financial and Kevin Bannerton of Total Bank Solutions. (The Day 2 reception is sponsored by Barclays.)

The third day of the Symposium features the sessions: "Strategists Speak '20: Fed & Rates, Repo & SOFR" with Priya Misra of TD Securities and Garret Sloan of Wells Fargo Securities; "European, ESG & ETF Issues," with Brenden Carroll of Dechert LLP and Jonathan Curry of HSBC Global A.M.; "FICC Repo & Agency Roundtable" with Kyle Lynch of FHLBanks Office of Finance. Peter Crane wraps up the conference with the session "Money Fund Statistics & Disclosures.

Visit the MF Symposium website at www.moneyfundsymposium.com) for more details. Registration is $750, and discounted hotel reservations are available. We hope you'll join us in Philadelphia this June! We'll of course be watching the coronavirus and vaccine rollout, and will adjust plans if travel bans are still in place come late spring. Note that some of our speakers have yet to confirm their participation, and the agenda is still in the process of being finalized, so watch for tweaks in coming weeks. E-mail us at info@cranedata.com to request the full brochure.)

We're also making final preparations for Crane's Money Fund University, which will be held online, January 21-22, 2021. Our Money Fund University (Online) will cover 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. The latest agenda is available online and we are still accepting registrations ($250). (We're also willing to "comp" tickets for large Crane Data or sponsor clients, so let us know if you're interested.)

We're also getting ready for our next Crane's Bond Fund Symposium (Online), which will be held March 25-26. (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.

Crane Data, which recently celebrated the sixth anniversary of its Bond Fund Intelligence publication and BFI XLS bond fund information service and benchmarks, continues to expand its fixed income fund offerings with the recent launch of Bond Fund Wisdom product and Bond Fund Portfolio Holdings dataset. Bond Fund Symposium offers attendees a concentrated and affordable educational experience, as well as an excellent networking venue. Registration for Bond Fund Symposium is $250. Our mission is to deliver the best possible conference content at an affordable price to bond fund professionals and investors.

Finally, we've also set the dates and location for our next European Money Fund Symposium. It is scheduled for Oct. 21-22, 2021, in Paris, France. Let us know if you'd like more details on any of our events, and we hope to see you virtually in Q1, and live in Philadelphia and Paris later in 2021. Happy New Year!

Dec 21
 

As a reminder, we'll be hosting our annual "basic training" event, Crane's Money Fund University, on Jan. 21-22, 2021. This year's MFU will be online only (and $250 to attend), and will include two afternoons of live segments, as well as a number of pre-recorded sessions and access to recordings and binder materials. Money Fund University offers an affordable and comprehensive 2-day training on money market mutual funds. MFU 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. New portfolio managers, analysts, investors, issuers, service providers, and anyone interested in expanding their knowledge of "cash" investing will benefit from our comprehensive program. Even experienced professionals should enjoy this refresher course and the opportunity to interact with peers in an informal setting. Attendee registration is $250 and sponsorship opportunities are $1K, $2K, $3K and $5K. (Note: Thanks to those who attended our recent Money Fund Wisdom Demo & Training. If you missed it, you can catch the replay here.) Mark your calendars too for our upcoming Bond Fund Symposium, which will also be Online only and $250, March 25-26, 2021. Finally, given the arrival of a coronavirus vaccine, we also hope and plan to return to live in-person events by this summer! Our big show, Money Fund Symposium, is scheduled for June 23-25, 2021 in Philadelphia, and our European Money Fund Symposium is scheduled for October 21-22, 2021 in Paris, France. Please let us know if you'd like to see the PDF agendas for these events, or if you'd like to find out more information on sponsorships or "comp" attendance tickets. Thanks for your support and patience in 2020, Happy Holidays, and we hope to see you at one of our virtual or live events in 2021!

Dec 15
 

Northern Funds exited the Prime Institutional money fund space earlier this year, and it has now filed to exit the Prime Retail and Municipal segments as well. A press release from the 11th largest money fund manager with $168.3 billion (99.7% of which is Government), entitled, "Northern Trust Asset Management Announces Changes to Money Market Mutual Fund Suite," tells us, "Northern Trust Asset Management, which oversees $339 billion in liquidity and short-duration strategies globally as of Sept. 30, 2020, announced the following changes to its suite of money market mutual funds: The Northern Funds - Municipal Money Market Fund (NOMXX) and the Northern Institutional Funds - Municipal Portfolio (NMUXX) will both close to new investors on or about Jan. 11, 2021 [and liquidate] on or about Feb. 12, 2021; and, A proposed merger of the Northern Funds Money Market Fund (NORXX) into the Northern Funds - U.S. Government Money Market Fund (NOGXX), subject to shareholder approval. These fund lineup changes highlight a thoughtful progression by Northern Trust Asset Management to exit the prime and municipal money market mutual fund space, a process that began back in May 2020 with the closure of the institutional prime money market mutual fund, the Northern Institutional Funds - Prime Obligations Portfolio."

Northern's Jen Hoffenkamp comments, "Given our strongly held, long-term views on interest rates, coupled with shifting investor preferences and the potential for continued regulatory changes, appropriate action was needed with our money market mutual fund offering.... Our investment strategies are rooted in the foundational belief that investors should be compensated for the risks they take, and we are committed to delivering investment products and solutions that fit our investor-centric approach."

The release explains, "Northern Trust Asset Management anticipates that U.S. interest rates will remain anchored near zero for the foreseeable future. In a continued low interest rate environment, investors in municipal and prime money market mutual funds earn yields comparable to government money market funds."

Peter Yi adds, "In our opinion, the risk/reward profile for these investors has become misaligned.... Our view is that the constraints limiting municipal and prime money market mutual funds today will not improve significantly over time. The money market mutual fund landscape has fundamentally changed." The release states, "Generally, prime and municipal money market mutual funds have declined in assets, while government money market mutual funds have grown as they seek to preserve the principal stability and liquidity that investors value. 'Investor preferences have changed, but their liquidity needs remain the same,' Hoffenkamp said."

Northern adds, "For the foreseeable future, Northern Trust Asset Management views government money market mutual funds as the optimal solution for investors' operational cash needs. For intermediate (six-to-12-month) liquidity needs, the firm encourages clients to consider a cash segmentation strategy to take advantage of the value ultra-short fixed income products can provide."

Finally, they write, "While these changes affect prime and municipal money market mutual funds, Northern Trust Asset Management will continue to deliver these cash strategies to clients through customized solutions and other fund product types. Northern Trust Asset Management has helped liquidity investors navigate the ever-evolving liquidity landscape for more than 40 years. As one of the largest global cash managers, with a full liquidity suite serving individual and institutional investors, the firm offers a range of strategies, from municipal, prime and government cash management to ultra-short fixed income strategies."

For more on this latest news, see the Prospectus Supplement filing for the $232 million Northern Money Market Fund (NORXX), the filing for the $113 million Northern Municipal Money Market Fund (NOMXX) and the filing for the $184 million Northern Institutional Muni Money Market (NMUXX). For more on Prime and Municipal money fund exits this year, see these Crane Data News stories: Dreyfus Consolidates Money Funds, Sticks w/Prime; OFR Annual Report (11/19/20), BMO Liquidating Inst Prime MMF (11/17/20), SEC's Blass on Push for More MMF Reforms; Vanguard Liquidating PA, NJ (9/28/20), Fidelity to Liquidate Prime Instit Money Funds; Cites Investor Behavior (6/22/20) and Northern Liquidating Prime Obligs; NY Fed on PDCF; Weekly Port Holds (5/20/20).

In other news, Crane Data's latest MFI International shows that assets in European or "offshore" money market mutual funds moved higher over the past month. They broke above the $1.0 trillion for the first time ever three months ago, hitting a record $1.056 trillion in August. These U.S.-style funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, have increased by $28.1 billion over the last 30 days (when translated into dollars) and they're up by $158.8 billion (18.1%) year-to-date. Offshore US Dollar money funds, which broke over $500 billion in January, are down $481 million over the last 30 days but are up $24.5 billion YTD to $519.0 billion. Euro funds are up E15.0 billion over the past month, and YTD they're up E51.6 billion to E150.3 billion. GBP money funds have risen by L8.3 billion over 30 days, and are up by L32.5 billion YTD to L257.4B. U.S. Dollar (USD) money funds (191) account for half (50.1%) of the "European" money fund total, while Euro (EUR) money funds (94) make up 16.1% and Pound Sterling (GBP) funds (115) total 30.2%. We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers Monday), below.

Offshore USD MMFs yield 0.05% (7-Day) on average (as of 12/11/20), down from 1.59% on 12/31/19 and 2.29% at the end of 2018. EUR MMFs yield -0.65% on average, compared to -0.59% at year-end 2019 and -0.49% on 12/31/18. Meanwhile, GBP MMFs yielded 0.02%, down from 0.64% as of 12/31/19 and 0.64% at the end of 2018. (See our latest MFI International for more on the "offshore" money fund marketplace. Note that these funds are only available to qualified, non-U.S. investors.)

Crane's December MFII Portfolio Holdings, with data as of 11/30/20, show that European-domiciled US Dollar MMFs, on average, consist of 22.1% in Commercial Paper (CP), 15.0% in Certificates of Deposit (CDs), 17.6% in Repo, 32.3% in Treasury securities, 11.7% in Other securities (primarily Time Deposits) and 1.3% in Government Agency securities. USD funds have on average 33.5% of their portfolios maturing Overnight, 6.7% maturing in 2-7 Days, 12.9% maturing in 8-30 Days, 12.6% maturing in 31-60 Days, 12.6% maturing in 61-90 Days, 17.4% maturing in 91-180 Days and 4.3% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (42.5%), France (12.7%), Japan (8.1%), Canada (7.3%), Germany (5.0%), Sweden (4.2%), the U.K.(4.2%), the Netherlands (3.6%), Belgium (2.3%), Australia (2.2%), Switzerland (1.9%), Norway (1.3%), Singapore (1.1%) and Abu Dhabi (1.0%).

The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $181.7 billion (32.3% of total assets), Fixed Income Clearing Corp with $21.4B (3.8%), BNP Paribas with $18.3B (3.3%), Barclays PLC with $14.2B (2.5%), Mizuho Corporate Bank Ltd with $13.5B (2.4%), Credit Agricole with $13.0B (2.3%), Mitsubishi UFJ Financial Group Inc. with $12.5B (2.2%), RBC with $11.5B (2.1%), JP Morgan with $11.0B (2.0%) and Societe Generale with $10.6B (1.9%).

Euro MMFs tracked by Crane Data contain, on average 39.7% in CP, 17.9% in CDs, 23.7% in Other (primarily Time Deposits), 13.4% in Repo, 5.2% in Treasuries and 0.1% in Agency securities. EUR funds have on average 32.2% of their portfolios maturing Overnight, 6.9% maturing in 2-7 Days, 8.9% maturing in 8-30 Days, 18.7% maturing in 31-60 Days, 13.4% maturing in 61-90 Days, 13.6% maturing in 91-180 Days and 6.4% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (36.4%), Japan (11.0%), the U.S. (9.4%), Germany (7.8%), Sweden (5.0%), Belgium. (4.1%), the U.K. (3.6%), Switzerland (3.6%), China (3.5%), Canada (3.4%), the Netherlands (2.3%), Supranational (2.0%) and Austria (1.8%).

The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E8.3B (6.2%), BNP Paribas with E7.1B (5.3%), BPCE SA with E6.1B (4.5%), Societe Generale with E5.7B (4.2%), Republic of France with E5.6B (4.1%), Citi with E4.7B (3.5%), Mizuho Corporate Bank Ltd with E4.3B (3.2%), Credit Mutuel with E4.2B (3.1%), Mitsubishi UFJ FInancial Group with E3.7B (2.8%) and Sumitomo Mitsui Banking Corp with E3.6B (2.7%).

The GBP funds tracked by MFI International contain, on average (as of 11/30/20): 33.4% in CDs, 19.4% in CP, 23.2% in Other (Time Deposits), 21.8% in Repo, 1.9% in Treasury and 0.3% in Agency. Sterling funds have on average 38.9% of their portfolios maturing Overnight, 9.8% maturing in 2-7 Days, 5.8% maturing in 8-30 Days, 12.7% maturing in 31-60 Days, 12.2% maturing in 61-90 Days, 15.6% maturing in 91-180 Days and 5.0% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (20.3%), the U.K. (18.6%), Japan (17.1%), Canada (9.7%), the U.S. (5.0%), Sweden (4.4%), the Netherlands (4.2%), Germany (4.1%), Australia (2.8%), Spain (2.6%) and Abu Dhabi (2.4%).

The 10 Largest Issuers to "offshore" GBP money funds include: the UK Treasury with L17.7B (8.3%), Mizuho Corporate Bank Ltd with L11.0B (5.1%), BNP Paribas with L10.4B (4.9%), Mitsubishi UFJ Financial Group Inc with L10.0B (4.7%), Barclays PLC with L8.4B (3.9%), RBC with L8.3B (3.9%), Sumitomo Mitsui Banking Corp with L8.0B (3.7%), BPCE SA with L7.4B (3.4%), Agence Central de Organismes de Securite Social with L7.3B (3.4%) and Credit Agricole with L6.9B (3.2%).