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Money market fund assets fell in the latest week, their 9th decrease in the past 12 weeks. Since the last week in May, MMF assets have declined by $234.8 billion, after rising $1.155 trillion during March, April and the first half of May. ICI's latest weekly "Money Market Fund Assets" report says, "Total money market fund assets decreased by $20.82 billion to $4.55 trillion for the week ended Wednesday, August 12, the Investment Company Institute reported.... Among taxable money market funds, government funds decreased by $18.98 billion and prime funds decreased by $1.41 billion. Tax-exempt money market funds decreased by $428 million." ICI's stats show Institutional MMFs decreasing $17.2 billion and Retail MMFs decreasing $3.6 billion. Total Government MMF assets, including Treasury funds, were $3.677 trillion (80.7% of all money funds), while Total Prime MMFs were $756.3 billion (16.6%). Tax Exempt MMFs totaled $121.6 billion (2.7%). ICI shows Money fund assets up a still massive $923 billion, or 25.4%, year-to-date in 2020, with Inst MMFs up $757 billion (33.5%) and Retail MMFs up $165 billion (12.1%). Over the past 52 weeks, ICI's money fund asset series has increased by $1.2010trillion, or 35.8%, with Retail MMFs rising by $269 billion (21.2%) and Inst MMFs rising by $931 billion (44.6%). They explain, "Assets of retail money market funds decreased by $3.61 billion to $1.54 trillion. Among retail funds, government money market fund assets decreased by $597 million to $981.91 billion, prime money market fund assets decreased by $2.60 billion to $444.44 billion, and tax-exempt fund assets decreased by $415 million to $109.17 billion." Retail assets account for just over a third of total assets, or 33.7%, and Government Retail assets make up 63.9% of all Retail MMFs. ICI adds, "Assets of institutional money market funds decreased by $17.22 billion to $3.02 trillion. Among institutional funds, government money market fund assets decreased by $18.39 billion to $2.69 trillion, prime money market fund assets increased by $1.19 billion to $311.90 billion, and tax-exempt fund assets decreased by $13 million to $12.43 billion." Institutional assets accounted for 66.3% of all MMF assets, with Government Institutional assets making up 89.3% of all Institutional MMF totals.

Pensions & Investments writes, "Investors leaving money market safe havens." The piece claims, "As market volatility has eased, institutional investors are moving away from the safety of U.S. money market funds and moving back to more return-seeking investments. Data from Morningstar Inc. show that investors are taking initial steps away from money market funds, with assets in U.S.-domiciled funds dropping to $4.6 trillion at end of June from $4.75 trillion at the end of May. The trend is nascent. Money market balances remain higher than they were before the coronavirus pandemic took hold in the U.S. in mid-March. But industry sources said the decline shows that asset owners are growing more comfortable with risk. Meanwhile, money managers are waiving fees on their money market funds to maintain investors' yields above zero. The largest institutional money market funds in the U.S. are offering a seven-day yield in the 0.24% to 0.35% range, according to data provider Crane Data LLC." The article explains, "Sources said now some investors could be concerned about the possibility of negative rates in the U.S. and in the U.K. later this year with some investors rotating into higher-yielding fixed-income investments.... Investors said they are watching whether negative rates on money market funds could emerge later this year and whether any shift in rates would alter their cash management preferences.... Meanwhile, money market fund managers are trying to keep investors in their cash strategies. Dennis Gepp, managing director and CIO of cash at Federated Hermes Inc. in London said: 'I have to admit I was surprised — given where we stand with COVID — and the relatively long-term period of uncertainty ... how quickly a number of markets saw cash flow back to them.'"

We'll continue our nascent monthly webinar and virtual event series later this month with "Crane's Money Fund Webinar: Mini Fund Symposium, which will take place Wednesday, August 26 from 1-4pm Eastern. Please join us! Crane Data's Peter Crane will host a 3-hour series of sessions discussing money market mutual funds and money market securities. Segments will include: "The State of the Money Fund Industry," with Peter Crane; "Treasury Issuance, Fed & Repo Update," with BofA's Mark Cabana and Barclays' Joe Abate; "Regulatory & ESG Money Funds Update" with Dechert's Stephen Cohen; and "Major Money Fund Issues 2020" with Dreyfus/BNY Mellon's Tracy Hopkins, Fidelity's Michael Morin and J.P. Morgan A.M.'s John Tobin. A virtual "cocktail" party will follow. In late July, we hosted "Crane's Money Fund Webinar: Portfolio Manager Perspectives," which featured Federated Hermes' Sue Hill, Northern Trust Asset Management's Peter Yi and UBS Asset Management's David Walczak. (Click here to access the recording and click here to access the News coverage.) We also will be hosting a virtual event on "Alt-Cash" and Ultra-Short Bond Funds on Sept. 24 (1-4pm) and (likely) a virtual Money Fund Symposium on October 27 (1-4) (if we're forced to cancel our Minneapolis event). We're still holding out for our annual Crane's Money Fund Symposium, which is scheduled for October 26-28, 2020, at the Hyatt Regency Minneapolis. But we'll announce next week whether we're cancelling and moving this to June 28-29, 2021 or proceeding and doing a hybrid live and virtual event (we'll need some good news on the coronavirus real soon for this). The latest agenda is available and registrations are still being taken at: www.moneyfundsymposium.com, but we'll refund or credit for 2021 if we do indeed cancel. Finally, mark your calendars for our 2021 conferences (and keep your fingers crossed): Money Fund University, scheduled for Jan. 21-22, 2021 in Pittsburgh, Pa.; Bond Fund Symposium, scheduled for March 25-26, 2021, in Newport Beach, Calif.; and European Money Fund Symposium, scheduled for October 21-22, 2021 in Paris. We hope to see you on a webinar, or at a physical event, soon!

Money market fund yields continue to bottom out just above zero, as our flagship Crane 100 inched down another basis point in the last week to 0.07%. The Crane 100 Money Fund Index fell below the 1.0% level in mid-March and below the 0.5% level in late March. It is down from 1.46% at the start of the year and down from 2.23% at the beginning of 2019. Just under two-thirds of all money funds and just over a third of MMF assets have since landed on the zero yield floor, though many continue to show some yield. According to our Money Fund Intelligence Daily, as of Friday, 8/7, 541 funds (out of 850 total) yield 0.00% or 0.01% with assets of $1.762 trillion, or 35.7% of the total $4.930 trillion. There are 201 funds yielding between 0.02% and 0.10%, totaling $2.322 trillion, or 47.1% of assets; 99 funds yielded between 0.11% and 0.25% with $751.4 billion, or 15.2% of assets; 9 funds yielded between 0.26% and 0.50% with $94.7 billion in assets, or 1.9%. No funds yield over 0.50%. The Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 671), shows a 7-day yield of 0.04%, down a basis point in the week through Friday, 8/7. The Crane Money Fund Average is down 43 bps from 0.47% at the beginning of April. Prime Inst MFs were down a basis point to 0.10% in the latest week and Government Inst MFs were down a basis point at 0.04%. Treasury Inst MFs were also down a basis point at 0.03%. Treasury Retail MFs currently yield 0.01%, (unchanged in the last week), Government Retail MFs yield 0.01% (unchanged in the last week), and Prime Retail MFs yield 0.05% (unchanged), Tax-exempt MF 7-day yields were down a basis point at 0.03%. (Let us know if you'd like to see our latest MFI Daily.) Our Crane Brokerage Sweep Index, which hit the zero floor four months ago, remains at 0.01%. The latest Brokerage Sweep Intelligence, with data as of August 7, shows no changes in the last week. All of the major brokerages now offer rates of 0.01% for balances of $100K. No brokerage sweep rates or money fund yields have gone negative to date, but this could become a distinct possibility in coming weeks or months. Crane's Brokerage Sweep Index has been flat for the last 16 weeks at 0.01% (for balances of $100K). Ameriprise, E*Trade, Fidelity, Merrill Lynch, Morgan Stanley, Raymond James, RW Baird, Schwab, TD Ameritrade, UBS and Wells Fargo all currently have rates of 0.01% for balances at the $100K tier level (and almost every other tier too).

The Wall Street Journal writes "After Stockpiling Cash, Some Companies Are Looking to Spend," which tells us, "Companies have been stockpiling cash to navigate the coronavirus pandemic, and some are getting eager to spend it. Cash holdings of U.S. public companies amounted to $2.54 trillion during the latest reported quarter, up from $1.96 trillion at the end of 2019 and $1.86 trillion from the second quarter in 2019, according to S&P Global Market Intelligence. While it can be reassuring for finance chiefs to have ample cash and liquidity amid the economic downturn, many executives feel they need to put their companies' capital to work, using it to seize growth opportunities and generate returns for shareholders." The Journal article explains, "Microsoft Corp., with $136.5 billion, topped the list of America's cash-rich companies as of June 30, according to S&P. The software company could find use for some of that as it is in advanced talks to purchase the U.S. operations of video app TikTok. Other companies with significant cash and short-term investments include Google parent Alphabet Inc., with $121.1 billion, and car maker Ford Motor Co., with nearly $40 billion in the latest-reported quarter, S&P data show. Most companies have held back from spending on share-buyback programs and dividends since the beginning of the pandemic. Some businesses with strong cash holdings, such as cereal maker Kellogg Co., said they plan to focus on investing in their brands, capital expenditures and repaying debt." The piece adds, "Average cash holdings in the tech sector increased roughly twofold over the decade through 2019 to $9.95 billion, according to Bain & Co., a management consulting firm. By contrast, average cash holdings for the total S&P 500 increased 35% to $3.65 billion over the same period. Still, tech companies aren't making aggressive plays yet in this recession like they did during the credit crisis. 'Executive focus is on Covid-19 and managing through Covid-19,' said Adam Haller, a partner at Bain. 'So finding the executive bandwidth and mind share to focus on acquisitions is a big part of why you're not seeing M&A happen in tech right now.'"

Money market fund assets inched higher in the latest week, just their 3rd increase in the past 11 weeks. ICI's latest weekly "Money Market Fund Assets" report says, "Total money market fund assets increased by $5.20 billion to $4.58 trillion for the week ended Wednesday, August 5, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $4.90 billion and prime funds increased by $470 million. Tax-exempt money market funds decreased by $174 million." ICI's stats show Institutional MMFs increasing $4.0 billion and Retail MMFs increasing $1.2 billion. Total Government MMF assets, including Treasury funds, were $3.696 trillion (80.8% of all money funds), while Total Prime MMFs were $757.8 billion (16.6%). Tax Exempt MMFs totaled $122.0 billion (2.7%). ICI shows Money fund assets up a still massive $944 billion, or 26.0%, year-to-date in 2020, with Inst MMFs up $774 billion (34.2%) and Retail MMFs up $169 billion (12.3%). Over the past 52 weeks, ICI's money fund asset series has increased by $1.239 trillion, or 37.1%, with Retail MMFs rising by $272 billion (21.5%) and Inst MMFs rising by $967 billion (46.7%). (Crane Data's separate Money Fund Intelligence Daily series shows MMF assets down by $54.2 billion in July to $4.957 trillion. They fell back below $5.0 trillion on July 14.) They explain, "Assets of retail money market funds increased by $1.15 billion to $1.54 trillion. Among retail funds, government money market fund assets increased by $2.77 billion to $982.51 billion, prime money market fund assets decreased by $1.70 billion to $447.04 billion, and tax-exempt fund assets increased by $76 million to $109.58 billion." Retail assets account for just over a third of total assets, or 33.6%, and Government Retail assets make up 63.8% of all Retail MMFs. ICI adds, "Assets of institutional money market funds increased by $4.04 billion to $3.04 trillion. Among institutional funds, government money market fund assets increased by $2.13 billion to $2.71 trillion, prime money market fund assets increased by $2.17 billion to $310.71 billion, and tax-exempt fund assets decreased by $249 million to $12.44 billion." Institutional assets accounted for 66.4% of all MMF assets, with Government Institutional assets making up 89.4% of all Institutional MMF totals.

Moody's Investors Service published the paper, "Most recent intervention could mark a turning point for institutional prime funds." It tells us, "The US institutional prime money market fund's viability has come under pressure again, but now the skepticism is coming from within the industry. For the second time in 12 years, the US government has had to provide liquidity to the sector following extreme market volatility and a surge in investor withdrawal requests in March. The 2020 rescue came despite 2016 reforms designed to strengthen the funds. In the past, sponsors were willing to ride out market instability, because prime funds were a larger portion of AUM, generating significantly more revenue than government funds. However, investor attrition and low interest rates and credit spreads have diminished the funds' revenue advantage. Large sponsors are now exiting the product rather than risking having to support prime funds, and at least two large sponsors have announced closures of their institutional prime funds." Moody's explains, "The assets of prime funds are higher-yielding than those of government money market funds, and prime funds have historically been a more profitable product for fund sponsors based on larger assets under management and higher gross portfolio yields. However, prime fund revenue as a percentage of overall money market fund revenue has diminished over time, making the decision to exit the prime fund product now less impactful on a sponsor's total revenue than in the past. Since 2014 when prime funds accounted for around 74% of total money market fund revenue, their contribution has steadily decreased to an estimated 21% as of June 2020. Secondly, the absolute yield of prime funds as well as the yield advantage of prime funds over government funds has been smaller in the last decade than was historically the case, given persistent low rates and narrow credit spreads. The lower yields have made the funds less attractive to investors, reducing the demand for prime funds and their associated revenue for fund sponsors." The piece adds, "Product revenue from prime funds is down not only because asset levels have fallen but also as a result of persistent low interest rates and narrow credit spreads in recent years. Given that these conditions are likely to remain in place and that the overall share of prime fund revenue within a sponsor's total revenue is likely to stay low, the prime fund product's revenue contribution may be less attractive to fund sponsors, especially after adjusting for the potential costs of having to support the funds' net asset value and its associated reputational risk in times of market stress. Fund sponsors that exit the prime fund business will have more robust operations knowing that they are not likely to have to deal with the question of whether to support or not to support a prime fund with their remaining liquidity product lineup during the next crisis. As sponsors review their liquidity fund offerings and consider the costs of potential sponsor support, institutional prime funds are likely to be less attractive to retain than retail prime funds and municipal funds."

Federated Hermes' Deborah Cunningham writes on "No shortage of smart" in her latest monthly commentary, saying, "The Fed keeps making good decisions to support the economy." She tells us, "The Federal Reserve continues to impress with how swiftly it addresses market needs in the coronavirus crisis. Emergency rate cut? Check. New facilities? Done. Quantitative easing? Of course. Shortage of coins in circulation? Somehow it got to that, too. Last week, the Fed even beat itself to the punch when it extended many of the new special purpose vehicles the day before its Federal Open Market Committee meeting concluded. End dates are now Dec. 31 for the Primary Dealer Credit Facility and Money Market Mutual Fund Liquidity Facility, and March 17, 2021, for the Commercial Paper Funding Facility. None of these programs have seen much use recently, but they give confidence to the markets simply by being there. I think all should stay in place until the pandemic is over or at least until we get a vaccine. The Fed also extended its dollar liquidity swap lines and repo facility for international monetary authorities through March 31, 2021. This is another good move as these have added support for the front end." Cunningham writes, "In mid-July, the Senate Banking Committee approved the nomination of Judy Shelton and Christopher Waller to the board of governors. If both are confirmed by Senate, the board would be full (seven governors) for the first time in several years. Waller, head of economic research at the St. Louis Fed, was always expected to make it through the committee, and is viewed as a dove. Shelton is another story. As a former advisor to President Trump, many are concerned she would ape his opinions, including supporting negative rates and limiting the central bank's independence." Finally, she adds, "The short end of the Treasury yield curve edged lower in July in response to the reduced supply. Already at historic levels, The Treasury Department's operating cash balance absorbed tax payments (both individual and corporate) on July 15, meaning it didn't need to issue much debt. That will change when Congress passes the new stimulus bill, whenever that happens. Even in this case, the Fed has alleviated the situation. Its increase of overnight and term repo rates in June has provided a floor above zero, leading the effective fed funds rate hovering around 9 basis points in July. Government fund asset levels were steady in July, while municipals experienced outflows typical around a tax day. Issuance of floaters and commercial paper went the opposite way as they continued their recovery from the barren days of March. Industry-wide, institutional prime fund assets essentially have returned to early January levels."

Money market fund yields continue to bottom out just above zero -- our flagship Crane 100 was down a basis point in the last week at 0.08%. The Crane 100 Money Fund Index fell below the 1.0% level in mid-March and below the 0.5% level in late March. It is down from 1.46% at the start of the year and down from 2.23% at the beginning of 2019. Over half of all money funds and just under a third of MMF assets have since landed on the zero yield floor, though many continue to show some yield. According to our Money Fund Intelligence Daily, as of Friday, 7/31, 521 funds (out of 850 total) yield 0.00% or 0.01% with assets of $1.638 trillion, or 33.0% of the total. There are 194 funds yielding between 0.02% and 0.10%, totaling $2.273 trillion, or 45.9% of assets; 120 funds yielded between 0.11% and 0.25% with $872.1 billion, or 17.6% of assets; 15 funds yielded between 0.26% and 0.50% with $173.6 billion in assets, or 3.5%. No funds yield over funds yield over 0.50%. The Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 671), shows a 7-day yield of 0.05%, down a basis point in the week through Friday, 7/31. The Crane Money Fund Average is down 42 bps from 0.47% at the beginning of April. Prime Inst MFs were down a basis point to 0.11% in the latest week and Government Inst MFs were flat at 0.04%. Treasury Inst MFs were unchanged at 0.04%. Treasury Retail MFs currently yield 0.01%, (unchanged in the last week), Government Retail MFs yield 0.01% (unchanged in the last week), and Prime Retail MFs yield 0.06% (down a basis point for the week), Tax-exempt MF 7-day yields were down a basis point at 0.04%. (Let us know if you'd like to see our latest MFI Daily.) Our Crane Brokerage Sweep Index, which hit the zero floor almost four months ago, remains at 0.01%. The latest Brokerage Sweep Intelligence, with data as of July 31, shows no changes in the last week. All of the major brokerages now offer rates of 0.01% for balances of $100K. No brokerage sweep rates or money fund yields have gone negative to date, but this could become a distinct possibility in coming weeks or months. Crane's Brokerage Sweep Index has been flat for the last ten weeks at 0.01% (for balances of $100K). Ameriprise, E*Trade, Fidelity, Merrill Lynch, Morgan Stanley, Raymond James, RW Baird, Schwab, TD Ameritrade, UBS and Wells Fargo all currently have rates of 0.01% for balances at the $100K tier level (and almost every other tier too). Fin-tech "robo" advisor firms Betterment, Wealthfront and Robinhood have also cut rates and are offering 0.40%, 0.35% and 0.30%, respectively. In other news, see Bloomberg's "Fed Is Headed for a Clash With Hedge Funds, Other Shadow Banks", which says, "The Federal Reserve and other central banks are heading for a collision with shadow lenders -- the firms with a sinister nickname that are increasingly dominating global finance. Even as policy makers struggle to reopen their economies in the midst of the coronavirous pandemic, they've launched a review of what went wrong with markets in March, when a worldwide dash for cash by investors nearly crashed the financial system and forced unprecedented rescue actions by central banks. Their focus is on loosely regulated money market and hedge funds, mortgage originators and other entities. Already, some watchdogs have pointed to highly leveraged trades involving U.S. Treasuries as one source of the turmoil."

A Prospectus Supplement filing for Dreyfus's General New Jersey Money Market Fund tells us, "The Board of Directors of General New Jersey Municipal Money Market Fund, Inc. (the 'Fund') has approved the liquidation of the Fund, effective on or about September 11, 2020 (the 'Liquidation Date'). Before the Liquidation Date, and at the discretion of Fund management, the Fund's portfolio securities will be sold and the Fund may cease to pursue its investment objective and policies. The liquidation of the Fund may result in one or more taxable events for shareholders subject to federal income tax." It explains, "Accordingly, effective on or about August 31, 2020 (the 'Closing Date'), the Fund will be closed to any investments for new accounts, except that new accounts may be established for 'sweep accounts' and by participants in group retirement plans if the Fund is established as an investment option under the plans before the Closing Date. The Fund will continue to accept subsequent investments until the Liquidation Date, except that subsequent investments made by check or pursuant to TeleTransfer or Automatic Asset Builder no longer will be accepted after August 31, 2020. However, subsequent investments by Individual Retirement Accounts and retirement plans sponsored by BNY Mellon Investment Adviser, Inc. or its affiliates (together, 'BNYM Adviser Retirement Plans') pursuant to TeleTransfer or Automatic Asset Builder (but not by check) will be accepted after August 31, 2020. Please note that checks presented for payment to the Fund's transfer agent pursuant to the Fund's Checkwriting Privilege on or after the Liquidation Date will not be honored. Fund shares held on the Liquidation Date in BNYM Adviser Retirement Plans will be exchanged for Dreyfus Class shares of General Government Securities Money Market Fund ('GGSMMF')." See also our March 25 Link of the Day, "Reuters on General NJ MMF's NAV."

Earlier this week, The Wall Street Journal wrote, "Vanguard Challenges Bond Behemoths With Active Funds," which discussed the company's rapid growth in short-term and ultra-short bond funds. They explain, "Vanguard Group, the titan of low-cost index funds, is coming after a fast-growing pocket of the money-management industry: actively managed bond funds. The firm's investment dollars in such funds pushed past the half-trillion mark for the first time in June, a potential problem for competitors such as BlackRock Inc., Fidelity Investments, Pimco and Western Asset Management Co., which have long dominated bond investing. Malvern, Pa.-based Vanguard has made a number of hires in recent years to expand in areas like emerging markets, short-term corporate debt and pan-market, or 'core bond' funds. Most of the nascent funds are small to midsize but they are growing quickly, in large part because they charge much less than the competition." The piece continues, "About five years ago, the firm set out to change that by broadening the range of active bond funds it offers, said John Hollyer, global head of fixed income at Vanguard. It launched an ultra-short-term bond fund in 2015, and the core bond fund and an emerging markets bond fund in 2016.... The new funds are still relatively small, and Vanguard's active bond funds account for about 8% of overall assets. Still, the rate of growth picked up in 2020. Vanguard's ultrashort fund has been particularly attractive this year as a slightly riskier alternative to money-market funds, which now yield close to zero because of the Fed's rate cuts, Mr. DeMaso said. The fund, which yields about 1%, has grown to $9.3 billion from $6.7 billion at the start of the year, while Pimco's comparable fund has shrunk and Fidelity's has stayed unchanged, according to Morningstar. The lowest-cost shares in Vanguard's fund charge $1 per $1,000 invested, compared with $4.50 for Pimco and $2.50 for Fidelity." (Let us know if you'd like to see our latest Bond Fund Intelligence publication, which tracks the bond fund marketplace with an emphasis on the ultra-short segment, or Bond Fund Portfolio Holdings data set. We released our Ultra-Short Bond Fund Portfolio Holdings last week, and updated our Short-Term Bond Fund Portfolio Holdings yesterday.)

Schwab filed a "Form N-1A Registration Statement" for new "Ultra Share" classes of its Schwab Government Money Fund, Schwab Treasury Obligations Money Fund and Schwab U.S. Treasury Money Fund. The shares are expected to go live on Sept. 24, but don't have tickers or expense ratios posted yet. The filing explains, "The fund's goal is to seek the highest current income consistent with stability of capital and liquidity.... To pursue its goal, the fund invests in U.S. government securities, such as: U.S. Treasury bills and notes, other obligations that are issued by the U.S. government, its agencies or instrumentalities, including obligations that are not fully guaranteed by the U.S. Treasury, such as those issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks, repurchase agreements that are collateralized fully by cash and/or U.S. government securities [and] obligations that are issued by private issuers that are guaranteed as to principal or interest by the U.S. government, its agencies or instrumentalities." Schwab Treasury Obligations Money Fund's prospectus says, "The fund's goal is to seek current income consistent with stability of capital and liquidity. The fund's investment objective is not fundamental and therefore may be changed by the fund’s Board of Trustees without shareholder approval.... To pursue its goal, the fund typically invests in securities backed by the full faith and credit of the U.S. government and repurchase agreements backed by such investments." Schwab U.S. Treasury Money Fund's prospectus adds, "The fund's goal is to seek the highest current income that is consistent with stability of capital and liquidity.... To pursue its goal, the fund typically invests in securities backed by the full faith and credit of the U.S. government. The fund intends to operate as a government money market fund under the regulations governing money market funds. The fund will invest at least 99.5% of its total assets in cash and/or government securities (including bills and notes); under normal circumstances, at least 80% of the fund's net assets (including, for this purpose, any borrowings for investment purposes) will be invested solely in U.S. Treasury securities (excluding cash). With respect to the 80% policy, the fund will notify its shareholders at least 60 days before changing the policy. The full faith and credit backing is the strongest backing offered by the U.S. government, and traditionally is considered by investors to be the highest degree of safety as far as the payment of principal and interest." Currently, our MFI Daily tracks 14 Schwab money funds: Schwab AMT Tax-Free MF Inv ($1.1 billion in total assets), Schwab CA Municipal MF Inv ($4.6B), Schwab Government Money Fund Inv ($16.0B), Schwab Government Money Fund Swp ($17.4B), Schwab Govt Money Market Portfolio ($185M), Schwab Municipal MF Inv ($2.5B), Schwab Municipal MF Ultra ($11.6B), Schwab NY AMT T-F MM Inv ($873M), Schwab Retirement Govt MF ($2.5B), Schwab Treasury Oblig MF Inv ($10.9B), Schwab US Treasury MF Investor ($16.0B), Schwab Value Adv MF Inv ($67.6B), Schwab Value Adv MF Ultra ($44.8B) and Schwab Variable Share MF Ultra ($4.6B).

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