News Archives: January, 2025
The SEC published its latest quarterly "Private Funds Statistics" report recently, which summarizes Form PF reporting and includes some data on "Liquidity Funds," or pools which are similar to but not money market funds. The publication shows overall Liquidity fund assets were higher in the latest reported quarter (Q2'24) at $342 billion (up from $331 billion in Q1'24 and up from $319 billion in Q2'23). We also again briefly review the part of the SEC's MMF Reforms which addresses "Amendments to Form PF Reporting Requirements for Large Liquidity Fund Advisers" and which went into effect over the summer, below. (Note: Please join us for our upcoming Bond Fund Symposium, which will be held March 27-28, 2025 in Newport Beach, California!)
The SEC's "Introduction" tells us, "This report provides a summary of recent private fund industry statistics and trends, reflecting data collected through Form PF and Form ADV filings received through December 06, 2024. Form PF information provided in this report is aggregated, rounded, and/or masked to avoid potential disclosure of proprietary information of individual Form PF filers. This report reflects data from Second Calendar Quarter 2022 through Second Calendar Quarter 2024 as reported by Form PF filers." (Note: Crane Data believes the largest portion of these liquidity fund assets are securities lending reinvestment pools.)
The tables in the SEC's "Private Funds Statistics: Second Calendar Quarter 2024," with the most recent data available, show 75 Liquidity Funds (most of which are "Section 3 Liquidity Funds," which are Liquidity Funds from advisers with over $1 billion total in cash), up 2 from last quarter and up 6 from a year ago. (There are 51 Section 3 Liquidity Funds out of the 75 Liquidity Funds.) The SEC receives Form PF reports from 38 Liquidity Fund advisers (21 of which are Section 3 Liquidity Fund advisers), up 1 from last quarter and up 5 from a year ago.
The SEC's table on "Aggregate Private Fund Net Asset Value" shows total Liquidity Fund assets at $342 billion, up $11 billion from Q1'24 and up $23 billion from a year ago (Q2'23). Of this total, $340 billion is in Section 3 (large manager) Liquidity Funds. The SEC's table on "Aggregate Private Fund Gross Asset Value" shows total Liquidity Fund assets at $352 billion, up $13 billion from Q1'24 and up $20 billion from a year ago (Q2'23). Of this total, $349 billion in is Section 3 (large manager) Liquidity Funds.
A table on "Beneficial Ownership for Section 3 Liquidity Funds" shows $70 billion is held by Other (20.7%), $91 billion is held by Unknown Non-U.S. Investors (26.7%), $50 billion is held by Private Funds (14.7%), $14 billion is held by Insurance Companies (4.2%) and $3 billion is held by Non-Profits (0.9%).
The tables also show that 65.3% of Section 3 Liquidity Funds have a liquidation period of one day, $322 billion of these funds may suspend redemptions, and $291 billion of these funds may have gates. WAMs average a short 38.7 days (44.7 days when weighted by assets), WALs are 52.0 days (66.5 days when asset-weighted), and 7-Day Gross Yields average 5.30% (5.20% asset-weighted). Daily Liquid Assets average about 57.3% (49.4% asset-weighted) while Weekly Liquid Assets average about 64.7% (63.8% asset-weighted).
As we've mentioned before, in July 2023, when the SEC's Money Market Fund Reforms were passed, these also included "Amendments to Form PF Reporting Requirements for Large Liquidity Fund Advisers." The release explains, "Separately, the amendments will also modify certain reporting forms that are applicable to money market funds and large private liquidity funds advisers."
The "Fact Sheet" explains, "In addition, the Commission adopted amendments to Form PF, the confidential reporting form for certain SEC-registered investment advisers to private funds, to require additional information regarding the liquidity funds they advise that is generally aligned with the amended reporting for money market funds. These amendments were proposed by the Commission in January 2022."
The full final rules tell us, "The Commission is also amending Form PF, the confidential reporting form for certain SEC-registered investment advisers to private funds to require additional information regarding the liquidity funds they advise. Liquidity funds are private funds that seek to maintain a stable NAV (or minimize fluctuations in their NAVs) and thus can resemble money market funds. The amendments to section 3 of Form PF will provide a more complete picture of the short-term financing markets in which liquidity funds invest and enhance the Commission's and the Financial Stability Oversight Council's ('FSOC') ability to assess short-term financing markets and facilitate our oversight of those markets and their participants. This, in turn, is designed to enhance investor protection efforts and systemic risk assessment. `We have consulted with FSOC to gain input on these amendments to help ensure that Form PF continues to provide FSOC with information it can use to assess systemic risk."
It adds, "In a January 2022 release proposing amendments to Form PF, the Commission proposed changes to section 3 of Form PF that were intended to require large liquidity fund advisers to report substantially the same information that the Commission had proposed money market funds to report on Form N-MFP. The proposed amendments to section 3 of Form PF included requirements for additional and more granular information regarding large liquidity fund operational information and assets, portfolio holdings, financing, and investor information as well as a new item concerning the disposition of portfolio securities. Consistent with the final amendments to Form N-MFP, we are adopting largely as proposed the amendments to section 3 of Form PF, with some modifications to better tailor the reporting to private liquidity funds and remain consistent with the final requirements for money market funds under amended Form N-MFP."
Crane Data's latest Money Fund Intelligence International shows that assets in European or "offshore" money market mutual funds moved higher again over the past 30 days to a record $1.463 trillion, while yields moved lower. Assets for USD, EUR and GBP all rose over the past month. Like U.S. money fund assets, European MMFs have repeatedly hit record highs in 2023, 2024 and early in 2025. These U.S.-style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, increased by $27.3 billion over the 30 days through 1/14. The totals are up $30.4 billion (2.1%) year-to-date for 2025, they were up $235.3 billion (19.7%) for 2024 and up $166.9 billion (16.2%) for the year 2023. (Note that currency moves in the U.S. dollar cause Euro and Sterling totals to shift when they're translated back into totals in U.S. dollars. See our latest MFI International for more on the "offshore" money fund marketplace. These funds are only available to qualified, non-U.S. investors and are almost entirely institutional.)
Offshore US Dollar money funds increased $16.7 billion over the last 30 days and are up $16.8 billion YTD to $760.4 billion; they increased $94.1 billion in 2024. Euro funds increased E6.3 billion over the past month. YTD, they're up E0.4 billion to E318.2 billion, for 2024, they increased by E82.9 billion. GBP money funds increased L2.7 million over 30 days, and they're up L9.9 billion YTD at L264.6B, for 2024, they rose L19.3 billion. U.S. Dollar (USD) money funds (260) account for over half (52.0%) of the "European" money fund total, while Euro (EUR) money funds (180) make up 24.0% and Pound Sterling (GBP) funds (171) total 24.0%. We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers Wednesday), below.
Offshore USD MMFs yield 4.33% (7-Day) on average (as of 1/14/25), down 22 basis points from a month earlier. Yields averaged 4.20% on 12/30/22 and 0.03% on 12/31/21. EUR MMFs, which left negative yield territory in the second half of 2022, yield 2.88% on average, down 20 bps from a month ago and up from 1.48% on 12/30/22 and -0.80% on 12/31/21. Meanwhile, GBP MMFs broke above the 5.0% barrier 17 months ago, but they broke back below 5.0% 6 months ago. They now yield 4.65%, down 3 bps from a month ago, but up from 3.17% on 12/30/22. Sterling yields were 0.01% on 12/31/21.
Crane's December MFI International Portfolio Holdings, with data as of 12/31/24, show that European-domiciled US Dollar MMFs, on average, consist of 28% in Commercial Paper (CP), 16% in Certificates of Deposit (CDs), 21% in Repo, 23% in Treasury securities, 10% in Other securities (primarily Time Deposits) and 2% in Government Agency securities. USD funds have on average 42.3% of their portfolios maturing Overnight, 3.2% maturing in 2-7 Days, 14.3% maturing in 8-30 Days, 10.6% maturing in 31-60 Days, 7.3% maturing in 61-90 Days, 16.1% maturing in 91-180 Days and 6.3% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (38.7%), Canada (11.6%), France (10.7%), Japan (10.2%), Australia (5.6%), the U.K. (3.4%), Germany (3.4%), the Netherlands (2.9%), Finland (2.6%) and Sweden (2.2%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $173.7 billion (23.2% of total assets), Fixed Income Clearing Corp with $44.4B (5.9%), RBC with $24.5B (3.3%), Mizuho Corporate Bank with $20.5B (2.7%), Toronto-Dominion Bank with $19.9B (2.7%), Australia & New Zealand Banking Group Ltd with $18.4B (2.5%), Credit Agricole with $18.2B (2.4%), Nordea Bank with $18.1B (2.4%), Mitsubishi UFJ Financial Group Inc with $17.9B (2.4%) and Societe Generale with $14.9B (2.0%).
Euro MMFs tracked by Crane Data contain, on average 40% in CP, 25% in CDs, 15% in Other (primarily Time Deposits), 17% in Repo, 3% in Treasuries and 0% in Agency securities. EUR funds have on average 34.1% of their portfolios maturing Overnight, 9.4% maturing in 2-7 Days, 19.0% maturing in 8-30 Days, 15.8% maturing in 31-60 Days, 6.2% maturing in 61-90 Days, 9.4% maturing in 91-180 Days and 6.1% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (30.1%), Japan (12.3%), Canada (9.5%), the U.S. (7.1%), Germany (6.8%), the Netherlands (5.9%), the U.K. (4.4%), Australia (3.6%), Austria (3.5%) and Belgium (3.0%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E18.4B (6.3%), Republic of France with E15.9B (5.5%), BNP Paribas with E15.1B (5.2%), Sumitomo Mitsui Banking Corp with E9.7B (3.4%), Societe Generale with E8.7B (3.0%), Toronto-Dominion Bank with E8.6B (3.0%), Mitsubishi UFJ Financial Group Inc with E8.3B (2.9%), Mizuho Corporate Bank Ltd with E7.8B (2.7%), Bank of Nova Scotia with E7.3B (2.5%) and JP Morgan with E6.6B (2.3%).
The GBP funds tracked by MFI International contain, on average (as of 12/31/24): 38% in CDs, 19% in CP, 22% in Other (Time Deposits), 17% in Repo, 3% in Treasury and 1% in Agency. Sterling funds have on average 34.6% of their portfolios maturing Overnight, 4.0% maturing in 2-7 Days, 16.6% maturing in 8-30 Days, 15.4% maturing in 31-60 Days, 8.3% maturing in 61-90 Days, 13.7% maturing in 91-180 Days and 7.4% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (15.5%), Japan (15.2%), Canada (13.1%), the U.K. (12.9%), Australia (10.4%), the U.S. (7.8%), the Netherlands (3.9%), Singapore (3.5%), Finland (2.9%), and Abu Dhabi (2.5%).
The 10 Largest Issuers to "offshore" GBP money funds include: UK Treasury with L16.1B (6.6%), RBC with L11.9B (4.9%), Mizuho Corporate Bank Ltd with L10.4B (4.3%), Sumitomo Mitsui Trust Bank with L10.1B (4.2%), Toronto-Dominion Bank with L9.4B (3.9%), Mitsubishi UFJ Financial Group Inc with L9.3B (3.8%), BNP Paribas with L8.6B (3.6%), National Australia Bank Ltd with L8.3B (3.4%), Commonwealth Bank of Australia with L7.9B (3.3%) and JP Morgan with L6.9B (2.8%).
The January issue of our Bond Fund Intelligence, which will be sent to subscribers Wednesday morning, features the stories, "Top Stories & Funds of '24: Short-Term & High-Yield," which features the top BFI stories and funds from 2024, and "Worldwide BF Assets Jump to $14.1 Trillion, Led by U.S.," which recaps the latest statistics on bond fund markets outside the U.S. BFI also recaps the latest Bond Fund News and includes our Crane BFI Indexes, which show that bond fund returns fell in December while yields were mixed. We excerpt from the new issue below. (Contact us if you'd like to see our latest Bond Fund Intelligence and BFI XLS spreadsheet, or our Bond Fund Portfolio Holdings data, and join us for our upcoming Bond Fund Symposium, which is March 27-28 in Newport Beach, Calif.)
BFI's "Top Stories" article states, "After a nice start to the year, bond funds saw losses in October and December, and they ended up underperforming money funds in 2024. It was the mirror opposite of 2023, when they had an ugly start but staged a nice comeback in late 2023. (This followed a brutal 2022.) Bond assets were up slightly in 2024 after a flat 2023. They rose by just $128.1 billion, or 4.7%, to $2.626 trillion, according to our BFI XLS. Bond ETFs rose $99.6B (9.2%) to $1.179 trillion.
It continues, "According to ICI's broader fund asset series, bond funds saw assets grow by $379 billion YTD in 2024 through 11/30/24, after seeing outflows of $25.9B for the same period in 2023. ICI's asset series stood at $5.124 trillion as of Nov. 30, 2024, up $515.2 billion, or 11.2%, from a year earlier. Bond ETFs totaled $1.179 trillion on 11/30/24, up $99.6 billion, or 9.2%, over 12 months."
Our "Worldwide" article states, "Bond fund assets worldwide increased in the latest quarter to $14.14 trillion, led higher by the four largest bond fund markets -- the U.S., Luxembourg, Ireland and China. We review the ICI's 'Worldwide Regulated Open-End Fund Assets and Flows, Third Quarter 2024' release and statistics below."
It continues, "ICI's report says, 'Worldwide regulated open-end fund assets increased 6.8% to $74.95 trillion at the end of the third quarter of 2024.... The Investment Company Institute compiles worldwide regulated open-end fund statistics on behalf of the International Investment Funds Association (IIFA).'"
Our first News brief, "Returns Retreat, Yields Mixed in Dec.," explains, "Bond fund returns were lower in December after rise in November. Our BFI Total Index fell 0.83% over 1-month but rose 3.92% over 12 months. (Money funds rose 5.08% over 1-year as measured by our Crane 100 Index.) The BFI 100 decreased 1.05% in Dec. but rose 3.44% over 12 mos. Our BFI Conservative Ultra-Short Index was up 0.32% over 1-month and 5.44% for 1-year; Ultra-Shorts rose 0.39% and 5.87%. Short-Term returned 0.06% and 5.15%, and Intm-Term fell 1.47% in Dec. and rose 2.41%. BFI's Long-Term Index was down 2.09% but up 1.69%. High Yield returned -0.33% in Dec. and 7.37% over 12 mos.
A second News brief, "A Release Says, 'Schwab Asset Management to Launch the Schwab Core Bond ETF.' It says, 'Schwab Asset Management … announced the launch of the Schwab Core Bond ETF (SCCR). It's the business's second actively managed fixed income ETF after the launch in August 2024 of the Schwab Ultra-Short Income ETF (SCUS).'"
Our next News brief, "Morningstar on 'How the Largest Bond Funds Did in 2024.' They write, 'For the most widely held bond funds in 2024, taking on riskier bonds was a winning strategy. Meanwhile, funds focused on longer-term, interest-rate-sensitive securities got hammered. US companies rush to bond market in fundraising flurry.'"
A BFI sidebar, "Vanguard Launches Short ETF," states, "A press release titled, 'Vanguard Expands Fixed Income Lineup with New Actively Managed Bond ETF,' tells us, 'Vanguard ... announced plans to introduce Vanguard Short Duration Bond ETF (VSDB), an active fixed income ETF that will be managed by Vanguard Fixed Income Group. Vanguard intends to launch the ETF in early April of this year.'"
Finally, another sidebar, "Bond Funds Trail Inflation," says, "Morningstar writes, 'Bond Funds Hurt By Rising Yields in Q4 2024.' The article states, 'The fourth quarter of 2024 proved tough going for most bond investors and led to lackluster results for the whole year, made worse when adjusted for inflation. As recently as mid-September, the investment-grade bond market as represented by the Morningstar US Core Bond Index was on pace for a calendar-year return of more than 5% for the second year in a row. But then worries about the stickiness of inflation combined with a more cautious rate-cutting stance from the Federal Reserve led to rising yields and falling prices for intermediate and long-term bonds.'"
The Federal Reserve Bank of Boston asks, "Are retail prime money market fund investors increasingly more sensitive to stress events?" The paper's authors, Kenechukwu Anadu, John Levin, Lina Lu, Antoine Malfroy-Camine, and Nico Oefele, explain, "U.S. prime money market mutual funds (MMFs) experienced large redemptions and bank-like runs in 2008 and 2020. During these episodes, institutional investors in prime MMFs tended to redeem quicker and at much larger magnitudes than retail investors. In this note, we examine how retail investors' redemption sensitivity has evolved between 2008 and 2020, to assess whether they have become relatively more attuned to stress in the MMF sector."
They tell us, "To do this, we estimate the response of prime funds' net flows to periods of stress in the MMF industry. We find that, on average, institutional prime MMFs experienced similar aggregate net outflows in both stress periods. In contrast, the average aggregate net outflows from retail prime MMFs increased from 2008 to 2020. Our findings suggest that redemption dynamics of investors in retail prime MMFs, which are often thought of as slower to react to stress events than institutional investors, may be evolving."
Discussing "Historical MMF Runs and Reforms," the paper says, "MMFs are U.S. Securities and Exchange Commission (SEC)-registered investment vehicles that typically aim to maintain a stable or near stable net asset value (NAV) of $1.00 per share. MMFs are classified as 'prime' funds, which can invest in private short-term debt such as commercial paper (CP) and certificates of deposit (CD); 'government' funds, which invest substantially all their assets in U.S. government and agency securities and repurchase agreements; and 'tax-exempt' funds, which hold municipal securities. Additionally, MMFs are also classified as 'institutional' and 'retail'."
It claims, "MMFs are vulnerable to runs because they engage in liquidity and maturity transformation: that is, they issue money-like liabilities that can be redeemed each day while investing in assets with credit and interest rate risk. Indeed, prime MMFs experienced two significant runs in 2008.... Both runs exacerbated stresses in short-term funding markets, which abated after the Federal Reserve established emergency lending facilities. These facilities were intended to '... assist MMMFs in meeting demands for redemptions ... [and] enhancing overall market functioning."
The Boston Fed paper continues, "Following these runs, the SEC promulgated reforms in 2010, 2014 and 2023 to strengthen MMF resilience. The 2010 reforms introduced new minimum liquid asset and enhanced disclosure requirements. The 2014 reforms had two core elements: a floating NAV requirement for institutional prime and tax-exempt MMFs and new liquidity fee and gating provisions. The floating NAV requirement sought to reduce run incentives associated with institutional prime MMFs that maintain a stable NAV. Prior to the reforms, such funds typically rounded their NAVs to $1.00 if their market-based value was at least $0.995. This created a 'threshold effect' that incentivized investors to redeem if the fund's market-based value approached that threshold."
It tells us, "The latest reforms in 2023 removed the 2014 fees and gates requirement and introduced a dynamic liquidity fee requirement for institutional prime funds, among other changes. These reforms have affected the operation of institutional and retail prime funds differently: institutional prime funds now transact at a floating NAV (under the 2014 reforms) and have dynamic liquidity fee requirements (from the 2023 reforms), whereas retail prime funds continue to transact at a stable NAV and are not subject to liquidity fees. The heightened regulation for institutional prime funds reflects the magnitude of runs in these funds observed in 2008 and 2020."
The piece comments, "Partly because of past runs on prime MMFs and the SEC's reform responses, the composition of the MMF industry has shifted notably. Figure 1, Panel A shows that as the compliance date of the core elements of 2014's reforms approached, in 2016, assets in government funds surged while those in prime funds declined sharply. The share of total prime MMF assets in institutional funds also declined."
Regarding "Motivation," the study says, "Following the run episodes and subsequent SEC reforms, we examine whether retail prime investors' sensitivity to runs has changed. Given that these funds continue to transact at a stable NAV, increased sensitivity could lead to increased redemptions during stress periods, potentially amplifying future strains in short-term funding markets, as observed with institutional prime MMF redemptions in 2008 and 2020."
They explain, "We obtain daily MMF data on size, percent flows, percent of a fund's assets that matures within seven days, a proxy for Weekly Liquid Assets (WLA), and weighted average maturity (WAM), for institutional and retail prime MMFs from iMoneyNet.... Figure 2 shows the cumulative net flows of institutional and retail prime MMFs over a two-week period of heavy net outflows in 2008 and 2020. In 2008, institutional prime funds experienced cumulative outflows of almost 30 percent of net assets, like levels experienced in 2020. In contrast, cumulative outflows from retail prime funds, while significantly less than those from institutional prime MMFs, were larger as a share of funds' assets in 2020 than in 2008. Retail funds' net outflows in 2008 were about four percent of net assets, but 2020's outflows reached nine percent."
The paper concludes, "U.S. prime MMFs experienced large redemptions and runs in 2008 and 2020. During these periods, institutional and retail prime MMFs experienced bouts of shareholder redemptions, with institutional prime MMFs seeing greater outflows than retail prime MMFs. We examined differences in net outflows from retail prime funds, between the 2008 and 2020 runs, to assess if they have, on average, become more sensitive to stress events."
Finally, it adds, "We find that, on average, retail prime funds' outflows were substantially larger in the 2020 stress period than in the 2008 episode. In contrast, net outflows from institutional prime funds, which were substantially larger than those of retail prime funds, remained relatively unchanged, on average, over both periods. One interpretation of these findings is that retail investors have grown more sensitive to portfolio risks and more inclined to redeem shares under market stress. If so, retail prime MMF shareholder behavior may increasingly resemble that of institutional prime MMFs."
Crane Data's January Money Fund Portfolio Holdings, with data as of Dec. 31, 2024, show that Repo holdings jumped sharply last month while Treasuries declined. Money market securities held by Taxable U.S. money funds (tracked by Crane Data) increased by $88.0 billion to $7.089 trillion in December, after increasing $190.8 billion in November, $82.8 billion in October, $233.8 billion in September, $57.2 billion in August and $90.4 billion in July. Taxable holdings decreased by $0.4 billion in June, increased $105.6 billion in May, and decreased $61.4 billion in April. Treasuries, the largest segment, decreased $69.5 billion in December after increasing $188.3 billion in November, $236.2 billion in October and $92.0 billion in September, $85.8 billion in August and $24.3 billion in July. Repo, the second largest portfolio composition segment, increased by $211.3 billion. Agencies were the third largest segment, CP remained fourth, ahead of CDs, Other/Time Deposits and VRDNs. Below, we review our latest Money Fund Portfolio Holdings statistics. (Visit our Content center to download, or contact us to request our latest Portfolio Holdings reports.)
Among taxable money funds, Repurchase Agreements (repo) increased $211.3 billion (8.8%) to $2.612 trillion, or 36.8% of holdings, in December, after decreasing $26.3 billion in November, $242.8 billion in October and increasing $151.7 billion in September. Repo decreased $40.2 billion in August and $21.5 billion in July. Treasury securities decreased $69.5 billion (-2.3%) to $2.985 trillion, or 42.1% of holdings, after increasing $188.3 billion in November, $236.2 billion in October, $92.0 billion in September, $85.8 billion in August and $24.3 billion in July. Government Agency Debt was up $33.0 billion, or 3.9%, to $879.9 billion, or 12.4% of holdings. Agencies decreased $2.4 billion in November, increased $70.3 billion in October, $20.9 billion in September, $11.2 billion in August and $22.9 billion in July. Repo, Treasuries and Agency holdings now total $6.478 trillion, representing a massive 91.4% of all taxable holdings.
Money fund holdings of Other (Time Deposits) and CP fell in December while CDs rose. Commercial Paper (CP) decreased $7.3 billion (-2.5%) to $289.1 billion, or 4.1% of holdings. CP holdings increased $2.6 billion in November, $12.2 billion in October, $0.3 billion in September and $4.5 billion in August. Certificates of Deposit (CDs) increased $0.5 billion (0.3%) to $187.7 billion, or 2.7% of taxable assets. CDs increased $0.5 billion in November, $2.1 billion in October, but decreased $1.7 billion in September and $13.9 billion in August. Other holdings, primarily Time Deposits, decreased $84.6 billion (-42.4%) to $115.0 billion, or 2.9% of holdings, after increasing $27.6 billion in November, $3.9 billion in October, decreasing $29.4 billion in September and increasing $9.3 billion in August. VRDNs increased to $14.7 billion, or 0.2% of assets. (Note: This total is VRDNs for taxable funds only. We will post our Tax Exempt MMF holdings separately Monday around noon.)
Prime money fund assets tracked by Crane Data increased to $1.175 trillion, or 16.6% of taxable money funds' $7.089 trillion total. Among Prime money funds, CDs represent 16.4% (up from 16.0% a month ago), while Commercial Paper accounted for 24.6% (down from 25.3% a month ago). The CP totals are comprised of: Financial Company CP, which makes up 16.8% of total holdings, Asset-Backed CP, which accounts for 6.4%, and Non-Financial Company CP, which makes up 1.4%. Prime funds also hold 0.4% in US Govt Agency Debt, 3.4% in US Treasury Debt, 26.6% in US Treasury Repo, 0.9% in Other Instruments, 6.4% in Non-Negotiable Time Deposits, 8.6% in Other Repo, 11.3% in US Government Agency Repo and 0.9% in VRDNs.
Government money fund portfolios totaled $3.900 trillion (55.0% of all MMF assets), up from $3.862 trillion in November, while Treasury money fund assets totaled another $2.014 trillion (28.4%), up from $1.969 trillion the prior month. Government money fund portfolios were made up of 22.4% US Govt Agency Debt, 15.6% US Government Agency Repo, 35.9% US Treasury Debt, 25.3% in US Treasury Repo, 0.5% in Other Instruments. Treasury money funds were comprised of 76.7% US Treasury Debt and 23.1% in US Treasury Repo. Government and Treasury funds combined now total $5.914 trillion, or 83.4% of all taxable money fund assets.
European-affiliated holdings (including repo) decreased by $203.9 billion in December to $560.1 billion; their share of holdings fell to 7.9% from last month's 10.9%. Eurozone-affiliated holdings decreased to $393.2 billion from last month's $507.4 billion; they account for 5.6% of overall taxable money fund holdings. Asia & Pacific related holdings fell to $302.1 billion (4.3% of the total) from last month's $313.9 billion. Americas related holdings rose to $6.223 trillion from last month's $5.930 trillion, and now represent 87.8% of holdings.
The overall taxable fund Repo totals were made up of: US Treasury Repurchase Agreements (up $220.9 billion, or 14.3%, to $1.763 trillion, or 24.9% of assets); US Government Agency Repurchase Agreements (down $11.8 billion, or -1.6%, to $742.1 billion, or 10.5% of total holdings), and Other Repurchase Agreements (up $2.1 billion, or 2.0%, from last month to $106.8 billion, or 1.5% of holdings). The Commercial Paper totals were comprised of Financial Company Commercial Paper (down $4.7 billion to $196.8 billion, or 2.8% of assets), Asset Backed Commercial Paper (down $1.0 billion at $75.5 billion, or 1.1%), and Non-Financial Company Commercial Paper (down $1.5 billion to $16.8 billion, or 0.2%).
The 20 largest Issuers to taxable money market funds as of Dec. 31, 2024, include: the US Treasury ($2.985T, 42.1%), Fixed Income Clearing Corp ($855.7B, 12.1%), Federal Home Loan Bank ($650.8B, 9.2%), the Federal Reserve Bank of New York ($382.1B, or 5.4%), RBC ($200.6B, 2.8%), JP Morgan ($178.1B, 2.5%), Federal Farm Credit Bank ($154.7B, 2.2%), Goldman Sachs ($143.9B, 2.0%), Citi ($138.4B, 2.0%), BNP Paribas ($100.6B, 1.4%), Bank of America ($92.9B, 1.3%), Mitsubishi UFJ Financial Group Inc ($72.8B, 1.0%), Wells Fargo ($72.3B, 1.0%), Sumitomo Mitsui Banking Corp ($68.9B, 1.0%), Canadian Imperial Bank of Commerce ($67.3B, 0.9%), Barclays PLC ($59.9B, 0.8%), Credit Agricole ($58.3B, 0.8%), Toronto-Dominion Bank ($57.6B, 0.8%), Mizuho Corporate Bank Ltd ($46.5B, 0.7%), and Bank of Montreal ($45.2B, 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 Corp ($829.4B, 31.7%), the Federal Reserve Bank of New York ($382.1B, 14.6%), JP Morgan ($169.8B, 6.5%), RBC ($160.5B, 6.1%), Goldman Sachs ($143.1B, 5.5%), Citi ($125.5B, 4.8%), BNP Paribas ($90.0B, 3.4%), Bank of America ($72.0B, 2.8%), Wells Fargo ($71.0B, 2.7%) and Sumitomo Mitsui Banking Corp ($50.5B, 1.9%).
The largest users of the $382.1 billion in Fed RRP include: Vanguard Federal Money Mkt Fund ($47.7B), Fidelity Cash Central Fund ($43.0B), Schwab Value Adv MF ($24.0B), JPMorgan US Govt MM ($22.2B), Fidelity Inv MM: MM Port ($20.6B), Fidelity Sec Lending Cash Central Fund ($19.6B), Goldman Sachs FS Govt ($19.1B), Fidelity Money Market ($17.2B), JPMorgan Liquid Assets ($16.1B) and Vanguard Market Liquidity Fund ($13.7B).
The 10 largest issuers of "credit" -- CDs, CP and Other securities (including Time Deposits and Notes) combined -- include: RBC ($40.1B, 7.4%), Toronto-Dominion Bank ($38.0B, 7.0%), Mizuho Corporate Bank Ltd ($32.1B, 5.9%), Mitsubishi UFJ Financial Group Inc ($29.4B, 5.4%), Canadian Imperial Bank of Commerce ($26.5B, 4.9%), Fixed Income Clearing Corp ($26.3B, 4.9%), Australia & New Zealand Banking Group Ltd ($24.8B, 4.6%), Bank of America ($20.9B, 3.9%), Bank of Montreal ($19.8B, 3.7%), and Sumitomo Mitsui Trust Bank ($19.6B, 3.6%).
The 10 largest CD issuers include: Mitsubishi UFJ Financial Group Inc ($21.7B, 11.3%), Sumitomo Mitsui Banking Corp ($17.3B, 9.0%), Mizuho Corporate Bank Ltd ($16.9B, 8.8%), Sumitomo Mitsui Trust Bank ($15.6B, 8.1%), Bank of America ($12.8B, 6.6%), Toronto-Dominion Bank ($11.8B, 6.1%), Credit Agricole ($10.6B, 5.5%), Canadian Imperial Bank of Commerce ($9.6B, 5.0%), Mitsubishi UFJ Trust and Banking Corporation ($8.3B, 4.3%) and Bank of Nova Scotia ($6.3B, 3.3%).
The 10 largest CP issuers (we include affiliated ABCP programs) include: Toronto-Dominion Bank ($23.1B, 8.5%), RBC ($22.4B, 8.3%), Bank of Montreal ($14.4B, 5.3%), Citi ($10.4B, 3.8%), BPCE SA ($10.2B, 3.8%), National Australia Bank Ltd ($9.6B, 3.6%), Barclays PLC ($9.5B, 3.5%), Australia & New Zealand Banking Group Ltd ($9.5B, 3.5%), DNB ASA ($9.4B, 3.5%) and Canadian Imperial Bank of Commerce ($8.9B, 3.3%).
The largest increases among Issuers include: Federal Reserve Bank of New York (up $212.4B to $382.1B), Fixed Income Clearing Corp (up $77.7B to $855.7B), Goldman Sachs (up $34.8B to $143.9B), RBC (up $33.6B to $200.6B), Federal Home Loan Bank (up $23.2B to $650.8B), JP Morgan (up $12.3B to $178.1B), Sumitomo Mitsui Banking Corp (up $5.4B to $68.9B), Canadian Imperial Bank of Commerce (up $4.6B to $67.3B), Wells Fargo (up $4.6B to $72.3B) and Federal National Mortgage Association (up $4.5B to $30.0B).
The largest decreases among Issuers of money market securities (including Repo) in October were shown by: US Treasury (down $69.5B to $2.985T), BNP Paribas (down $49.7B to $100.6B), Barclays PLC (down $37.9B to $59.9B), ING Bank (down $20.4B to $14.9B), Citi (down $19.2B to $138.4B), DNB ASA (down $16.5B to $9.4B), Skandinaviska Enskilda Banken AB (down $15.1B to $8.2B), Credit Agricole (down $13.7B to $58.3B), Bank of America (down $8.3B to $92.9B) and ABN Amro Bank (down $8.3B to $7.7B).
The United States remained the largest segment of country-affiliations; it represents 82.0% of holdings, or $5.810 trillion. Canada (5.8%, $413.2B) was in second place, while Japan (4.0%, $280.6B) was No. 3. France (3.5%, $247.6B) occupied fourth place. The United Kingdom (1.8%, $128.3B) remained in fifth place. Australia (0.9%, $60.6B) was in sixth place, followed by Germany (0.5%, $32.0B), Netherlands (0.4%, $25.7B), Spain (0.3%, $23.7B), and Sweden (0.3%, $20.0B). (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 Dec. 31, 2024, Taxable money funds held 47.5% (up from 42.8%) of their assets in securities maturing Overnight, and another 9.4% maturing in 2-7 days (down from 12.3%). Thus, 57.0% in total matures in 1-7 days. Another 11.9% matures in 8-30 days, while 10.7% matures in 31-60 days. Note that over three-quarters, or 79.6% of securities, mature in 60 days or less, the dividing line for use of amortized cost accounting under SEC regulations. The next bucket, 61-90 days, holds 6.3% of taxable securities, while 10.6% matures in 91-180 days, and just 3.6% matures beyond 181 days.
Crane Data's latest monthly Money Fund Portfolio Holdings statistics will be sent out Friday, and we'll be writing our regular monthly update on the new December 31 data for Monday's News. But we also already uploaded a separate and broader Portfolio Holdings data set based on the SEC's Form N-MFP filings on Thursday. (We continue to merge the two series, and the N-MFP version is now available via our Portfolio Holdings file listings to Money Fund Wisdom subscribers.) Our new N-MFP summary, with data as of December 31, includes holdings information from 993 money funds (up 7 from last month), representing assets of $7.250 trillion (up from $7.131 trillion). Prime MMFs rose to $1.065 trillion (up from $1.058 trillion), or 14.7% of the total. We review the new N-MFP data, and we also look at our revised MMF expense data, which shows charged expenses were mostly flat and money fund revenues rose to $19.3 billion (annualized) in December.
Our latest Form N-MFP Summary for All Funds (taxable and tax-exempt) shows Treasuries and Repurchase Agreements (Repo) remain the largest types of portfolio holdings in money market funds. Treasury holdings in money market funds now total $2.993 trillion (down from $3.050 trillion), or 41.3% of all assets, while Repo holdings rose to $2.619 trillion (up from $2.390 billion), or 36.1% of all holdings. Government Agency securities total $885.6 billion (up from $852.1 billion), or 12.2%. Holdings of Treasuries, Government agencies and Repo (almost all of which is backed by Treasuries and agencies) combined total $6.498 trillion, or a massive 89.6% of all holdings.
The Other category (primarily Time Deposits) totals $122.1 billion (down from $206.5 billion), or 1.7%, and Commercial paper (CP) totals $298.9 billion (down from $306.7 billion), or 4.1% of all holdings. Certificates of Deposit (CDs) total $192.4 billion (up from $187.6 billion), 2.7%, and VRDNs account for $138.5 billion (up from $138.2 billion), or 1.9% of money fund securities.
Broken out into the SEC's more detailed categories, the CP totals were comprised of: $196.8 billion, or 2.7%, in Financial Company Commercial Paper; $75.5 billion or 1.0%, in Asset Backed Commercial Paper; and, $26.6 billion, or 0.4%, in Non-Financial Company Commercial Paper. The Repo totals were made up of: U.S. Treasury Repo ($1.779 trillion, or 24.5%), U.S. Govt Agency Repo ($731.1B, or 10.1%) and Other Repo ($108.0B, or 1.5%).
The N-MFP Holdings summary for the Prime Money Market Funds shows: CP holdings of $254.8 billion (down from $263.4 billion), or 23.9%; Repo holdings of $513.8 billion (up from $406.6 billion), or 48.3%; Treasury holdings of $36.3 billion (down from $52.8 billion), or 3.4%; CD holdings of $167.0 billion (up from $162.3 billion), or 15.7%; Other (primarily Time Deposits) holdings of $77.7 billion (down from $158.5 billion), or 7.3%; Government Agency holdings of $4.9 billion (up from $4.7 billion), or 0.5% and VRDN holdings of $10.2 billion (up from $9.9 billion), or 1.0%.
The SEC's more detailed categories show CP in Prime MMFs made up of: $176.1 billion (down from $180.2 billion), or 16.5%, in Financial Company Commercial Paper; $63.0 billion (down from $66.2 billion), or 5.9%, in Asset Backed Commercial Paper; and $15.8 billion (down from $17.1 billion), or 1.5%, in Non-Financial Company Commercial Paper. The Repo totals include: U.S. Treasury Repo ($298.7 billion, or 28.1%), U.S. Govt Agency Repo ($126.4 billion, or 11.9%), and Other Repo ($88.7 billion, or 8.3%).
In related news, money fund charged expense ratios (Exp%) were mostly flat in December. Our Crane 100 Money Fund Index and Crane Money Fund Average were 0.27% and 0.38%, respectively, as of Dec. 31, 2024. Crane Data revises its monthly expense data and gross yield information after the SEC updates its latest Form N-MFP data the morning of the 6th business day of the new month. (They posted this info Thursday morning, so we revised our monthly MFI XLS spreadsheet and historical craneindexes.xlsx averages file to reflect the latest expenses, gross yields, portfolio composition and maturity breakout.) Visit our "Content" page for the latest files.
Our Crane 100 Money Fund Index, a simple average of the 100 largest taxable money funds, shows an average charged expense ratio of 0.27%, unchanged from last month's level (also 19 bps higher than 12/31/21's 0.08%). The Crane Money Fund Average, a simple average of all taxable MMFs, showed a charged expense ratio of 0.38% as of Dec. 31, 2024, down 1 bp from the month prior and slightly below the 0.40% at year-end 2019.
Prime Inst MFs expense ratios (annualized) average 0.22% (down 1 bp from last month), Government Inst MFs expenses average 0.26% (down 4 bps from last month), Treasury Inst MFs expenses average 0.29% (unchanged from last month). Treasury Retail MFs expenses currently sit at 0.52%, (unchanged from last month), Government Retail MFs expenses yield 0.55% (unchanged from last month). Prime Retail MF expenses averaged 0.50% (unchanged from last month). Tax-exempt expenses were up 1 bp at 0.40% on average.
Gross 7-day yields were down during the month ended December 31, 2024. The Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 723), shows a 7-day gross yield of 4.55%, down 17 bps from the prior month. The Crane Money Fund Average was 1.72% at the end of 2019, 0.15% at the end of 2020 and 0.09% at the end of 2021. Our Crane 100's 7-day gross yield was also down 16 bps, ending the month at 4.55%.
According to our revised MFI XLS and Crane Index numbers, we now estimate that annualized revenue for all money funds is $19.293 billion (as of 12/31/24), a new record high. Our estimated annualized revenue totals increased from $19.105B last month and $18.473B seen two months ago. Revenue levels are more than six times larger than May's 2021's record-low $2.927B level. Charged expenses and gross yields are driven by a number of variables, but revenues should continue their climb higher as inflows resume to money funds following a pause around April 15.
Crane Data's latest monthly Money Fund Market Share rankings show assets increasing among most of the largest U.S. money fund complexes in December, after rising in November, October, September, August, July, June and May. Assets fell in March and April. Money market fund assets rose by $113.5 billion, or 1.6%, last month to a record $7.182 trillion. Total MMF assets have increased by $408.4 billion, or 6.0%, over the past 3 months, and they've increased by $864.5 billion, or 13.7%, over the past 12 months. The largest increases among the 25 largest managers last month were seen by JPMorgan, Fidelity, Goldman Sachs, Morgan Stanley and Federated Hermes, which grew assets by $28.6 billion, $27.5B, $26.6B, $21.6B and $16.7B, respectively. Declines in December were seen by American Funds, DWS and SSGA, which decreased by $25.4 billion, $6.3B and $5.8B, respectively. Our domestic U.S. "Family" rankings are available in our MFI XLS product, our global rankings are available in our MFI International product. The combined "Family & Global Rankings" are available to Money Fund Wisdom subscribers. We review the latest market share totals, and look at money fund yields, which were lower again in December.
Over the past year through Dec. 31, 2024, Fidelity (up $198.2B, or 15.6%), Schwab (up $120.1B, or 25.2%), JPMorgan (up $120.0B, or 18.6%), BlackRock (up $105.7B, or 20.7%) and Vanguard (up $78.1B, or 13.7%) were the `largest gainers. JPMorgan, Morgan Stanley, Fidelity, Goldman Sachs and BlackRock had the largest asset increases over the past 3 months, rising by $73.8B, $58.7B, $55.4B, $55.2B and $37.8B, respectively. The largest declines over 12 months were seen by: American Funds (down $36.2B), HSBC (down $6.1B), DWS (down $4.9B), PGIM (down $2.9B) and T Rowe Price (down $2.0B). The largest declines over 3 months included: American Funds (down $32.0B) and SSGA (down $8.3B).
Our latest domestic U.S. Money Fund Family Rankings show that Fidelity Investments remains the largest money fund manager with $1.466 trillion, or 20.4% of all assets. Fidelity was up $27.5B in December, up $55.4 billion over 3 mos., and up $198.2B over 12 months. JPMorgan ranked second with $764.8 billion, or 10.6% market share (up $28.6B, up $73.8B and up $120.0B for the past 1-month, 3-mos. and 12-mos., respectively). Vanguard ranked in third place with $647.0 billion, or 9.0% of assets (up $2.9B, up $26.8B and up $78.1B). BlackRock ranked fourth with $615.5 billion, or 8.6% market share (up $3.8B, up $37.8B and up $105.7B), while Schwab was the fifth largest MMF manager with $596.5 billion, or 8.3% of assets (up $10.9B, up $34.5B and up $120.1B for the past 1-month, 3-mos. and 12-mos.).
Federated Hermes was in sixth place with $480.2 billion, or 6.7% (up $16.7B, up $26.0B and up $43.4B), while Goldman Sachs was in seventh place with $463.7 billion, or 6.5% of assets (up $26.6B, up $55.2B and up $70.0B). Morgan Stanley ($307.1B, or 4.3%) was in eighth place (up $21.6B, up $58.7B and up $56.1B), followed by Dreyfus ($290.8B, or 4.0%; up $1.1B, up $8.0B and up $24.6B). SSGA was in 10th place ($251.5B, or 3.5%; down $5.8B, down $8.3B and up $27.1B).
The 11th through 20th-largest U.S. money fund managers (in order) include: Allspring (formerly Wells Fargo) ($218.2B, or 3.0%), Northern ($178.4B, or 2.5%), First American ($164.0B, or 2.3%), Invesco ($147.1B, or 2.0%), American Funds ($125.9B, or 1.8%), UBS ($112.7B, or 1.6%), T. Rowe Price ($48.0B, or 0.7%), HSBC ($41.7B, or 0.6%), DWS ($38.2B, or 0.5%) and Western ($30.6B, or 0.4%). Crane Data currently tracks 61 U.S. MMF managers, unchanged from last month.
When European and "offshore" money fund assets -- those domiciled in places like Ireland, Luxembourg and the Cayman Islands -- are included, the top 10 managers are the same as the domestic list, except: BlackRock moves up to the No. 3 spot, and Vanguard moves down to No. 4. Goldman Sachs moves up to the No. 5 spot, while Schwab moves down to the No. 6 spot and Federated Hermes moves down to the No. 7 spot. Global Money Fund Manager Rankings include the combined market share assets of our MFI XLS (domestic U.S.) and our MFI International ("offshore") products.
The largest Global money market fund families include: Fidelity ($1.485 trillion), JP Morgan ($1.029 trillion), BlackRock ($942.5B), Vanguard ($647.0B) and Goldman Sachs ($611.1B). Schwab ($596.5B) was in sixth, Federated Hermes ($491.6B) was seventh, followed by Morgan Stanley ($409.4B), Dreyfus/BNY Mellon ($318.3B) and SSGA ($301.4B), which round out the top 10. These totals include "offshore" U.S. Dollar money funds, as well as Euro and Pound Sterling (GBP) funds converted into U.S. dollar totals.
The January issue of our Money Fund Intelligence and MFI XLS, with data as of 12/31/24, shows that yields were lower in December across most Crane Money Fund Indexes. The Crane Money Fund Average, which includes all taxable funds covered by Crane Data (currently 723), was 4.19% (down 14 bps) for the 7-Day Yield (annualized, net) Average, the 30-Day Yield was also down 13 bps at 4.25%. The MFA's Gross 7-Day Yield was at 4.58% (down 14 bps), and the Gross 30-Day Yield was down 13 bps at 4.64%. (Gross yields will be revised once we download the SEC's Form N-MFP data for 12/31/24 on Thursday.)
Our Crane 100 Money Fund Index shows an average 7-Day (Net) Yield of 4.28% (down 16 bps) and an average 30-Day Yield at 4.35% (down 15 bps). The Crane 100 shows a Gross 7-Day Yield of 4.55% (down 16 bps), and a Gross 30-Day Yield of 4.62% (down 15 bps). Our Prime Institutional MF Index (7-day) yielded 4.39% (down 18 bps) as of Dec. 31. The Crane Govt Inst Index was at 4.31% (down 13 bps) and the Treasury Inst Index was at 4.25% (down 16 bps). Thus, the spread between Prime funds and Treasury funds is 14 basis points, and the spread between Prime funds and Govt funds is 8 basis points. The Crane Prime Retail Index yielded 4.15% (down 15 bps), while the Govt Retail Index was 4.02% (down 12 bps), the Treasury Retail Index was 4.01% (down 16 bps from the month prior). The Crane Tax Exempt MF Index yielded 3.21% (up 55 bps) as of December.
Gross 7-Day Yields for these indexes to end December were: Prime Inst 4.61% (down 18 bps), Govt Inst 4.61% (down 13 bps), Treasury Inst 4.53% (down 16 bps), Prime Retail 4.65% (down 15 bps), Govt Retail 4.57% (down 12 bps) and Treasury Retail 4.54% (down 16 bps). The Crane Tax Exempt Index rose to 3.61% (up 56 bps). The Crane 100 MF Index returned on average 0.37% over 1-month, 1.15% over 3-months, 5.08% YTD, 5.08% over the past 1-year, 3.75% over 3-years annualized), 2.32% over 5-years, and 1.61% over 10-years.
The total number of funds, including taxable and tax-exempt, was unchanged in October at 838. There are currently 723 taxable funds, unchanged from the previous month, and 113 tax-exempt money funds (down 2 from last month). (Contact us if you'd like to see our latest MFI XLS, Crane Indexes or Market Share report.)
The January issue of our flagship Money Fund Intelligence newsletter, which was sent to subscribers Wednesday morning, features the articles: "Yields Bottoming Near 4.20%; Assets Keep Breaking Records," which discusses the move lower and plateauing of yields and jumps in assets; "ICI: Worldwide MMF Assets Rise in Q3'24 to $11.2 Tril.," which looks at the latest MMF statistics outside the U.S.; and, "Top Money Funds of 2024; 16th Annual MFI Awards" which reviews the best performing MMFs of 2024. We also sent out our MFI XLS spreadsheet Wednesday a.m., and we've updated our Money Fund Wisdom database with 12/31/24 data. Our Jan. Money Fund Portfolio Holdings are scheduled to ship on Friday, December 10, and our Jan. Bond Fund Intelligence is scheduled to go out on Wednesday, January 15.
MFI's "Yields Bottoming" article says, "Money fund yields fell by 16 basis points to 4.28% on average during December (down from 5.20% at the start of 2024). Our Crane 100 Money Fund Index continues inching lower, falling to 4.23% as of 1/6/25. Fund yields have now digested most of the Federal Reserve's 25 basis point cut on Dec. 18, though they may inch a lower in coming days. But yields should remain solidly above 4.0% in the near-term, and they may even hold these levels for the entire year as expectations for more rate cuts evaporate."
It continues, "Yields on average have declined by 81 bps since the Fed first cut its Fed funds target rate by 50 bps percent on Sept. 18, and they've declined by 38 bps since the Fed cut rates by 1/4 point on 11/7. Yields were 4.45% on 11/30/24, 4.65% on 10/31, 4.75% on 9/30, 5.10% on 8/31, 5.13% on 7/31 and 6/28, 5.14% on 3/31/24 and 5.20% on 12/31/23."
We write in our Worldwide article, "The Investment Company Institute published, 'Worldwide Regulated Open-Fund Assets and Flows, Third Quarter 2024,' which shows that money fund assets globally rose by $572.9 billion, or 5.4%, in Q3'24 to a record $11.215 trillion. Increases were led by a sharp jump in money funds in U.S., Ireland and China, while Luxembourg and France also rose. Meanwhile, money funds in Mexico and Korea were lower. MMF assets worldwide increased by $1.271 trillion, or 12.8%, in the 12 months through 9/30/24, and MMFs in the U.S. now represent 60.4% of worldwide assets."
It states, "ICI's release says, 'Worldwide regulated open-end fund assets increased 6.8% to $74.95 trillion at the end of the third quarter of 2024, excluding funds of funds. Worldwide net cash inflow to all funds was $913 billion in the third quarter, compared with $819 billion of net inflows in the second quarter of 2024. The Investment Company Institute compiles worldwide regulated open-end fund statistics on behalf of the International Investment Funds Association (IIFA), the organization of national fund associations. The collection for the third quarter of 2024 contains statistics from 44 jurisdictions.'"
Our "Top Money Funds of 2024" piece says, "This issue recognizes the top performing money funds, ranked by total returns, for calendar year 2024, 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, 2023, in each of our major fund categories -- Prime Institutional, Government Institutional, Treasury Institutional, Prime Retail, Government Retail, Treasury Retail and Tax‐Exempt."
The piece continues, "The Top-Performing Prime Institutional fund (and fund overall) was BlackRock Cash Inst MMF SL (BISXX), which returned 5.43%. Among Prime Retail funds, Schwab Value Adv MF Ultra (SNAXX) had the best return in 2024 (5.36%). (Our Crane 100 Money Fund Index returned 5.08% in 2024.)"
MFI also includes the News brief, "Fed Cuts Rates Another 1/4 to 4.375%. The FOMC's Statement says, 'Inflation has made progress toward the Committee’s 2 percent objective but remains somewhat elevated.... In support of its goals, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/4 to 4-1/2 percent.'"
Another News brief, "J.P. Morgan's 'Mid-Week US Short Duration Update,' features, 'November MMF Holdings Update: Sufficient Supply Meeting MMFs' Demand.' It states, 'Taxable MMFs experienced another strong month of inflows in November, with AUMs increasing by nearly $200bn, bringing total balances to just under $7tn. Despite this significant rise in balances, MMFs successfully found enough supply to meet their demand throughout the month, aided by a rise in T-bill, repo, and time deposit outstandings. As a result, MMFs' use of ON RRP fell to an end-of-month low since May 2021.'"
A third News brief, "SEC Stats: MMF Assets Jump to Record $7.13 Tril. in Nov., Yields Fall," says, "The SEC's 'Money Market Fund Statistics' show that total money fund assets rose by $197.8 billion in November to a record $7.125 trillion. Prime MMFs increased $12.9 billion to $1.187 trillion, Govt & Treasury funds increased $181.5 billion to $5.797 trillion and Tax Exempt funds increased $3.4 billion to $141.3 billion. Taxable yields fell again in November after plunging in October.'"
A sidebar, "WSJ on Why to Cheer MMFs," says, "The Wall Street Journal tells us, 'Why You May Want to Cheer for Money-Market Funds.' Subtitled, 'Money funds remain an attractive place for excess cash and can help keep a lid on short-term borrowing costs,' the article says, 'Cash might be a trash asset to some risk-loving traders. But it's a pretty good thing to have sloshing around the economy. U.S. money-market fund assets have so far through mid-December grown by over $800 billion in 2024, bringing the nearly two-year gain since the end of 2022 to roughly $2 trillion, according to [ICI]. This continuing flow may be a surprise to some. At points in 2024, it often seemed that Fed ... cuts, plus a bullish tilt to equity markets, would push more investors out of cash.'"
Our January MFI XLS, with Dec. 31 data, shows total assets increased $113.0 billion to a record $7.184 trillion, after increasing $196.1 billion in November, $89.9 billion in October, $155.2 billion in September, $105.6 billion in August, $19.7 billion in July, $11.8 billion in June and $79.7 billion in May. They decreased $17.6 billion in April and $66.7 billion in March, but increased $50.0 billion in February and $87.0 billion last January.
Our broad Crane Money Fund Average 7-Day Yield was down 15 bps at 4.19%, and our Crane 100 Money Fund Index (the 100 largest taxable funds) was also down 16 bps at 4.28% in December. On a Gross Yield Basis (7-Day) (before expenses are taken out), the Crane MFA and the Crane 100 averaged 4.58% and 4.55%. Charged Expenses averaged 0.39% and 0.27% for the Crane MFA and the Crane 100. (We'll revise expenses once we upload the SEC's Form N-MFP data for 12/31/24 on Thursday, 1/9.) The average WAM (weighted average maturity) for the Crane MFA was 37 days (up 1 bp) and the Crane 100 WAM was unchanged from the previous month at 37 days. (See our Crane Index or craneindexes.xlsx history file for more on our averages.)
Money fund yields (7-day, annualized, simple, net) fell by 2 basis point to 4.25% on average during the week ended Friday, Jan. 3 (as measured by our Crane 100 Money Fund Index), after falling 7 bps the week prior and 7 bps two weeks prior. Fund yields have digested the majority of the Federal Reserve's 25 basis point cut from December 18, though they should continue to move lower in coming days. They've declined by 81 bps since the Fed first cut its Fed funds target rate by 50 bps percent on Sept. 18, and they've declined by 38 bps since the Fed cut rates by 1/4 point on 11/7. Yields were 4.45% on 11/30, 4.65% on average on 10/31, 4.75% on 9/30, 5.10% on 8/31, 5.13% on 7/31 and 6/28, 5.14% on 3/31 and 5.20% on 12/31/23.
The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 678), shows a 7-day yield of 4.16%, down 2 bps in the week through Friday. Prime Inst money fund yields were down 2 bps at 4.35% in the latest week. Government Inst MFs were down 2 bps at 4.28%. Treasury Inst MFs were down 4 bps at 4.20%. Treasury Retail MFs currently yield 3.99%, Government Retail MFs yield 3.96%, and Prime Retail MFs yield 4.15%, Tax-exempt MF 7-day yields were down 46 bps to 2.80%.
Assets of money market funds rose by $84.5 billion last week to a new record high of $7.248 trillion, according to Crane Data's Money Fund Intelligence Daily. For the month of January, MMF assets have jumped by $74.0 billion, after increasing by $110.9 billion in December, $200.5 billion in November, $97.5 billion in October and $149.8 billion in September. Weighted average maturities were down 1 day at 37 days for the Crane MFA and down 1 day at 37 days for the Crane 100 Money Fund Index.
According to Monday's Money Fund Intelligence Daily, with data as of Friday (1/3), 87 money funds (out of 790 total) yield under 3.0% with $94.0 billion in assets, or 1.3%; 164 funds yield between 3.00% and 3.99% ($317.5 billion, or 4.4%), 539 funds yield between 4.0% and 4.99% ($6.836 trillion, or 94.3%) and following the recent rate cut there continue to be zero funds yielding 5.0% or more.
Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was down 1 bp at 0.43%, after dropping 2 basis points two weeks prior. The latest Brokerage Sweep Intelligence, with data as of Jan. 3, shows one change over the past week. RW Baird lowered rates to 1.37% for accounts between $1 and $999K, to 2.17% for accounts of $1M to $1.9M and to 2.83% for accounts of $5M or greater. Three of the 10 major brokerages tracked by our BSI still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
In other news, Federated Hermes' latest monthly insight, titled, "A gorgeous vista for cash managers," is subtitled, "Three things to watch in 2025." Author Deborah Cunnigham states, "After a year of ever-changing clouds, monetary policy looks clearer in 2025. The Federal Reserve seems to finally have realized it miscalculated in September by slashing rates. Inflation had already plateaued and the labor market was weakening, but hardly weak. Faced with a strong economy, officials have wised up to the reality that policy must be restrictive for longer and now project just two quarter-point cuts this year."
She continues, "In retrospect, it's odd that Chair Jerome Powell eagerly supported the easing campaign, as he consistently says he wants to avoid the Fed's mistake of easing too early in the 1970s. He has to be careful. Losing favor with Trump has nothing on losing credibility with investors or his colleagues -- the latter hinted at with recent FOMC dissents. But if this newly cautious Fed makes good on its revised projections, the slower pace is great news for the money markets, as it could mean yields will be even more attractive."
Cunningham says, "It's problematic enough that inflation has been persistent. If it starts to meaningfully rise, look out. But that's the danger of some of the policies Trump has promised to enact. While the post-Covid economy has not followed textbooks, a potential combination of more federal tax cuts, expanded government expenditures, additional tariffs and significant deportations could increase price pressures. While that might not be felt in 2025, the Fed might try to counter fiscal policy by further slowing the pace of cuts. The potential impact on liquidity products? See the previous paragraph's last sentence above, with an emphasis on 'even more.'"
She adds, "Trump's desire to reduce regulations is sure to be disruptive, but might lead to calm at the SEC -- and less market interference. The majority of the five commissioners will flip Republican, and the new administration has a pro-business agenda.... Outgoing Chair Gary Gensler had an adversarial relationship with financial institutions and issued many rules, some we feel were unnecessary, without proper dialogue with market participants. A healthy dynamic between the agency and markets should emerge if Trump's nominee, Paul Atkins, is confirmed. Expect more sensible regulations and attempts to rollback some onerous ones implemented under Gensler."
It appears that most money market mutual funds will be open on Thursday, January 9, though the New York Stock Exchange and stock markets will close for the National Day of Mourning for the death of former President James "Jimmy" Carter. Money funds had previously closed for the President Bush Day of Mourning but many were open for the President Ford Day of Mourning. So far, Fidelity, BlackRock, J.P. Morgan Asset Management and Federated Hermes have announced that they will be open, though some of BlackRock's retail MMFs will close. Given this news, Crane Data will remain open and will publish our Money Fund Intelligence Daily, MFI International and Form N-MFP Holdings on their usual schedule Thursday.
BlackRock says in a message to clients, "Thursday, January 9, 2025, has been designated a National Day of Mourning in the United States to honor the passing of former President James Earl Carter, Jr.. The New York Stock Exchange, Nasdaq Inc.'s U.S. equities and options markets and CME Group Inc's. U.S.-based equity markets will be closed on that day. The Securities Industry and Financial Markets Association has recommended that U.S. bond markets close early at 2 PM ET. Banks, including the Federal Reserve Bank of New York, will remain open on January 9."
They explain, "Accordingly, the following funds will be open on January 9 and calculate both a NAV and 1-day distribution rate: BlackRock Liquidity Funds: FedFund, MuniCash, T-Fund and TempCash; BlackRock Cash Funds: Inst and Treas; BlackRock Institutional Cash Series plc: ICS US Dollar Liquidity Fund, ICS US Treasury Fund, ICS US Dollar LEAF and ICS US Dollar Ultra Short Bond Fund. The following funds will be open ... but will close at 2:00 PM ET: BlackRock Liquidity Funds: Treasury Trust Fund and Liquid Federal Trust Fund. The below funds will be closed on January 9: BlackRock Wealth Liquid Environmentally Aware Fund, BlackRock Government Money Market Portfolio, BlackRock Government Money Market V.I. Fund, Summit Cash Reserves Fund, Circle Reserve Fund and BlackRock Short Obligations Fund."
A message from Federated Hermes states, "All Federated Hermes' money market funds and liquidity products will be open for business as usual on January 9, 2025. In addition to Federated Hermes money market funds, certain advisory products and accounts, the Federated Hermes Prime Cash Collective Investment Fund, and the Federated Hermes Prime Private Liquidity Fund will be open for trading."
In other news, a "US Regulatory Intelligence" update from law firm Norton Rose Fulbright titled "SEC Mandates Broker-Dealers Calculate Cash Custody Daily," explains, "The SEC adopted amendments to Exchange Act Rule 15c3-3 ('Customer protection-reserves and custody of securities'). The amendments require broker-dealers that carry over $500 million in customer credit to perform daily cash reserve account calculations." They tell us, "The amendments: require certain broker-dealers to increase the frequency of the computations of the net cash they owe to customers and other broker-dealers from weekly to daily under Rule 15c3-3" and "permit certain broker-dealers that perform a daily customer reserve computation to decrease the required 3 percent 'buffer' in the customer reserve bank account by reducing the customer-related receivables charge (i.e. aggregate debit items charge) from 3 percent to 2 percent in the computation under Rules 15c3-3 and 15c3-1—the broker-dealer net capital rule."
The brief says, "SEC Chair Gary Gensler highlighted that 'nine of the largest broker-dealers already make these calculations on a daily basis.' He stated that '[the] amendments are intended to reduce the likelihood of any mismatch between the amount of segregated funds and the net cash owed to customers and other broker-dealers,' and that 'lowering the likelihood of mismatches will help to protect the Securities Investor Protection Corporation (SIPC) Fund.'
Author Steven Lofchie continues, "SEC Commissioner Hester M. Peirce said that, while the final amendments 'are not perfect,' they are 'net beneficial to investors.' She highlighted that '[the amendments] increase costs and operational challenges for 40 of the estimated 49 broker-dealers subject to the daily computation requirement,' but concluded that 'the final amendments do incorporate an increased threshold for triggering the requirement that mitigates some of the costs. In addition, it allows carrying broker-dealers that use the alternative method for net capital and perform a daily customer reserve computation to reduce their aggregate debit items by 2% (instead of the 3% that is currently required)."
The piece adds, "In dissent, SEC Commissioner Mark T. Uyeda argued that the Commission overlooked 'many suggestions from commentators that might potentially lower cost while still reducing risk.' He said that the adoption was rushed in an 'apparent attempt' to finalize the amendments prior to the end of the current administration. Mr. Uyeda said that the SEC should have taken additional time to consider comments and data as well as interact with the public. He argued that the SEC 'may end up leaving yet another mess for its successors to clean up.'"
The publication FinanceFeeds also comments on the new rule in, "SEC enhances customer protection rules for broker-dealers." They write, "The Securities and Exchange Commission (SEC) has adopted amendments to its customer protection rule, Rule 15c3-3. The amendments require certain broker-dealers to change the frequency of their net cash computations from weekly to daily. The change aims to safeguard better customer and PAB (broker-dealer's proprietary accounts) cash."
Their article continues, "SEC Chair Gary Gensler endorsed amendments requiring large broker-dealers to compute and segregate customer balances daily, rather than weekly. He noted that these changes reflect the evolution of markets since 1972, when the Customer Protection Rule first took effect. He explained that daily calculations help reduce mismatches between segregated funds and cash owed to customers. Gensler also noted a reduction of the reserve 'buffer' from 3 percent to 2 percent for broker-dealers performing daily computations."
They quote Gensler, "The Customer Protection Rule requires broker-dealers that custody customers' cash and securities to maintain a special reserve bank account that contains the net cash a broker-dealer owes to its customers. The rule, which we're updating, currently requires broker-dealers to calculate and deposit the appropriate balance for that account on a weekly basis. Today's amendments would change this requirement for the largest broker-dealers to daily computation rather than weekly."
Finally, the piece also quotes SEC Commissioner Hester Peirce, "I hope that broker-dealers will take the Commission up on its invitation to engage with the staff on potential issues in dealing with what one commenter called 'cash in motion.' I also look forward to receiving feedback on any operational challenges that arise as broker-dealers implement these requirements, particularly with respect to exigent circumstances and potential challenges with resources around holidays and days when the markets close early."
ICI's latest "Money Market Fund Assets" report shows money fund assets surging $42.1 billion in the last week of the year to a record $6.848 trillion, after jumping $54.7 billion the previous week. Money fund assets have risen in 16 of the last 22, and 27 of the last 37, weeks, increasing by $544.2 billion (or 8.6%) since the Fed cut on 9/18 and increasing by $870.3 billion (or 14.6%) since April 24. MMF assets are up by $961 billion, or 16.3%, in 2024 (through 12/31/24), with Institutional MMFs up $519 billion, or 14.4% and Retail MMFs up $443 billion, or 19.3%. (Note: Thanks to our subscribers and readers for all your support in 2024 and best of luck in 2025. Happy New Year!)
ICI's weekly release says, "Total money market fund assets increased by $42.05 billion to $6.85 trillion for the week ended Tuesday, December 31, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $41.28 billion and prime funds decreased by $751 million. Tax-exempt money market funds increased by $1.52 billion." ICI's stats show Institutional MMFs increasing $23.4 billion and Retail MMFs increasing $18.8 billion in the latest week. Total Government MMF assets, including Treasury funds, were $5.633 trillion (82.3% of all money funds), while Total Prime MMFs were $1.079 trillion (15.8%). Tax Exempt MMFs totaled $135.7 billion (2.0%).
It explains, "Assets of retail money market funds increased by $18.78 billion to $2.73 trillion. Among retail funds, government money market fund assets increased by $12.07 billion to $1.74 trillion, prime money market fund assets increased by $5.22 billion to $864.65 billion, and tax-exempt fund assets increased by $1.49 billion to $124.51 billion." Retail assets account for over a third of total assets, or 39.9%, and Government Retail assets make up 63.8% of all Retail MMFs.
They add, "Assets of institutional money market funds increased by $23.26 billion to $4.12 trillion. Among institutional funds, government money market fund assets increased by $29.21 billion to $3.89 trillion, prime money market fund assets decreased by $5.98 billion to $214.02 billion, and tax-exempt fund assets increased by $28 million to $11.21 billion." Institutional assets accounted for 60.1% of all MMF assets, with Government Institutional assets making up 94.5% of all institutional MMF totals.
According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets rose by $110.9 billion in December through 12/31 to a record $7.174 trillion. Assets rose by $200.5 trillion in November, $97.5 billion in October, $149.8 billion in September, $109.7 billion in August, $16.6 billion in July, $15.7 billion in June and $91.4 billion in May. They declined by $15.8 billion in April and $68.8 billion in March. They rose $72.1 billion in February, $93.9 billion in January and $32.7 billion last December. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're about $340 billion lower than Crane's asset series.
TheStreet.com writes on "Money Market ETFs: Yes, they’re a Thing Now, But Read this First Before Buying. They comment, "Managing cash has never been easier, thanks to the rise of ETFs. If your goal is to keep your principal safe while earning a little on the side, you've already had solid options like Treasury bill ETFs or ultra-short-term bond ETFs. Both come with low credit risk, monthly distributions, and yields tied to prevailing short-term interest rates."
The brief continues, "Now, there's a new player on the block: money market ETFs. The Texas Capital Government Money Market ETF (MMKT) debuted on September 24, 2024, and brings the simplicity of money market investing into an ETF structure. As of December 19, it boasts a 4.49% seven-day SEC yield with a reasonable 0.2% expense ratio."
It explains, "But before you invest, it's important to understand that money market ETFs don't function quite the same way as the money market mutual funds you might already know. The ETF structure adds some quirks that could catch you off guard. Here's what you need to know before making the leap.... MMKT ... is a different story. As an ETF, it doesn't have a fixed NAV of $1 and trades throughout the day on an exchange. That distinction introduces some nuances you won't experience with a money market mutual fund."
The piece adds, "This means you could, in theory, experience an unrealized loss with MMKT. For example, if you buy shares just before the ex-distribution date -- when the NAV is at its peak -- you'll see a drop in value that might take time to recoup, depending on when you sell. Additionally, there's the matter of the bid-ask spread."
For more see our Nov. 18 Link of the Day, "FT on BlackRock Money Market ETFs," our Nov. 12 Link of the Day, "BlackRock Files for Money Market ETFs," and our Sept. 26 Link of the Day, "Texas Capital Launches Govt MM ETF."
Finally, a release titled, "SIFMA Recommends Early Market Close on January 9, 2025, for the National Day of Mourning in Honor of Former President Carter" explains, "SIFMA joins the nation in expressing its condolences on the passing of former President Jimmy Carter.... SIFMA today recommended an early market close at 2:00 pm EST on January 9, 2025, for all fixed-income cash markets in recognition of the National Day of Mourning in honor of the 39th President of the United States. This is in keeping with SIFMA's policy on unscheduled changes in trading hours. This recommendation applies to trading of U.S. dollar-denominated government securities, mortgage- and asset-backed securities, over-the-counter investment-grade and high-yield corporate bonds, municipal bonds and secondary money market trading in bankers' acceptances, commercial paper and Yankee and Euro certificates of deposit. SIFMA's recommended early and full market closes are recommendations only; each member firm should decide for itself whether its fixed income departments remain open for trading. All SIFMA recommendations are subject to change due to market conditions." (Note: We'll see and we'll keep you posted, but `Crane Data expects most money market funds to close for the Jan. 9 Day of Mourning.)
Over the past decade, we've been recapping money market fund lineup changes driven primarily by regulatory reforms in a series of "Roll with the Changes" news items. (Our thanks and apologies to the REO Speedwagon.) At the start of the New Year in many of these years, we'd review the major shifts and changes fund managers made ahead of and around the major rounds of reforms in 2016 and in 2023-24. While 2023 didn't see many exits from Prime MMFs or other shifts in preparation of the latest round of Money Fund Reforms (the year was eventful due to record assets and 5% yields though), 2024 did see a number of shifts and exits. Looking back, a year ago, we wrote "Rolling w/Reform Changes V: Little Change in '23 Ahead of MMF Reforms" (1/5/24), and 3 years ago, we wrote "Rolling w/Reform Changes IV: Recap of '21 Exits & Entries, ESG & News" (1/4/22).
Four years ago, we wrote "Rolling w/Reform Changes III: Recap of '20 Prime Exits, News & Moves" (1/7/21), which explained, "In January 2016, money market mutual funds were in the midst of a series of dramatic changes ahead of October 2016's Money Fund Reforms, the biggest changes to money fund regulations since their introduction in October 1970. Nine years ago, we ran the story, "Rolling w/Reform Changes II: Recap of '15 Announcements, '16 Plans" (1/6/16) which reviewed a number of major changes among the largest managers that took place during 2015. (We wrote the original "Managers Rolling with Reform Changes; Recap of Announcements So Far" on July 22, 2015.)
As with many of these past years, exits from Prime MMFs and fund repositioning were notable trends in 2024, as dozens of Prime Inst funds and over $400 billion in assets converted to Government or liquidated." Below, we review these changes and lineup shifts over the past year, as money funds implemented the latest (and perhaps final) round of regulatory changes. (See also our "Dec. 4, 2024 News, "Top 10 Stories of 2024: Assets Break $7 Trillion, Yields Heading Lower. Note: Readers may also review "Crane Data's News," "Link of the Day" and "Money Fund Intelligence Archives" for more stories from the past year, 5 years and decade-plus.)
We saw a steady stream of liquidations and lineup changes in 2024 ahead of the October deadline for Prime Inst MMFs' new emergency liquidity fee regime. In August, we wrote: "SSGA Sticks w/Prime Inst Money Funds; Discusses Reforms; Benchmarks" (8/29/24), "Prime Inst Exits Take Effect: Allspring, DWS, UBS; NY Fed RRP Updates" (8/27/24), "Aug. MFI: Prime Inst Conversions; Q2 Earnings on Sweeps; More Deposits" (8/7/24) and "J.P. Morgan's Donohue Makes Case for Prime Institutional Money Funds (8/1/24).
In July, June and May, we posted, "First American Inst Prime Obligations to Invest Solely in Liquid Assets" (7/23/24), "Schwab, JPM, Meeder Announce Prime Inst Conversions to Government" (7/18/24) "BoardIQ Writes on Prime Inst Exodus" (6/21/24), "Invesco Files to Liquidate Prime Inst MMFs; UBS MF Converting to Retail" (6/13/24), "June MFI: Latest Prime Inst MF Exits; ICI's 2024 Fact Book; Treasury Bills" (6/7/24) and "Federated Hermes Merging Prime Inst Money Funds; Prime Value To POF" (6/6/24) and "ICI's Pan, SEC's Gensler Discuss Liquidity Fees, Prime Inst Money Funds" (5/28/24).
While minor, we also wrote about fund liquidations, moves and changes, particularly in the Tax-Exempt or Municipal MMF space, in these updates: "ICI: Money Fund Assets Break Over $6.5 Trillion; BNY Liquidates Muni MF" (10/25/24), "UBS Files to Liquidate Tax-Free Fund" (10/15/24), "Alight Money Fund Liquidates; Bloomberg Law on Brokerage Sweep Suits" (9/19/24), "Dreyfus NY Muni MMF Liquidating" (8/14/24) and "Empower Govt MMF Liquidates" (6/24/24).
In addition to the sporadic exits and shifts, we saw continued launches in the D&I and Social space (and exits in the ESG fund space). We wrote: "Morgan Stanley Puts Impact Partner Class on Portal; UBS Changes Cutoff" (6/25/24), "Ramirez Govt MMF Partners w/Hispanic Fund; JPM: T-Bills to Go Bigger" (6/4/24), "DWS Liquidating ESG Liquidity Fund, 7th Prime Inst to Exit; MM Basics" (5/22/24) and "Ramirez Asset Management Launches Government MMF; Federated on 24" (1/3/24).
Finally, a number of articles discussed the final implementation of U.S. MMFs Reforms, including: "Federated Hermes' Earnings Call Discusses MMF Surge, Reforms, Direct" (10/28/24), "Bloomberg, ignites on Latest MMF Reforms; Prime Inst Shift a Nonevent" (10/23/24), "SSGA Sticks w/Prime Inst Money Funds; Discusses Reforms; Benchmarks" (8/29/24), "SEC's Money Fund Reforms One Year Later: Disclosures Latest to Go Live" (7/12/24), "Citi's Williams on Impact from MMF Reforms: No Big Deal; Assets Higher" (5/21/24), "JPM Sees Minor Impact on CP/CDs from Shift; Cunningham on Reforms" (5/26/24), "April MFI: Reforms Trigger Prime Shift; Bond Fund Event; ICI Worldwide" (4/5/24), "Fed Blog Shows Declines in Deposits Offset; Wells Fargo on MMF Reforms" (3/28/24) and "FSB's Thematic Review on Money Fund Reforms Reviews Global Markets" (2/28/24).
Happy New Year from Crane Data and Money Fund Intelligence! We'll be sure to keep you posted on product developments and any news impacting money market funds in 2025. So best wishes and thanks for your continued support!
