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iMoneyNet News Exclusives
U.S. MONEY FUNDS REVERSE LAST WEEK’S ASSET GAINS   9/2/2015
U.S. money-market fund assets fell by $29.34 billion for the week ended Sept. 1. The decline was the largest since the week ended April 14 and followed last week’s gains of $20.82 billion, according to Money Fund Report®, a service of iMoneyNet in Westborough, Mass. more
USD FUNDS CONTINUE RECENT ASSET GROWTH   9/2/2015
U.S. dollar-denominated Government money-market fund assets jumped $7.85 billion for the week ended 28 Aug., according to iMoneyNet, an Informa business. The large increase contrasted with reported outflows by all other categories except for euro-denominated Government funds. more
SEC STAFF CLARIFICATIONS HELPFUL, FIRST AMERICAN’S ISAACSON SAYS   8/21/2015
From Money Fund Report®: The deadline for money-market fund providers to begin complying with “material-event” provisions of Form N-CR – the first of several deadlines set by the Securities and Exchange Commission as part of money-fund reform – passed uneventfully on July 14. It was followed by the Aug. 4 release of revised frequently-asked questions answered by the SEC’s Division of Investment Management. more
UP-AGAIN, DOWN-AGAIN TREASURY REPO UP AGAIN IN JULY   8/13/2015
From Money Market Insight™: Investments by U.S. prime-fund portfolio managers in Treasury-issued repurchase agreements continued their roller-coaster ride, falling in July by 78.3 percent after soaring in June by 236.1 percent, according to preliminary data reviewed by iMoneyNet. Values of Treasury repo investments for the month totaled $32.22 billion, down from $148.43 billion in June, a drop of $116.21 billion. The huge decline followed two consecutive months of increases, preceded by nearly alternating months of gains and losses since January. Investments in government-agency repurchase agreements increased modestly in July to $54.55 billion from $52.93 billion in June, a jump of $1.61 billion or 3.1 percent. more
MMF CHARGED EXPENSES TRENDING HIGHER   7/30/2015
From Money Fund Report®: Money-fund sponsors on average are passing along higher charged fees and expenses to investors, according to Money Fund Expense Report™, amid expectations that the Federal Reserve will begin to raise the federal funds target rate before year-end. more
FITCH: STRATEGIC POSITIONING REFLECTED IN MONEY FUND WAMs   7/24/2015
From Money Fund Report®: Trends in the weighted average maturities of prime money-market funds reflect strategic positioning by fund managers in advance of a federal funds rate increase later this year and of the October 2016 compliance deadline for money-market fund reforms, Fitch Ratings indicated recently. more
DESIGNATION OF FUND FIRMS ON “SLOWER TRACK” THAN ACTIVITIES REVIEWS   7/21/2015
From Offshore Money Fund Report™: The 17 June announcement by the International Organization of Securities Commissions that it would depart from the approach it had jointly been taking with the Financial Stability Board to mitigate risks in the asset-management industry may already have had some effect on the approach European regulators will take toward the fund industry. The effect on U.S. regulators is less clear, however. more
TREASURY, AGENCY REPO INVESTMENTS RISE IN JUNE   7/14/2015
From Money Market Insight™: Investments by U.S. prime-fund portfolio managers in Treasury-issued repurchase agreements soared in June by $104.27 billion, according to preliminary data reviewed by iMoneyNet. Investments in Treasury-issued repo for the month totaled $148.43 billion, up from $44.16 billion in May, or 236.1 percent. more
10-YEAR ENHANCED-CASH ASSET GROWTH LED BY ULTRASHORT BOND FUNDS   7/9/2015
Assets of U.S.-based Ultrashort Bond funds reached a 10-year peak of $335.3 billion on March 31, according to Enhanced Cash Report™ data. The Ultrashort Bond funds accounted for 51.6 percent of all assets reported by iMoneyNet for the beyond-MMF product space during the first quarter. more
ASSET GROWTH OF NEARLY $14 BILLION FOR U.S. MONEY FUNDS   7/8/2015
U.S. money-market fund assets jumped $13.57 billion for the week ended July 7, according to Money Fund Report®, a service of iMoneyNet in Westborough, Mass., the third consecutive week of reported industry asset gains. more
MINIMAL EFFECT ON RETIREMENT PLANS, EXPERTS SAY OF MMF REFORM   6/25/2015
From Money Fund Report®: The effect of money-market fund reform on fund options offered in defined-contribution retirement plans remains somewhat unclear, despite a spate of announcements from money-fund sponsors in recent months about new fund offerings, conversions, and realignments. DC plan sponsors may not announce the investment options they’ll be offering to participants until all fund firms release details of their new lineups, but experts tell Money Fund Report® that prime funds will remain an important retirement-plan option. more
ICI MAKES “SAFE-HARBOR” REQUEST TO IRS   6/18/2015
From Money Fund Report®: The Investment Company Institute, concerned about the tax implications for money-market fund advisers that provide capital contributions to funds prior to October 2016 compliance with fund reforms, asked the Internal Revenue Service in a June 4 letter to provide a “safe-harbor” exemption for adviser contributions. more
FEDERATED UNVEILS RETAIL LINEUP, OTHERS TAKE SIMILAR STEPS   6/12/2015
From Money Fund Report®: Federated Investors has announced what it described as “further refinements to its plans to restructure the company’s line of money-market funds.” The June 4 release delineated “which money-market funds will be classified as retail funds under the Securities and Exchange Commission rules passed in July 2014” and also revealed planned mergers “with the aim of strengthening and streamlining its money-market-fund offerings.” more
TREASURY REPO REBOUNDS, FINANCIAL CP EDGES UP IN MAY   6/12/2015
From Money Market Insight™: Investments by U.S. prime-fund portfolio managers in Treasury-issued repurchase agreements increased in May by $12.98 billion after tumbling in April by more than 80.0 percent, according to preliminary data reviewed by iMoneyNet. Investments in Treasury-issued repo totaled $44.16 billion in May compared to $31.18 billion in April, a monthly increase of 41.6 percent. Investments in government-agency repo decreased by $7.25 billion or 14.3 percent to $43.33 billion. more
MMF PROXY VOTES FRAUGHT WITH COMPLICATIONS, COSTS   6/4/2015
From Money Fund Report®: Not all money-market fund providers that are planning reform-triggered lineup changes will need shareholder approval for those changes, Stephen Cohen, senior associate at Dechert LLP, and Laura Bissell, senior managing director and head of the mutual-fund group at Okapi Partners, told Money Fund Report® last week. But those whose fund conversions or realignments do require a thumbs-up from shareholders should recognize the complexity and the cost of organizing and executing shareholder votes and begin the proxy solicitation process well ahead of the October 2016 compliance deadline set by the Securities and Exchange Commission. more
INDUSTRY CONCERNS DOMINATE RESPONSE TO SEC STAFF MMF GUIDANCE   5/22/2015
From Money Market Insight™: There were few surprises and some useful clarification in the money-market fund-reform guidance released April 22 by Securities and Exchange Commission staff. Nonetheless, responses to some questions addressed by the SEC staff may not have provided the clarity industry participants hoped for, which may lead to one or more additional rounds of FAQs prior to the October 2016 compliance deadline. more
TIME FOR RATERS AND FUND MANAGERS TO RECONSIDER USE OF TIER-2 CP?   5/22/2015
From Money Market Insight™: Two prominent portfolio managers in the money-market fund industry think that it is time to have a conversation with the rating agencies about tier-2 commercial paper and money-market fund ratings. more
CORRECTION   5/19/2015
An incorrect item was included in Money Fund Report® (dated May 8) regarding Oppenheimer money funds. more
APRIL HOLDINGS DATA: TREASURY REPO DOWN, FINANCIAL CP UP   5/14/2015
From Money Market Insight™: Investments by U.S. prime-fund portfolio managers in Treasury-issued repurchase agreements tumbled in April by 80.4 percent after soaring by more than 200 percent in the prior month, according to preliminary data reviewed by iMoneyNet. Investments in Treasury-issued repo totaled $31.18 billion in April, down by $127.67 billion from the March total of $158.85 billion. Investments in government-agency repo increased by $3.66 billion or 7.8 percent to $50.58 billion. more
CHARGED EXPENSES SIT LOW   5/14/2015
From Money Fund Expense Report™: Use of fee waivers by 1,385 money-market funds surveyed by Money Fund Expense Report™ during the first quarter was 98.6 percent, as every Tax-Free fund waived at least some fees for the ninth consecutive quarter. The percentage of Taxable funds waiving fees during the three months was 98.0 percent. more
CONCERNS PERSIST AFTER PARLIAMENT APPROVES MMF REFORM   5/7/2015
From Offshore Money Fund Report™: The European Parliament, apparently persuaded that constant-net-asset-value money-market funds pose a systemic risk to the European financial system, voted 29 April to approve – without amendments – a money-market fund reform proposal that could have the effect of phasing out the European constant-net-asset-value fund industry. The vote advances the reform proposal to the Council of Ministers where reform opponents may propose amendments to mitigate provisions in the legislation they say will threaten the money-fund industry and increase borrowing costs for European households and corporations. more
INVESCO’S KATZ SPEAKS OF LONGTIME 60-DAY FUND AND NEWCOMERS/HEARD AT MMX 2015   4/17/2015
From Money Market Insight™: Federated Investors’ expressed intent to create “60-day” prime institutional funds and BlackRock’s mention of a possible “7-day” fund to meet investor needs are being much discussed and reviewed by competing money-market fund sponsors as the Securities and Exchange Commission’s mandate to convert prime institutional funds to floating-net-asset-value structures is to kick in within about 20 months. more
COMMENT LETTERS CONTEST ASSET-MANAGEMENT SYSTEMIC RISKS   4/16/2015
All but a handful of 58 letters sent to the Financial Stability Oversight Council during a public-comment period that ended March 25 rebutted the contention that asset-management products and activities pose a systemic threat to the global financial system. more
TREASURY REPO HOLDINGS SOAR IN MARCH, DATA SHOW   4/15/2015
From Money Market Insight™: Investments by U.S. prime-fund portfolio managers in Treasury-issued repurchase agreements soared during March by 201.0 percent to $158.85 billion from $52.85 billion in February based on amortized cost, according to preliminary data reviewed by iMoneyNet. Investments in government-agency repo inched up by $248.31 million or 0.5 percent after a February decline of $9.93 billion or 17.6 percent. more
ALPINE TO LIQUIDATE SOLE MMF THIS MONTH   4/9/2015
From Money Fund Report®: The $109.3 million Alpine Municipal Money Market Fund, after almost 13 years in operation, will be liquidated and closed “on or about April 28,” according to a recent Securities and Exchange Commission filing. more
U.S. MONEY FUND ASSETS DOWN BY $4.9 BILLION   4/8/2015
U.S. money-market fund assets declined by $4.92 billion for the week ended April 7, according to Money Fund Report®, a service of iMoneyNet in Westborough, Mass. It was the second consecutive week of MMF asset declines, but considerably less than the prior week’s outflow of $44.36 billion. more
RBC’s DONOHUE SEES REGULATORY REFORM AS RARE OPPORTUNITY   3/26/2015
From Money Fund Report®: With three U.S. money-fund portfolios comprised of both retail and institutional share classes, and with fully 83.8 percent of $16.53 billion of total fund assets as of March 17 held by retail customers, RBC Global Asset Management is in the process of deciding this year, like most of its competitors, what its product lineup will be in 18 months or so when the new money-fund rules are to be fully implemented. more
SIZABLE ASSET REBOUND FOR U.S. MONEY FUNDS   3/25/2015
Assets flowing into U.S. money-market funds for the week ended March 24 more than compensated for corporate tax-related outflows in the prior week, according to Money Fund Report®, a service of iMoneyNet in Westborough, Mass. The $32.27 billion increase was the largest one-week gain since the third week of October 2013. more
FUND LINEUPS, COMPLIANCE ISSUES DOMINATE MMX DISCUSSION   3/20/2015
From Money Fund Report®: A generally positive outlook for the U.S. economy and the resolution of the years-long uncertainty over the scope of money-market fund reform gave about 200 attendees at iMoneyNet’s 17th annual Money-Market Expo in Orlando last week lots of reasons to be optimistic about the future of the fund industry. Nonetheless, the challenges facing fund providers, who are working through the complications of implementing the new fund regulations, and investors, whose cash-management options are still unclear, made it apparent to many that a new paradigm for the fund industry is very much a work in progress. more
PRIME-FUND MANAGERS INCREASE JAPAN HOLDINGS, DATA SHOWS   3/18/2015
From Money Market Insight™: Investments by U.S. prime-fund portfolio managers in Treasury-issued repurchase agreements rebounded during February following January’s dramatic 75.0 percent drop-off. Preliminary data reviewed by iMoneyNet shows holdings of Treasury repo increased 17.2 percent as of Feb. 28, or by $7.76 billion, based on amortized cost. Meanwhile, investments in government-agency repo declined by $9.93 billion or 17.6 percent. This was a reversal from the additional $6.37 billion in holdings reported for January. more
FIDELITY’S PRIOR ADDRESSES “NEW REALITY”   3/12/2015
Fidelity Investments’ Nancy Prior shared that yield differences are a “relatively small premium to forego the potential for gates and fees in prime money-market funds.” Prior, who serves as president of fixed-income at Fidelity made this observation during her well-received Thursday morning speech at MMX. Her comment followed an explanation of how the money-fund giant addressed the issues emanating from the July Securities and Exchange Commission enactment of money-market fund reform. The process is reflective of “Money-Market Funds: The New Reality,” the title of her speech. more
PRESENTERS, ATTENDEES UPBEAT AT iMONEYNET'S MMX ORLANDO   3/12/2015
Attendees at yesterday’s Investors’ Summit – the opening day of iMoneyNet’s 17th annual Money Market Expo in Orlando – received a generally upbeat assessment of the U.S. and global money markets. In sessions that were both informative and entertaining, presenters and panelists stressed that despite some continuing regulatory and economic challenges, money-market funds appear to be adjusting to a new regulatory regime and will remain a key cash-management strategy for corporate treasurers and retail investors. more
TOUCHSTONE BOWING OUT, DREYFUS STEPS IN   3/5/2015
From Money Fund Report®: Touchstone Advisors is sticking with its decision to “exit the money-market fund business,” but has canceled plans to liquidate and close its funds in favor of “a better alternative” for shareholders that would redirect their investments into several designated Dreyfus money funds. more
U.S. MONEY FUND ASSETS REGISTER $5.9 BILLION DIP   3/4/2015
U.S. money-market fund assets fell $5.85 billion for the week ended March 3, according to Money Fund Report®, a service of iMoneyNet in Westborough, Mass. The exodus reverses the previous week’s $10.73 billion increase. more
CONCERNS RAISED FOR STEP-ONE EUROPEAN MMF PLAN   3/3/2015
Something less than enthusiastic endorsement characterized the early responses to the money-market fund reform agreement reached 26 Feb. by the European Parliament’s Committee on Economic and Monetary Affairs. Full details have yet to be made public. (See known details of the ECON-approved proposal in Feb. 26 item displayed below). more
PANEL REACHES AGREEMENT ON EUROPEAN MMF REFORMS   2/26/2015
The Committee on Economic and Monetary Affairs of the European Parliament has approved a compromise reform proposal for European money-market funds. The proposal, approved at this morning’s committee meeting, creates three new categories of constant-net-asset-value money-market funds and, in a gesture that some may perceive as “industry friendly,” excludes all three categories from so-called capital-buffer provisions that the MMF industry had vigorously lobbied against. more
MMX 2015 EXPLORES THE MMF INDUSTRY’S “BRAVE NEW WORLD”   2/25/2015
The need for money-market fund providers and investors to align their products and investment priorities with a new money-market fund regulatory paradigm – and to do so within a broader economic environment that will likely include rising interest rates and a constrained supply of investment-eligible securities – represents a “brave new world” for attendees to explore at the 17th annual iMoneyNet Money-Market Expo from March 11-13 at Orlando’s Hyatt Regency Hotel. more
EURO MMF ASSET LEVELS REMAIN CONSTANT DESPITE ZERO YIELDS   2/24/2015
From Offshore Money Fund Report™: Euro-denominated fund asset levels have risen overall since late December, a trend which has occurred during the same time frame that the funds’ average 7-day simple yield has hovered at 0.00 percent, with boosts in Prime-fund assets offsetting significant outflows from negative-yielding Government funds. more
PRIME-FUND DATA REVEALS DROP-OFF IN U.S. EXPOSURE, TREASURY REPO   2/13/2015
Investments by U.S. prime-fund portfolio managers in Treasury-issued repurchase agreements plummeted in January, according to preliminary data reviewed by iMoneyNet. Holdings of Treasury repo totaled $44.59 billion as of Jan. 31, a decrease of $133.62 billion or 75.0 percent, based on amortized cost. The decline followed a dramatic increase in December of 272.8 percent. Investments in government-agency repo increased by $6.37 billion during January to $55.67 billion. This reversed a trend of respective declines of 4.0 percent during November and December in that category. more
“BRAVE NEW WORLD” IS MMX 2015 THEME   2/12/2015
An expected rising-rate environment and adjusting to new money-fund rules and other cash-management choices represent a “brave new world” for attendees to ponder at the 17th annual iMoneyNet-sponsored Money-Market Expo to be held March 11-13 at the Hyatt Regency in Orlando, Fla. more
RATED MONEY FUND REPORT AWARD WINNERS REVEALED   2/5/2015
iMoneyNet’s Rated Money Fund Report™ Awards recognize the AAA-rated money funds that reported the highest net total returns for 2014 in each of three categories: Government, Prime, and National Tax-Free. The fund universes were comprised of both institutional and retail money funds that met three criteria: they have been assigned at least one AAA rating; they were open to all investors that met the investment minimum; and their month-end net assets totaled at least $100 million as of December 2014. more
MMF INDUSTRY'S LARGEST FUND TO CONVERT TO GOVERNMENT FUND   2/4/2015
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FIDELITY OUTLINES “PHASE ONE” OF MMF CHANGES SPARKED BY SEC ACTION   1/30/2015
Fidelity Investments announced plans to file documents today with the Securities and Exchange Commission to begin altering its money-fund product lineup as part of a major review stemming from significant input from clients following the agency’s vote last July to remake MMF regulations. more
CHAMP LEAVES IMPRINT ON SEC, MMF REFORM   1/30/2015
After serving in “several senior leadership positions” over the last five years, Norm Champ, director of the Division of Investment Management at the Securities and Exchange Commission, is to leave his post soon, the agency revealed Jan. 21. Champ later told Money Fund Report® the SEC will remain passionate about its mission after he departs. more
WAIVERS NOT FAVORED BY TAXABLE INSTITUTIONAL MMFs   1/30/2015
The use of fee waivers last quarter decreased on a percentage basis among all 1,388 taxable and tax-free funds surveyed by Money Fund Expense Report™. As of Dec. 31, 98.6 percent of funds waived some or all fees, down slightly from 98.8 percent in the third quarter and from 99.1 percent in the final 2013 quarter. more
iMoneyNet SALUTES TOP MANAGERS OF NON-U.S. MMFs FOR 2014   1/29/2015
iMoneyNet congratulates the portfolio managers of the U.S. Dollar, Euro and Sterling Offshore money-market fund portfolios that had the highest gross returns for 2014 and that report to Offshore Money Fund Report™. Our 2014 Top Manager Awards are based on one-year gross total returns for the 12-month period. more
iMoneyNet NAMES TOP U.S. MONEY-FUND PORTFOLIO MANAGERS AND FUNDS FOR 2014   1/29/2015
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NON-U.S. MMF ASSETS RISE, FUND NUMBERS TUMBLE IN 2014   1/26/2015
U.S. dollar-denominated fund assets were up in 2014 compared to 2013 with year-end levels reported at $394.25 billion. The amount reported at the end of 2013 was $386.36 billion. The resulting 12-month increase was about $7.89 billion or 2.0 percent, according to iMoneyNet data shown in Offshore Money Fund Report™. more
U.S. MONEY FUND ASSETS TOP $2.75 TRILLION AT YEAR-END   1/15/2015
Total U.S. MMF assets ended 2014 with their biggest one-year increase in three years, rising 1.8 percent to $2.753 trillion. The overall rise of $47.74 billion as of Dec. 31 reflected a $57.73 billion boost in Taxable fund assets ($2.492 trillion, up 2.4 percent) which offset a $9.99 billion decline in Tax-Free fund assets ($260.21 billion, down 3.7 percent), according to final iMoneyNet monthly data. more
PRIME-FUND INVESTMENTS UP FOR TREASURY REPO, DEBT   1/15/2015
Investments by U.S. prime-fund portfolio managers in Treasury-issued repurchase agreements surged in December, according to preliminary data reviewed by iMoneyNet. Holdings of Treasury repo totaled $178.20 billion as of Dec. 31, an increase of $130.40 billion or 272.8 percent, based on amortized cost. The surge followed a modest November increase of 14.3 percent. In contrast, investments in government-agency repo declined by $2.05 billion or 4.0 percent, the second consecutive month of declines in government-agency repo investments. more
2014: TAXABLE FUNDS LEAD TOTAL ASSET GROWTH   1/7/2015
From Money Fund Report®: Preliminary iMoneyNet monthly data showed that both total money fund assets and taxable fund assets again posted year-over-year gains as of Dec. 31, while tax-free fund assets continued to fall. more
TAX-FREE FUND MANAGERS EXPECT A BOUNCE FROM HIGHER RATES   12/26/2014
From Money Fund Report®: The pending March 20 closures of Touchstone T-F MMF, with reported Dec. 15 assets of $31.8 million, and Touchstone OH T-F MMF at $176.9 million, will add to a thinning of the ranks of tax-free funds which has continued this year. more
EU COUNCIL OFFERS MMF PROGRESS REPORT, COMPROMISE PROPOSAL   12/26/2014
From Offshore Money Fund Report™: In a flurry of activity prior to the end of both the calendar year and the leadership of the Council of the European Union, the Italian presidency offered a report on the progress of its work on money-market fund reform. It also offered a third compromise to the original European Commission money-fund proposal, and expressed the hope that it would be the basis on which the Latvian presidency, which begins in January, would continue the money-fund reform issue. more
ECONOMIC-IMPACT STUDY COULD DELAY EUROPEAN MMF REFORM   12/17/2014
From Offshore Money Fund Report™: A request by some members of the EU Parliament’s Committee on Economic and Monetary Affairs for an economic assessment of the revised money-market fund proposal presented to the committee 2 Dec. could delay an otherwise aggressive legislative schedule, and tip the scale slightly in favor of reform opponents, Ross Little, partner at international law firm William Fry told Offshore Money Fund Report™ last week. more
PRIME-FUND INVESTMENTS IN TREASURY REPO, CDs, AND CP INCREASE   12/12/2014
From Money Market Insight™: Preliminary iMoneyNet data showed that investments by U.S. prime-fund portfolio managers in Treasury-issued repurchase agreements bounced back in October from declines in the previous month. Allocations to Treasury repo totaled $47.80 billion as of Nov. 30, an increase of $6.00 billion or 14.3 percent, based on amortized cost. The November increase followed an October decrease of $94.26 billion or 69.3 percent. Investments in government-agency repo slipped by $4.12 billion or 7.4 percent compared to the prior month’s gain of $3.85 billion, or 7.5 percent. more
EUROPEAN MMF-REFORM DRAFT UNDER REVIEW, FEATURES CAPITAL BUFFER   12/8/2014
From Money Fund Report®: A draft version of a money-fund reform package is wending its way through the European Parliament, as critics complain that a key provision, if adopted, could wipe out most MMFs based on constant net-asset-value structures. more
iMONEYNET ADVISORY BOARD WELCOMES SWIRSKY, BIDS WINTERS GOODBYE   11/20/2014
The November issue of Money Market Insight™ marked the addition of attorney Joan Ohlbaum Swirsky to the iMoneyNet Advisory Board and the departure of industry veteran Jack Winters, who opted to resign from the Board. more
CAPITAL-BUFFER CONCEPT RESURFACES IN EUROPE   11/19/2014
The Italian presidency of the Council of the European Union, which as recently as last week seemed ready to abandon a capital-buffer provision in money-market fund reform legislation pending in the Parliament’s Economic and Monetary Affairs committee, has reportedly decided against doing so. more
FUTURE PRIME FUND USE IN DOUBT, AFP PANEL INDICATES   11/18/2014
From Money Market Insight™: A review of investment policy changes in light of unfolding additional changes to Rule 2a-7 for money funds was a major topic at two sessions conducted at the Association for Financial Professionals Annual Conference this month in Washington, D.C. more
REVIEW QUESTIONS “SKY-IS-FALLING” PREDICTIONS FOR POST-REFORM MMFs   11/18/2014
From Money Market Insight™: The uncertainty that roiled the money markets in the run-up to the July release of the Securities and Exchange Commission’s adopting release on money-market fund reform may be subsiding as fund providers and institutional investors consider how they’ll operate in a post-reform environment, according to services provider Treasury Strategies. Importantly, the utility of money funds, which some reform opponents said would be compromised, may be preserved, and the need for treasurers to revise investment policies may be considerably reduced. more
PRIME-FUND INVESTMENTS IN TREASURY REPO SLUMP   11/14/2014
From Money Market Insight™: Investments by U.S. prime-fund portfolio managers in Treasury-issued repurchase agreements continued their roller-coaster ride in October. Allocations to Treasury repo totaled $41.81 billion as of Oct. 31, a decrease of $94.26 billion or 69.3 percent, based on amortized cost. The October decline followed a nearly identical gain in the August-to-September period. Investments in government-agency repo rebounded from the prior month, gaining $3.85 billion, or 7.5 percent. more
U.S. MMF ASSETS CLIMB $9.7 BILLION   11/12/2014
U.S. money-market fund assets have risen for a fourth consecutive week with inflows of $9.7 billion reported for the week ended Nov. 11, according to Money Fund Report®, a service of iMoneyNet of Westborough, Mass. more
FEDERATED OPTIMISTIC ABOUT POST-REFORM MMF PROSPECTS   10/31/2014
From Money Fund Report®: Reforms finalized by the Securities and Exchange Commission in July are leading fund providers such as Federated Investors Inc. to restructure existing products and to develop new ones that can attract anticipated flows out of prime institutional funds when the new money-fund rules become effective in October 2016. more
MMF CHARGED EXPENSES HIT NEW LOWS   10/31/2014
Charged expenses for Taxable and Tax-Free money-market funds set record lows as use of fee waivers among all 1,414 taxable and tax-free funds surveyed by Money Fund Expense Report™ during the third quarter settled at 98.8 percent for the second straight quarter. That was down slightly from a 99.1 percent level of some fee forgiveness seen in September 2013. more
U.S. MONEY FUND ASSETS RISE AGAIN   10/29/2014
U.S. money-market fund assets rose by $962.6 million for the week ending Oct. 28, according to Money Fund Report®, a service of iMoneyNet of Westborough, Mass. The slight increase nonetheless marked the fifth week in the past six weeks of asset increases in the sector. more
COMMENTERS DEBATE STANDARD OF CREDITWORTHINESS FOR MMF SECURITIES   10/23/2014
From Money Fund Report®: The muted tone and limited scope of comment letters in response to the Securities and Exchange Commission’s reproposal to remove references to credit-rating agencies from Rule 2a-7 and related SEC reporting documents may have confirmed some predictions that the money-market fund industry will accommodate itself to the credit-rating changes proposed by the SEC (See Money Fund Report® #2020, Aug. 29). more
MMF REFORM TO HAVE UNEVEN EFFECT ON CORPORATES, SAYS FITCH   10/2/2014
From Money Fund Report®: A recent Fitch Ratings report maintained that the effects of approved money-fund reforms, including floating NAVs for prime institutional funds, will be far from uniform for U.S. corporations. more
COUNCIL SEEN LEADING EUROPEAN MMF-REFORM COMPROMISE   9/23/2014
From Offshore Money Fund Report™: It is likely that a 25 Sept. meeting of the Council of Ministers will consider scrapping calls for European constant-NAV money-market fund providers to meet proposed capital-buffer requirements as part of a plan to continue offering such products. The group, comprised of finance ministers from 28 EU member states, will instead forge a compromise MMF-reform plan along the lines of a reform package adopted by U.S. regulators, according to some attendees at last week's European Money Fund Forum 2014 held in London, in order to move the debate toward a conclusion. more
FEDERAL BANKING REGULATORS’ MUNI OMISSION MAY BE REVISITED   9/11/2014
From Money Fund Report®: Federal banking regulators kicked the can down the road when they excluded municipal securities from eligibility as highly-qualified liquid assets as part of the newly finalized Liquidity Coverage Ratio rule adopted last week. The Sept. 3 vote by the Federal Reserve Board, the Federal Deposit Insurance Corp. and the Office of Comptroller of the Currency met with strong opposition by some while at least one member of the Fed staff articulated that the impact would not be “significant.” more
CLIENTS SEEM UNCONCERNED ABOUT MMF CHANGES, SAY PORTAL EXECUTIVES   9/4/2014
From Money Fund Report®: “We haven’t seen any out-of-the-ordinary redemptions, nor have we fielded any client concerns” following adoption by the Securities and Exchange Commission of final rule changes for money-market funds, stated Tory Hazard, president and chief operating officer of money-fund portal provider Institutional Cash Distributors LLC. more
U.S. MONEY FUNDS END RUN OF ASSET BOOSTS   9/3/2014
After five straight weeks of reported gains, U.S. money-market fund assets fell $21.21 billion during the week ended Sept. 2, according to Money Fund Report®, a service of iMoneyNet of Westborough, Mass. more
OPPOSITION SEEN UNLIKELY TO REMOVAL OF 2a-7 RATING REFERENCES   8/28/2014
From Money Fund Report®: The Securities and Exchange Commission, as part of the final rule governing money-market funds approved July 23, reproposed amendments to Rule 2a-7 that would remove references to credit-rating agencies in that rule and on Form N-MFP, which funds use to report monthly portfolio holdings information. more
TREASURY STRATEGIES: MMF REFORM “WORKABLE”   8/15/2014
From Money Market Insight™: “This is workable.” That was the opinion expressed by Treasury Strategies’ Tony Carfang about the money-market fund reform measures finalized by a 3-2 SEC vote late last month. more
TREASURERS CHALLENGED BY REVISED MONEY-FUND RULES   8/14/2014
From Money Market Insight™: Response to the Securities and Exchange Commission’s vote for a final rule on money-market mutual-fund reform has been mixed. It may be too soon to know whether the fund industry’s cautious optimism (See Money Fund Report®, Aug. 1) is shared by corporate treasurers who, like other industry participants, are still assessing the rule’s operational implications. more
TREASURY REPO RECEIVES LESS INTEREST FROM PRIME-FUND MANAGERS   8/13/2014
From Money Market Insight™: U.S. prime-fund portfolio managers backed away from sizable investments in Treasury-issued repurchase agreements during July, according to preliminary data reviewed by iMoneyNet. Holdings of Treasury repo had been building for the prior two months and reached $129.19 billion as of June 30, representing a 138 percent increase from May 31 figures, based on amortized cost. more
MAJOR RATING AGENCIES RESPOND TO SEC MMF-REFORM VOTE   8/7/2014
From Rated Money Fund Report™: It wasn’t long before the three predominant rating agencies published their reactions to the Securities and Exchange Commission’s July 23 money-market reform votes. Following is a summary of the viewpoints expressed by each agency with regard to the changes imposed by the SEC action as well as a reference to their status under changes included in section 939A of the Dodd-Frank Act. more
INDUSTRY CAUTIOUSLY OPTIMISTIC AFTER SEC REWRITES MMF RULES   7/30/2014
From Money Fund Report®: Nearly six years after the Reserve Fund infamously “broke the buck” and more than four years after the money-fund industry and regulators implemented a series of fundamental reforms to money-market funds, a divided Securities and Exchange Commission voted 3-2 last week to require prime and tax-free institutional funds to float their net-asset-values and to allow fund boards to impose liquidity fees on early redeemers and to “gate” fund redemptions in times of market stress. more
SEC VOTES NEW RULES FOR MONEY-MARKET FUNDS   7/23/2014
From Money Fund Report®: The Securities and Exchange Commission this morning voted 3-2 to require prime and tax-free institutional money-market funds to transition from a stable to a floating net-asset-value structure over a two-year period. more
NORTHERN TRUST CLOSES CNAV FUND, OFFERS VNAV FUND   7/22/2014
From Offshore Money Fund Report™: The Northern Trust Euro Fund will be closed effective 15 Aug. The decision to close the prime CNAV-based fund follows the launch of the Euro Liquidity Fund, a variable net-asset-value fund. more
TREASURY REPO ON A ROLL WITH PRIME-FUND MANAGERS   7/14/2014
From Money Market Insight™: Treasury-issued repurchase agreements gained increased favor with U.S. prime-fund portfolio managers in June, according to preliminary data reviewed by iMoneyNet. Treasury-repo investments, which jumped 15.2 percent in value to $54.19 billion from April to May, shot up by an additional 138.4 percent from May to June 30 to total $129.19 billion of invested dollars. That was a solid one-month increase of $75.00 billion, based on amortized cost. more
ULTRASHORT BONDS DOMINATE AGAIN   7/9/2014
Taxable U.S. Ultrashort Bond funds accounted for 51.7 percent of all assets reported for the beyond-MMF product space, according to the latest issue of our Enhanced Cash Report™. more
STUDY: NEW MEASURE CONFIRMS EFFECTIVENESS OF 2010 MMF REFORMS   6/13/2014
Excerpted from Money Market Insight™: The efficacy of money-market mutual fund reforms finalized in 2010 has been at the center of the debate over significant additional reforms the Securities and Exchange Commission proposed unanimously almost exactly a year ago. The official public comment period for the SEC reform proposal ended in September, but dozens of comment letters have been posted since then, and other contributions to the MMF-reform debate have been published by proponents and opponents alike. more
PRIME-FUND MANAGERS ADD TO HOLDINGS OF GOVERNMENT-BACKED REPO   6/12/2014
From Money Market Insight™: Treasury-issued and government-agency repurchase agreements showed rekindled interest on the part of U.S. prime-fund portfolio managers in May after slumping in April, according to preliminary data reviewed by iMoneyNet. Government-agency repo climbed 10.4 percent during May to total $60.79 billion, on an amortized-cost basis, as Treasury repos jumped to $54.19 billion; up 15.2 percent in value since April 30. So-called other repos registered one-month declines of 0.5 percent to $82.35 billion. more
WELLS FARGO CALLS ATTENTION TO DOWNSIDE OF DISCLOSURE   6/6/2014
From Money Fund Report®: A May 8 speech by Securities and Exchange Commissioner Kara Stein underscored the importance of transparency in the markets. “We need to work in partnership to improve our disclosure regime; empower shareholders to make smart choices; and improve the fairness and transparency of our increasingly complex markets,” Stein told the Council of Institutional Investors. more
MIXED RESPONSE TO ECB’s MIXED BAG OF INFLATION MEASURES   6/6/2014
The June 5 announcement that the European Central Bank will reduce each of its key interest rates met with mixed response from market participants, who also expressed uncertainty and even some concern about the effect of the rate reductions on European money-market funds. more
FSOC PANELISTS ADDRESS SYSTEMIC-RISK LISTING OF ASSET MANAGERS   5/22/2014
From Money Fund Report®: U.S. regulators “know the crucial role asset managers play” in the global financial system and understand the differences between asset managers and other financial intermediaries, said Mary Miller, undersecretary for Domestic Finance at the U.S. Department of the Treasury, to attendees of a May 19 public conference dealing with the potential systemic-riskiness of asset managers and regulated funds. more
SCHWAB MAKES READY FOR REFORM, CONTINUED SUCCESS AFTER 40 YEARS   5/16/2014
From Money Market Insight™: Charles Schwab & Co. Inc. celebrated its 40th anniversary in 2013. The San Francisco-based firm, with founder Chuck Schwab still at the helm, credits its success to its pioneering spirit. Schwab says he felt in 1971 that there was a better way to do business. History has proved him right as the firm today manages assets of $2.31 trillion and has 300 branches in 45 states, as well as branches in London, Hong Kong and Puerto Rico. more
PRIME-FUND MANAGERS SCOOP UP EUROPEAN PAPER, SHED TREASURY REPOS   5/13/2014
From Money Market Insight™: U.S. Prime-fund portfolio managers in April renewed their interest in European-backed securities but chopped investments of U.S. Treasury repurchase agreements, according to preliminary data reviewed by iMoneyNet. more
RRP VIEWED AS HELPFUL NOW, YET CAUSE FOR FUTURE CONCERN   5/8/2014
From Money Fund Report®: The first mention of a Federal Reserve reverse-repo program surfaced in the July 2013 minutes of a Federal Open Market Committee meeting. Almost a year later now, the program is up and running -- with 139 RRP counterparties able to bid up to $10 billion each day and receive a current overnight rate of 0.05 percent. more
SCALED-BACK FTT FOCUSES ON EQUITIES, DERIVATIVES   5/6/2014
From Offshore Money Fund Report™: Progress toward introduction of a financial-transactions tax in Europe, which stalled last fall amid disagreements among the 11 EU nations that had originally passed it in 2012 under the EU charter’s enhanced-cooperation provision, may have regained momentum with the announcement this morning in Brussels that proponents will advance a revised plan, which they hope will mute a tsunami of criticism from Europe’s investment community. more
COMMENT LETTERS KEEP DATA AT CENTER OF MMF-REFORM DEBATE   5/1/2014
From Money Fund Report®: Comment letters submitted to the Securities and Exchange Commission in response to analyses by its Division of Economic and Risk Analysis of four specific issues related to the Commission’s June 2013 money-fund reform proposal varied in focus and emphasis. Nonetheless, all faulted either the quality and relevance of the data that informed the analyses, or took issue with inferences the Commission drew from the data. more
SSgA, DREYFUS LEAD MARKET-SHARE GAINS   4/16/2014
SSgA, with a 54.9 percent asset boost, recorded the biggest one-year gain in market share among the 10 largest money-fund complexes, iMoneyNet data showed. SSgA ranked ninth overall with $115.56 billion of reported assets. The 12-month asset gain of $40.96 billion propelled its market share from 2.9 percent one year ago to 4.4 percent as of March 31. more
FSB-IOSCO CONSULTATION MEETS STRONG OPPOSITION   4/15/2014
From Offshore Money Fund Report™: Organizations representing regulated U.S. asset-management companies are contesting the criteria proposed in a consultation issued by the Financial Stability Board and the International Organization of Securities Commissions for assessing the potential risks to the global financial system posed by nonbank, noninsurer financial companies. more
ENHANCED CASH FUND ASSETS UP $32 BILLION IN 2013   4/14/2014
Enhanced Cash funds tracked by iMoneyNet pushed total assets up by 5.5 percent or $32.2 billion during 2013, as U.S. Ultrashort Bond funds again led the way with sizable asset gains. more
PRIME FUNDS THROTTLE BACK ON EUROPEAN-ISSUED PAPER   4/11/2014
From Money Market Insight™: U.S. Prime-fund portfolio managers turned away from securities issued by European entities in March, according to preliminary data reviewed by iMoneyNet. more
MONEY FUND REPORT® REACHES ISSUE #2000   4/10/2014
Money Fund Report® has produced a milestone issue. more
SEC ANALYSES LEAVE DIRECTION OF MMF REFORM UNCERTAIN   4/3/2014
From Money Fund Report®: Some industry participants say that analyses of four issues relevant to the consideration of money-market mutual fund reforms by the Securities and Exchange Commission provide clues to the scope of the Commission’s final rule, which is expected as soon as this quarter. more
MMX 2014 ATTENDEES HEAR IT’S TIME TO “GET IT RIGHT”   3/19/2014
From Money Fund Report®: Fidelity’s Nancy Prior said it best: “We have come this far; it’s important we get it right.” The recently appointed president of Fidelity’s Fixed Income division and vice chairman of Pyramis Global Advisors delivered her remarks as a keynote speaker at iMoneyNet’s Money-Market Expo, held last week in Orlando, Fla. more
PRIME-FUND MANAGERS FAVOR TREASURY DEBT OFFERINGS   3/14/2014
From Money Market Insight™: U.S. Prime-fund portfolio managers favored U.S. Treasury debt offerings over government and agency debt securities in February, according to preliminary data reviewed by iMoneyNet. more
MMF REFORM DELAYED BY EUROPEAN PARLIAMENT   3/14/2014
From Money Market Insight™: The postponement of a vote by the ECON committee of the European Parliament makes it unlikely that the contentious issue of money-fund reform will be addressed again until the fall, at the earliest, after parliamentary elections are held and following the traditional summer break. more
FIDELITY’S PRIOR: SEC “MISSED THE MARK” ON MMF REFORM, REFINEMENTS NEEDED   3/11/2014
Recommendations offered by the Securities and Exchange Commission last June for reforming money-market funds provided a good framework for making funds more resilient and preserving their core benefits, Nancy Prior, newly-appointed president of Fidelity Investments’ Fixed Income division and vice chairman of Pyramis Global Advisors, told attendees this morning at iMoneyNet’s MMX money-market fund conference in Orlando. more
N.Y. FED THREATENS INTERVENTION IN TRI-PARTY REPO MARKET   2/28/2014
Excerpted from Money Fund Report®: The Federal Reserve Bank of New York meted out a failing grade, and along with it a threat of regulatory intervention, toward fixing a problem which it stated “remains a critical policy concern of the Federal Reserve and other members of the regulatory community,” namely the continued “risk of destabilizing fire sales of repo collateral by tri-party repo investors in the event of a default of a large tri-party repo borrower.” more
GERMANY, FRANCE ADVANCE SCALED-BACK FTT; MMFs ENDANGERED   2/28/2014
Excerpted from Offshore Money Fund Report™: German and French leaders recently attempted to rejuvenate plans for a European financial-transactions tax by agreeing to limit the scope of the levy, despite predictions that a scaled-back tax would be no less harmful for ordinary shareholders, or for money-market funds. more
EUROPEAN PARLIAMENT PANEL POSTPONES KEY MMF-REFORM VOTE   2/18/2014
From Offshore Money Fund Report™: A vote scheduled 17 Feb. on money-market fund reform in the European Parliament’s Committee on Economic and Monetary Affairs was postponed after contentious debate revealed a deep divide among committee members about the nature and scope of reforms intended to lessen the likelihood of runs in future financial crises. The postponement casts doubt on the prospect of reaching consensus within the ECON committee and complicates a parliamentary schedule that calls for a plenary vote 14 April, just before the conclusion of the current parliamentary session. more
EUROPEAN HOLDINGS BACK IN VOGUE FOR PRIME-FUND MANAGERS   2/14/2014
From Money Market Insight™: U.S. Prime-fund portfolio managers eased up on U.S.-based securities holdings in January and returned to European-originated securities in a big way, according to preliminary data reviewed by iMoneyNet. more
MMX SPEAKERS READY TO PRESENT AMID REGULATORY UNCERTAINTY   2/13/2014
Leaders of the money-fund industry are preparing to gather next month in Florida with corporate treasurers and cash managers, a former commissioner who voted with the Securities and Exchange Commission to put draft MMF rule changes out for public comment, legal experts, securities issuers, fund portal executives, a U.S. Treasury official, rating agency representatives, and others, for the 16th annual Money-Market Expo, staged by iMoneyNet. more
2013: FRANCE, NETHERLANDS BIG GAINERS FOR U.S. PRIME-FUND INVESTMENTS   2/7/2014
From Money Fund Report®: iMoneyNet analysis of U.S. prime money-market fund portfolio holdings at year-end showed that fund managers boosted the amortized-cost values of holdings tied to entities based in France and the Netherlands the most, on a percentage basis, among Top 10 countries of risk. more
UPDATED: A EUROPEAN MMF CREDIT-RATINGS FIX?   2/7/2014
Money-market fund reform in Europe appears headed toward resolution. The Committee on Economic and Monetary Affairs is now scheduled to vote Feb. 17 on more than 400 amendments to money-fund reform legislation pending in the European Parliament. more
MONEY-FUND REFORM UPDATE   1/30/2014
Two members of the Securities and Exchange Commission addressed money-market fund reform issues in separate speeches delivered Jan. 27 on opposite sides of the country. more
2013: NON-U.S. FUNDS EXPERIENCE ACROSS-THE-BOARD ASSET DECLINES   1/28/2014
From Offshore Money Fund Report™: Against a background of real but tentative and uneven recovery in European and EU economies, offshore money-market mutual funds experienced one-year declines in total assets, funds, and portfolios in all three currencies tracked as of 31 Dec., iMoneyNet data showed. more
iMoneyNet NAMES TOP U.S. FUND MANAGERS FOR 2013   1/23/2014
iMoneyNet congratulates the portfolio managers of the Government, Prime, and Tax-Free and Municipal money-market portfolios that report to Money Fund Report® for attaining the highest 2013 gross returns. Our 2013 Top Manager Awards are based on gross total returns of Master-Class funds in the 2013 calendar year. more
iMoneyNet SALUTES TOP MANAGERS OF NON-U.S. FUNDS   1/23/2014
iMoneyNet congratulates the portfolio managers of the U.S. Dollar, Euro and Sterling Offshore money-market fund portfolios that had the highest gross returns for 2013 and that report to Offshore Money Fund Report™. Our 2013 Top Manager Awards are based on one-year gross total returns for the calendar year. more
U.S. MMF ASSETS FINISH 2013 ABOVE $2.7 TRILLION   1/15/2014
From Money Fund Report®: Total U.S. money-market fund assets rose modestly during 2013, ending the year at $2.705 trillion, for one-year growth of $30.77 billion or 1.2 percent, according to final iMoneyNet monthly data. Taxable fund assets climbed $47.13 billion or 2.0 percent to $2.435 trillion as of Dec. 31, the highest month-end total achieved during last year. The low point of $2.299 trillion was recorded April 30. Tax-free fund assets concluded the year at $270.20 billion, a $16.36 billion or 5.7 percent decline compared to year-end 2012 levels. Tax-free fund assets dropped as low as $256.48 billion last May. more
PRIME FUND MANAGERS COOL ON EUROPE, SCOOP UP TREASURY REPOS   1/15/2014
From Money Market Insight™: U.S. Prime funds in December slashed the value of their investments in entities based in France, the United Kingdom and Germany but added to holdings of securities issued by U.S. and Canadian institutions. more
ANNOUNCING THE 2013 MONEY FUND REPORT® AWARD WINNERS   1/15/2014
iMoneyNet’s Money Fund Report® Awards recognize the U.S. money funds that reported the highest net one-year returns for 2013 in six categories: Government Institutional, Prime Institutional, National Tax-Free Institutional, Government Retail, Prime Retail, and National Tax-Free Retail. Performance is based on each fund’s 2013 net total return. To qualify for these awards, a fund must meet two criteria: it must have month-end assets of at least $100 million as of December 2013 and it must be open to all investors who are able to meet the investment minimum. more
2013: TOTAL, TAXABLE U.S. MMF ASSETS RISE   1/8/2014
From Money Fund Report®: Preliminary iMoneyNet monthly data showed that both total money fund assets and taxable fund assets posted year-over-year gains as of Dec. 31, while tax-free fund assets declined. more
AMENDMENTS TARGET KEY PROVISIONS OF EUROPEAN MMF LEGISLATION   1/6/2014
From Offshore Money Fund Report™: Some of the more than 400 amendments to proposed money-market fund reform legislation pending in the European Parliament’s Committee on Economic and Monetary Affairs would overturn key provisions of the legislation, including required capital buffers on constant-NAV funds, prohibitions against external ratings and sponsor support, and restrictions on valuing securities held in funds. more
EACT HOPEFUL ABOUT AMENDING EUROPEAN MMF LEGISLATION   12/16/2013
The European Association of Corporate Treasurers will participate with other fund associations and corporate investors in a campaign to inform voting members of the European Parliament of the consequences to the real economy if provisions of current money-fund reform legislation are enacted, EACT chairman Richard Raeburn told editors of Money Market Insight™. more
(Updated) PRIME FUND MANAGERS LOOK FAVORABLY ON GERMANY   12/12/2013
From Money Market Insight™: U.S. Prime funds in November lowered the value of their investments in entities based in France and the United Kingdom while beefing up holdings of securities issued by institutions located elsewhere in Europe, particularly in Germany. more
DUELING REGULATORS: TURF WAR, OR SOMETHING MORE?   11/20/2013
From Money Market Insight™: Complications of specific elements of the Securities and Exchange Commission’s June proposal for reforming money-market mutual funds have been addressed in sometimes excruciating detail in many comment letters. However, some observers of the effort to reduce systemic risk in the financial system since the 2008 crisis say that much more is at stake than just the technical details of SEC draft concepts. more
U.S. PRIME FUND EXPOSURES UP SHARPLY TO FRANCE, THE U.K. AND GERMANY   11/19/2013
Tabulations for the Top 10 countries of risk for U.S. Prime MMFs during October showed one-month double-digit percentage increases in exposures to entities based in France, the United Kingdom and Germany, according to preliminary data reviewed by iMoneyNet. more
CAPITAL REQUIREMENT WOULD END CNAV FUNDS, IMMFA AGAIN ARGUES   11/7/2013
From Offshore Money Fund Report™: “A capital buffer will eliminate constant-net-asset-value money-market funds.” That is one of the more strident statements repeated by the Institutional Money Market Funds Association in its 1 Nov. response to the European Commission’s Proposed Regulation on Money-Market Fund Reforms, issued two months ago. more
TREASURY MOVES AHEAD WITH FRN AUCTIONS   11/6/2013
The U.S. Treasury’s Nov. 6 quarterly refunding statement set Jan. 29 as the date for the first auction of floating-rate notes, “the first new product that Treasury has brought to market in 17 years.” Auction details are expected to be announced Jan. 23. The settlement date will be Jan. 31. more
RECORD-LOW CHARGED EXPENSES SEEN IN LATEST QUARTER   10/31/2013
From Money Fund Report®: Average charged expenses levied on money-fund investors plunged to record-low depths during the quarter ended Sept. 30, according to iMoneyNet data. more
MONEY-MARKET FUNDS SHINE DURING DEBT-LIMIT CRISIS   10/25/2013
From Money Fund Report®: The business media is awash in retrospectives on last week’s debt-ceiling crisis and last-minute resolution plus the end of the two-week old partial government shutdown. Among the losers: Congress generally; the Republican Party; the White House; federal workers; and visitors to national parks, among many others. The reputation of U.S. Treasurys for being liquid and virtually risk-free securities may also have been sullied. more
“MONEY FUNDS 101” FOR PIWOWAR, STEIN   10/24/2013
From Money Fund Report(R): The two commissioners who were not yet serving when the Securities and Exchange Commission unanimously voted June 5 to take public comment on a package of money-fund rule changes have been busy educating themselves about the pros and cons of what has been proposed. more
MMFs LOG ONE-DAY ASSET BOOST OF $8.4 BILLION, UP $39 BILLION SINCE OCT. 16   10/22/2013
Investors have now added $38.75 billion since last Wednesday’s resolution of the nation’s temporary fiscal problems, replenishing U.S. money-market fund assets overall to $2.626 trillion, according to iMoneyNet daily data. Funds added $8.38 billion yesterday. more
ENHANCED-CASH FUND ASSETS DOWN IN SECOND QUARTER   10/17/2013
Enhanced Cash Report™ data for the three-month period that ended in June captured $601.3 billion of combined U.S. and Offshore portfolio assets, when converted to dollars, compared to $605.9 billion in the first quarter. That translated to a quarterly total asset downturn of $4.6 billion or about -0.8 percent. more
UPDATED: GOVERNMENT FUND ASSETS DOWN, HILL ACTION AWAITED   10/15/2013
iMoneyNet daily data for Oct. 11 showed that assets of 318 Government Institutional funds fell by an additional $10.84 billion to $677.71 billion, as news headlines outlined potential consequences of Congressional inaction so far on raising the nation’s debt limit, which many have indicated could cause the Treasury Department to delay paying off maturing securities. more
PRIME FUNDS TRIM TREASURY-DEBT HOLDINGS, ADD REPOS   10/11/2013
U.S. Prime MMFs, in the weeks leading up to the end of the U.S. federal fiscal year and the resulting partial government shutdown and threats of delayed debt payments during a debt-limit stalemate, reduced holdings of Treasury and government agency debt in September, while boosting investments in Treasury and government agency repurchase agreements, according to preliminary data reviewed by iMoneyNet. more
FUNDS DEAL WITH DEBT-LIMIT TALK   10/9/2013
From Money Fund Report(R): By holding more cash and avoiding Treasury securities that mature between late October and mid-November, money-market funds more
CMFI OFFERS SOLUTION TO MMF OMNIBUS-ACCOUNT CHALLENGE   9/27/2013
Condensed from Money Fund Report®: Many of the nearly 1,450 letters commenting on the money-market fund reform proposal released in June by the Securities and Exchange Commission, and virtually all of the substantial letters, have addressed the complications of distinguishing between retail and institutional funds. more
FORUM SPEAKERS AIR CONCERNS ABOUT MMF REFORMS   9/17/2013
From Offshore Money Fund Report™: "Hopefully this is just the start of the process, not the end." We need to keep MMFs "usable for investors." Those were just some of the sentiments expressed during European Money Fund Forum 2013 held 10-11 Sept. in London only days after the EC unveiled its money-market fund reform plan. more
U.S. PRIME FUNDS STEP UP HOLDINGS TIED TO FRANCE, U.K.   9/13/2013
From Money Market Insight(tm): U.S. Prime MMFs made slight reductions and additions to holdings of securities issued by U.S. and Canadian-based entities, respectively, while increasing exposure to securities emanating from Japan, France and the United Kingdom in August, according to preliminary data reviewed by iMoneyNet. The addition of August figures means that two full years of U.S. MMF portfolio holdings information is now stored in our database. more
EUROPEAN FUND INDUSTRY GIRDS FOR EC MMF PROPOSALS   8/29/2013
Excerpted from Money Fund Report®: The European money-market fund industry awaits the planned Sept. 4 release of the European Commission’s “communications” on shadow banking and money-market fund reform with cautious optimism. Drafts of the EC proposal dealing with MMFs leaked this spring included a 3 percent capital buffer, stricter limits on daily and weekly liquidity, redemption holdbacks, and new provisions for stress testing (see Offshore Money Fund Report™, April 3). more
CALCULATORS OFFERED TO “DRIVE DISCUSSION” WITH THE SEC   8/14/2013
From Money Market Insight(tm): Treasury Strategies is offering a series of free “VNAV Cost-Implementation Calculators” on its Web site (http://treasurystrategies.com/CorpCalculator) that “guides investors through policy, process, accounting and technology changes which will be required to comply with the Securities and Exchange Commission’s variable net-asset-value proposal for prime institutional money-market funds,” stated the corporate treasury advocacy organization in its Aug. 8 announcement. more
UPDATED - SOME EUROPEAN INVESTMENTS FAVORED BY U.S. PRIME FUNDS   8/13/2013
U.S. Prime MMFs reduced holdings of securities issued by U.S. and Canadian-based entities and made minimal additions to investments tied to Japan in July. The funds also reversed course from June’s retreat and added to holdings of securities issued by institutions based in France, the United Kingdom, Sweden, Germany and the Netherlands, according to preliminary data reviewed by iMoneyNet. more
TREASURY STRATEGIES CITES COSTS, COMPLEXITY OF FNAV MONEY FUNDS   8/2/2013
From Money Fund Report®: A research paper released July 25 by treasury-management firm Treasury Strategies indicated how little time it has taken for the money-fund industry to begin assessing the effect of the reform recommendations issued June 5 by the Securities and Exchange Commission. more
UNCERTAINTY ENVELOPS TAX-EXEMPT FUNDS IN SEC MONEY-FUND PROPOSAL   7/26/2013
From Money Fund Report®: The focus of the industry’s attention since the June 5 Securities and Exchange Commission vote to seek comments on its money-market fund reform proposal has been on uncertainties faced by prime institutional funds; specifically the effect on such funds of a proposed transition to a floating net asset value and of redemption fees and gates. more
U.K. TREASURY OFFICIAL CALLS MMFs “VITAL”   7/16/2013
From Money Market Insight™: Sajid Javid MP, Economic Secretary to the U.K. Treasury, heartened guests at last month’s annual dinner of the Institutional Money Market Funds Association by characterizing the role played by MMFs as “vital,” and by encouraging fund sponsors and investors to help assure that efforts to reform them “address legitimate concerns without impairing the crucial role money funds can play in our economy.” more
IRS EXEMPTION LEAVES “ENORMOUS” UNRESOLVED ISSUES, CHAMBER SAYS   7/15/2013
From Money Market Insight™: It appears that the July 3 release of a proposal by the Internal Revenue Service to mitigate tax and accounting complications arising from a Securities and Exchange Commission proposal to float the net asset values of certain money-market funds may not be enough to make FNAV funds palatable to corporate treasurers. more
(Revised) U.S. PRIME FUNDS SHY AWAY FROM EUROPEAN INVESTMENTS   7/11/2013
U.S. Prime MMFs added to holdings of securities issued by U.S., Canadian and Japan-based entities in June, but trimmed holdings of securities issued by institutions based in France, Australia, the United Kingdom and other European countries, according to preliminary data reviewed by iMoneyNet. more
MMF REFORMS INCLUDE NEW PROVISIONS FOR FORM PF   7/5/2013
From Enhanced Cash Report™: Citing both the possibility that its proposed reforms of money-market funds will drive investors to more risky, opaque, and unregistered alternative products, and regulators’ need to monitor asset flows into such products, the Securities and Exchange Commission expects to require large liquidity-fund advisers to provide additional details when filing Form PF. more
(Updated) PRIME FUNDS ADD CD, CP EXPOSURES; CUT MOST REPO HOLDINGS   6/13/2013
U.S. Prime MMFs in May boosted holdings of certificates of deposit and variable-rate demand notes but reduced holdings of most repurchase agreements, according to preliminary results tabulated by iMoneyNet. more
EUROPEAN-BACKED ISSUES GAIN PRIME FUND INVESTMENTS   5/29/2013
From Money Fund Report: Prime U.S. money-market funds, on an amortized-cost basis, have boosted holdings of securities issued by institutions located in France, the United Kingdom, Germany and Switzerland on a year-to-date and monthly basis as of April 30, iMoneyNet data revealed. more
TWO SENATE STAFFERS TAPPED FOR SEC AS PANEL WEIGHS MMF CHANGES   5/28/2013
President Obama last week nominated Kara Stein, an aide to Sen. Jack Reed (D-R.I.), to replace Securities and Exchange Commissioner Elisse Walter, and Michael Piwowar, currently an economist for the Senate Banking Committee, to replace Commissioner Troy Paredes. Stein is a Democrat and Piwowar is a Republican. more
CDs REMAIN NO. 1 PRIME-FUND INVESTMENT CHOICE, VRDNs GAIN IN APRIL   5/13/2013
Preliminary iMoneyNet portfolio holdings data shows that Prime money-market mutual funds reduced exposures during April to certificates of deposit, Treasury debt and asset-backed commercial paper, while pushing up purchases of financial-company and other commercial paper and of variable-rate demand notes. more
FEW FLUCTUATIONS SHOWN FOR MARKET-VALUE OR “SHADOW” NAVs   5/9/2013
Daily market-value NAVs reported for the 25 largest master-class shares of taxable money funds were rock steady for the five-week period ended May 3, iMoneyNet data revealed. Only six funds registered any price changes during that period and none moved up or down by more than $0.0001. The MV NAV for Federated Prime Oblig Fund/Instit ranged from $1.0004 to $1.0005 during that time frame; Fidelity Instit Prime MMF/Instit moved up from $1.0003 to $1.0004; Dreyfus Cash Mgmt/Inst, Schwab US Treasury MF, Invesco Liquid Assets Port/Inst, and Schwab Advisor Cash Resvs/PremSwp shifted between $1.0001 and $1.0002. more
SEC CHAIRMAN WHITE: “ACTIVE DISCUSSIONS” ON MMF-REFORM PROPOSAL   5/3/2013
In remarks delivered this morning at the 2013 ICI GMM forum in Washington, D.C., SEC chairman Mary Jo White emphasized “the global nature” of financial regulation and the important role the SEC and other U.S. regulators play in international financial markets. more
TREASURY FRN PROGRAM ADVANCES   5/1/2013
The U.S. Department of the Treasury revealed May 1 that it will use the weekly High Rate of 13-week Treasury bill auctions for indexing its first auction of Treasury floating-rate notes to occur in either the fourth quarter or first quarter of 2014. A final rule on floating-rate notes is expected in “coming months.” Treasury announced plans last August to develop an FRN program “to complement our existing suite of securities and to help achieve our objective of financing the government at the lowest cost over time.” The index question was resolved following a comment period, though officials said Treasury remains open to studying use of other benchmarks later. more
NEW HEIGHTS REACHED BY ULTRASHORT BOND FUNDS   4/29/2013
From Enhanced Cash Report™: U.S. Ultrashort Bond funds accounted for year-end assets of $280.1 billion, a record-high total for that category since iMoneyNet began tracking the enhanced-cash universe in the first quarter of 2005. more
U.K. FIRST TO CHALLENGE LEGALITY OF EU TAX   4/23/2013
From Offshore Money Fund Report: When the Securities Industry and Financial Markets Association objected to the proposed EU financial-transaction tax, it suggested that its extraterritorial provisions could be challenged in sovereign or international courts. On April 19, the U.K. became the first EU member to follow through on such a challenge, and a new report from the Investment Company Institute may indicate it won’t be the last. more
ICMA SAYS FTT AIMS TO “DISMANTLE THE MARKET”   4/10/2013
Excerpted from Offshore Money Fund Report™: While the International Capital Market Association earlier sounded the alarm about the imposition of a financial-transaction tax on repurchase agreements, its 8 April paper cut a much wider swath, claiming that the European Union is intentionally seeking to suppress the practice of financial intermediation and foster “an alternative financial system which largely dispenses with primary dealers, market-makers, broker-dealers and other principal intermediaries.” more
PRIME MMFs SHUN FRANCE, GERMANY AND THE U.K.   4/9/2013
Preliminary iMoneyNet portfolio holdings data shows that Prime money-market mutual funds reduced exposure to securities issued by institutions domiciled in France, Germany and the United Kingdom between February and March. Prime MMFs overall, on an amortized-cost basis, reduced exposures to securities of U.S. issuers by $2.87 billion to $493.86 billion from Feb. 28 to March 31. Canadian issuers attracted $204.15 billion to rank second-most, a one-month rise of $11.70 billion or 6.1 percent. more
AGREEMENT VOICED AT MMX FOR LIMITED CHANGES TO MMFs – IF ANY   3/25/2013
In the wake of comments by Commissioner Troy Paredes of the Securities and Exchange Commission, several speakers on the program at the recent iMoneyNet Money-Market Expo held in Orlando, Fla., said they were reassured that major changes considered to be “draconian” would not be proposed by that agency, which has recently reasserted its role as the industry’s primary regulator. more
SEC’s PAREDES AT MMX: “WHAT ARE WE SOLVING FOR?”   3/21/2013
From Money Fund Report®: Although they may have arrived at iMoneyNet’s Money-Market Expo in Orlando, Fla., with the “Groundhog-Day” feeling that too little had changed since last year’s event, attendees seemed uplifted by comments from Commissioner Troy Paredes of the Securities and Exchange Commission. more
AT MMX FIDELITY’S PRIOR HINTS AT COMPROMISE WITH REGULATORS   3/12/2013
iMoneyNet’s Money Market Expo served as the backdrop for Fidelity Investments’ Nancy Prior to tell regulators in Washington, D.C. her company’s view of how to approach MMF reform. more
VNAV CONVERSION DRAWS MIXED RESPONSE IN EUROPE   3/7/2013
From Rated Money Fund Report™: The prospect of regulatory changes being imposed on European money-market funds was the subject of a recent Fitch Ratings survey of European corporate treasurers. Conducted in association with Treasury Management International, it found that “treasurers do not appear to hold strong views with regard to constant net-asset-value compared with variable net-asset-value funds, since they recognize their respective merits and flaws.” more
SUPPORT SHOWN FOR TREASURY FRNs, INDEX CHOICE AT ISSUE   2/21/2013
Excerpted from Money Fund Report®: The U.S. Department of the Treasury is proceeding with plans to launch a floating-rate note auction program, possibly as soon as the November refunding, pending development of auction regulations and modification of its computer systems. more
ESRB MMF RECOMMENDATIONS ADDRESS “SYSTEMIC RISK”   2/19/2013
From Offshore Money Fund Report™: Any notion that money-market funds are not part of the shadow-banking system was put aside in a slate of recommendations to the European Commission published by the European Systemic Risk Board that called for a “mandatory move to variable net-asset-value” and the use of “fair valuation,” while restricting the use of amortised-cost-accounting to a limited number of predefined circumstances. more
FSOC COMMENT LETTERS CHALLENGE NEED FOR STRUCTURAL MMF REFORMS   2/15/2013
When it responded quickly to an appeal by Securities and Exchange Commission Chairman Mary Schapiro last August to drive the process of reforming money-market funds, the Financial Stability Oversight Council was roundly criticized by the fund industry for intruding on the SEC’s authority as the funds’ prime regulator. more
iMoneyNet SALUTES TOP MANAGERS OF NON-U.S. FUNDS   1/31/2013
iMoneyNet congratulates the portfolio managers of the U.S. Dollar, Euro and Sterling Offshore money-market portfolios that had the highest gross returns for 2012 and that report to Offshore Money Fund Report™. Our 2012 Top Manager Awards are based on one-year gross total returns for the calendar year. more
EUROPEAN CORPORATE TREASURERS SHOW LITTLE INTEREST IN FNAV-MMFs   1/29/2013
From Offshore Money Fund Report™: A conversion from constant net-asset-value money funds to a variable net-asset-value money-fund structure in Europe “would generate a negative reaction among investors.” That was the finding of a Treasury Strategies 24 Jan. survey. more
U.S MMF INVESTMENTS: FRENCH, CANADIAN, JAPANESE ISSUERS POST BIGGEST JUMPS   1/28/2013
Excerpted from Money Fund Report®: Full-year portfolio holdings data for 2012 analyzed by iMoneyNet revealed that fund managers of U.S. prime money-market funds increased exposures to securities backed by French institutions the most on a percentage basis and reduced holdings of securities issued by institutions based in the United Kingdom the most among countries holding at least $5 billion of U.S. prime-fund investments during the 12 months ended on Dec. 31. more
iMoneyNet NAMES TOP U.S FUND MANAGERS FOR 2012   1/21/2013
iMoneyNet congratulates the portfolio managers of the Government, Prime, and Tax-Free and Municipal money-market portfolios that report to Money Fund Report® for attaining the highest 2012 gross returns. Our 2012 Top Manager Awards are based on gross total return of Master-Class funds in the 2012 calendar year. more
ANNOUNCING THE 2012 MONEY FUND REPORT AWARD WINNERS   1/15/2013
iMoneyNet’s Money Fund Report® Awards recognize the money funds that reported the highest net one-year returns for 2012 in six categories: Government Institutional, Prime Institutional, National Tax-Free Institutional, Government Retail, Prime Retail, and National Tax-Free Retail. Performance is based on each fund’s 2012 net total return. To qualify for these awards, a fund must meet two criteria: it must have month-end assets of at least $100 million as of December 2012 and it must be open to all investors who are able to meet the investment minimum. more
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