On Monday, the Charles Schwab Family of Funds filed to remove the ability to "recapture" waived fees, we learned from mutual fund news source ignites.com. The Schwab Prospectus Supplement, which was filed on behalf of all 20 Schwab money market funds, says, "On November 8, 2015, the Boards of Trustees of the Trusts approved an agreement to terminate the ability of the investment adviser and/or its affiliates to recapture from the Funds, or otherwise seek reimbursement payments from the Funds for, any fees waived under the voluntary yield waiver. The investment adviser and/or its affiliates will continue to voluntarily waive fees for the Funds under the voluntary yield waiver to the extent necessary to maintain a positive net yield or non-negative net yield for the Funds, as applicable, but will no longer have the ability to recapture, or otherwise seek reimbursement payments from the Funds, for those fees or any fees previously waived under the voluntary yield waiver. Accordingly, effective as of November 9, 2015, all references to the ability to recapture or seek reimbursement payments by the investment adviser and/or its affiliates under the voluntary yield waiver are hereby removed." ignites piece, "Schwab Rules Out Money Fund Clawbacks, explains, "Charles Schwab is joining Vanguard in promising investors that it will not try to recoup the cost of money market fund waivers through clawbacks.... Previously, Schwab's fund literature had allowed it to recoup waivers, and firm officials had said in the past that clawbacks were a possibility." The article continues, "Vanguard, the fifth-biggest money fund provider, with $177 billion, has similarly sworn off waiver clawbacks, stipulating in its annual report released last month that the funds are not obligated to repay the fees back to Vanguard. (See our Oct. 21 News, "ICI, JPM on Sept. Portfolio Holdings; No Fee Recapture for Vanguard." See too our Nov. 10 News, "Schwab Files Variable NAV Money Fund; Invesco Announces Changes.") In other news, ICI's latest "Money Market Fund Assets" report shows money market mutual fund assets increasing for the 7th time in the last 8 weeks. ICI says, "Total money market fund assets increased by $12.11 billion to $2.71 trillion for the week ended Wednesday, November 11, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $6.73 billion and prime funds increased by $6.12 billion. Tax-exempt money market funds decreased by $740 million." ICI notes that it changed its designation for government funds from "Treasury" to "Government" funds. `Year-to-date, money market fund assets are down $19 billion, or 0.7%.
