Fidelity on Flows, MNAV and LA Data
Fidelity posted an update in its Leadership Series called "Institutional and Muni Money Market Funds Begin Publishing Flow and NAV Data." Authors Michael Morin, Director of Institutional Portfolio Management and Kerry Pope, Institutional PM, write, "Money market fund flows continued to suggest an investor preference for government MMFs in light of the rapidly approaching 2a-7 reforms. From February 29 to March 31, assets in these funds rose from $1,245 billion to $1,268 billion, a $23 billion increase. We continue to believe government MMF assets are likely to continue their trend higher as, given the enhanced bank regulations, large banks cost-justify their deposits. Fidelity's prime MMFs continued to be well positioned for potentially increased flow volatility associated with regulation reform. MMFs have had plenty of supply in the short end of the yield curve thanks to increases in repurchase agreements and agencies." They add, "As we outlined in our March 2016 Money Market Commentary "Money Markets: Data-Dependent Fed Holds Rates Steady," beginning in April 2016, institutional prime and institutional municipal MMFs are required to publish market-value NAVs. In accordance with this requirement, Fidelity began providing data for the following categories: Daily and Weekly Liquidity (weekly only for municipal MMFs); Daily Net Shareholder Flows; Fees & Distribution (Pricing); and Daily Market Value (NAV)."
