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We'​re happy to annouce our third annual Crane'​s Money Fund University, which will be held January 24-​25, 2013, at The Roosevelt Hotel in New York City. The preliminary agenda for our "​basic training" event is now online (​and available in PDF) and the MFU website (​www.​moneyfunduniversity.​com) is live and taking registrations. Money Fund University will offer attendees an affordable and comprehensive day-​and-​a-​half, "​basic training" course on money market mutual funds. We cover the history of money funds, interest rates, Rule 2a-​7, ratings, rankings, money market instruments such as commercial paper and repo, and portfolio construction and credit analysis. New portfolio managers, analysts, investors, issuers, service providers, and anyone interested in expanding their knowledge of "​cash" investing will benefit from our comprehensive program. Even experienced professionals can enjoy a refresher course and the opportunity to interact with peers in an informal setting. Last year'​s University in Boston attracted over 110 speakers, sponsors and attendees, and we expect an even a stronger showing in 2013. Attendee registration for Crane'​s Money Fund University is (​again) $​500. Exhibit space is $​2,​000 and sponsorship opportunities are $​3K, $​4.​5K, and $​5K, respectively. Note that our next big show, Crane'​s Money Fund Symposium, is scheduled for June 19-​21, 2013 in Baltimore. Watch for details and the preliminary agenda to be posted this fall, and feel free to contact us for more information on either show.

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The Wall Street Journal writes "​Firms Close European Money-​Market Funds to New Investment". It says, "J.​P. Morgan Chase & Co. (​JPM), Goldman Sachs Group Inc. (​GS) and BlackRock Inc. (​BLK) are closing their European money-​market funds to new investment after the European Central Bank slashed deposit rates to zero. These funds and others have struggled to provide returns to investors since central banks in Europe, the U.​S. and Japan cut interest rates to near zero during the recent financial crisis. The ECB has held rates slightly above those of the Federal Reserve and Bank of Japan, but the deposit-​rate cut and a 25-​basis-​point reduction in its benchmark lending rate Thursday signaled that the days of European funds enjoying slightly higher yields may be ending. By closing the funds to new investment, the fund managers are protecting their current investors by not dividing the meager returns earned among more stakeholders." The WSJ piece adds, "Of the total $​137 billion in euro-​denominated money market funds, J.​P. Morgan manages about $​30 billion, BlackRock manages about $​23 billion and Goldman Sachs manages about $​13 billion, according to Peter Crane, president of Crane Data.... European funds were yielding 0.​14% as of Thursday, according to Peter Crane, president of Crane Data. It would take about a month for the cut in ECB rates to bring down yields even further. By contrast, U.​S. money-​market funds are yielding, on average, 0.​06%, Mr. Crane said."

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Bloomberg writes "​JPMorgan, Goldman Shut Europe Money Funds After ECB Cut". The article says, "JPMorgan Chase & Co. (​JPM), Goldman Sachs Group Inc. and BlackRock Inc. (​BLK) closed European money market funds to new investments after the European Central Bank lowered deposit rates to zero. JPMorgan, the world'​s biggest provider of money-​market funds, won'​t accept new cash in five euro-​denominated money-​market and liquidity funds because the rate cut may result in losses for investors, the company said in a notice to shareholders. Goldman Sachs won'​t accept new money in its GS Euro Government Liquid Reserves Fund, and BlackRock, the world'​s largest asset manager, is restricting deposits in two European funds.... The ECB yesterday reduced its benchmark rate to a record low of 0.​75 percent and took its deposit rate to zero. Money funds have been struggling to invest client assets at a profit as interest rates globally are near record lows and Europe'​s sovereign debt crisis has reduced the supply of available debt. Managers have been forced to cut fees to keep customer returns above zero, and some have abandoned the business. All three firms said the restrictions are temporary and they will monitor market conditions. Investor redemptions from the funds are not being limited." The JPM funds involved include: JPMorgan Euro Liquidity Fund, Euro Government Liquidity Fund, Euro Money Market Fund, and Euro Liquid Market Fund. The Bloomberg piece adds, "[​JPMorgan] had $​417 billion in money fund assets as of May 31, making it the world leader, according to Crane Data LLC, a research firm based in Westborough, Massachusetts. The entire euro-​denominated money fund industry has about 108 billion euros, Crane Data'​s statistics show."

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The Wall Street Journal writes "​Money Funds Buck Euro-​Zone Retreat". It says, "At a time when many money-​market mutual funds are piling out of Europe, some are looking for more of it in their quest for higher returns. Eight of the 20 money funds with the most exposure to Europe, as measured by total assets at the end of May, increased their euro-​zone holdings between last August and May 31, according to iMoneyNet, a research firm in Westborough, Mass. Managers of the eight money-​market mutual funds that ramped up their European holdings include BlackRock Inc. and Goldman Sachs Group Inc.. Officials at such funds insist they aren'​t taking bigger risks, noting their heightened exposure to Europe is coming through short-​term "​repurchase agreements" issued by European banks.... Yields on repos backed by Treasurys have jumped to an annualized 0.​17%, up from 0.​11% in August, according to the Depository Trust & Clearing Corp., a securities clearinghouse. In contrast, the average annualized yield on money funds has shriveled to 0.​06%, down from 5% in mid-​2007, says researcher Crane Data LLC."

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