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☆ With interest rates expected to be higher for longer, here's what to do with your cash
▼ + stars: | 2024-04-12 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

That means those saving cash in money market funds and Treasury bills can expect to see their rates stay higher for longer. The annualized seven-day yield on the Crane 100 list of the 100 largest taxable money funds is currently 5.13%. The appetite for money market funds is evident in the record amount of cash pouring into the products. Last week, there was $6.11 trillion sitting in money market funds, according to the Investment Company Institute , up from $5.87 trillion in mid-December. Then there are moderate risk investors with longer time horizons, which Vanguard surveys show are the majority of investors, he said.

Persons: They've, Peter Crane, Shelly Antoniewicz, Marguerita Cheng, you'll, Cheng, Roth, Barry Glassman, Glassman, he's, Roger Aliaga, Diaz, Vanguard's, Cash, Aliaga Organizations: Federal, Crane, Investment Company Institute, Blue, Global, CNBC, Wealth, Treasury, Vanguard

☆ Investors are unlikely to dump cash in favor of locking in bond yields, JPMorgan says
▼ + stars: | 2024-02-02 | by ( Michelle Fox | ) www.cnbc.com time to read: +6 min

The inflows this year come at a time when, historically, money funds see seasonal outflows. Ho calculates about $5.5 trillion of the assets sitting in money market funds are core liquidity for companies and cash savings for retail investors. In fact, the most recent push into money market funds is coming from institutional investors, according to the ICI. Assets of institutional money market funds increased by $33.06 billion to $3.65 trillion, while retail money market funds rose by $8.62 billion to $2.35 trillion, the organization found. That's because yields on money market funds lag behind Fed moves.

Persons: Teresa Ho, Ho, Powell, Shelly Antoniewicz, Jerome Powell, AllianceBernstein, Monika Carlson, Carlson, Amy Arnott, Arnott, Rob Williams, Charles Schwab Organizations: JPMorgan, Investment Company Institute, Federal Reserve, CNBC, ICI, Fed, Treasury, Morningstar, Charles, Charles Schwab Center, Financial Research Locations: Treasurys

☆ Nearly $6 trillion is sitting in money market funds. Here's where that cash can go next
▼ + stars: | 2023-12-14 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Money market funds were a hot item this year, but it may be time to think about shifting some of that cash into other investments. Investors flooded into the funds, bringing the total assets to $5.89 trillion for the week ending Dec. 13, according to the Investment Company Institute. The Crane 100 Money Fund Index currently has an annualized 7-day yield of 5.19%. Yet, if rates go down next year, as expected, the yields in short-term instruments such as money market funds and high-yield savings accounts will follow suit. The firm also likes stocks with high dividend growth and free cash flow , such as Kroger , CVS Health and Qualcomm .

Persons: Josh Brown, VIG, Wolfe, Barry Glassman, Glassman Organizations: Investment Company Institute, ICI, Federal Reserve, Ritholtz Wealth, Wolfe Research, Cola, Exxon Mobil, Kroger, CVS Health, Qualcomm, Investors, Wealth Services, Dodge, Cox Income Fund, Fed, CNBC

☆ Mars, accused of using child labor in its supply chain, says it aims to end the practice
▼ + stars: | 2023-11-30 | by ( Amelia Lucas | ) www.cnbc.com time to read: +3 min

For more than two decades, the world's largest chocolate makers have been pledging to eliminate — or at least reduce their reliance on — child labor. For its part, Mars' latest deadline to end child labor in its supply chain is 2025. The company said more than 65% of its West African cocoa supply chain has already achieved compliance. Read the full statement from Mars below:Mars unequivocally condemns the use of child labor. It has no place in our supply chain, and we are fully committed to helping to eradicate it.

Persons: Mars, Cargill Organizations: CBS News, CNBC, CBS, of Washington, Cargill, U.S, Supreme, Nestle USA, Labor, Cocoa Initiative, ICI, Rainforest Alliance, Fairtrade, CNBC PRO Locations: Ghana, Superior, West Africa

ORLANDO, Florida, Nov 29 (Reuters) - If cash has been king, the Fed may be plotting regicide. But once the first Fed cut comes into view, that money will move rapidly out the maturity curve and into riskier assets. A recent report by BlackRock, the world's largest asset manager, notes that on average, cash returns 4.5% in the year following the final Fed rate hike, significantly underperforming a wide array of asset classes. Of that, $2.24 trillion is in retail investor funds and $3.52 trillion is in institutional funds. According to Bank of America, investors have poured $1.2 trillion into money market funds so far this year.

Persons: Christopher Waller, Justin Christofel, Cash, Goldman Sachs, Ray Dalio, Jamie McGeever, Josie Kao Organizations: BlackRock, Fed, ICI, Bank of America, Goldman, BofA, Deutsche Bank, U.S, Bridgewater, Reuters, Thomson Locations: ORLANDO, Florida, BlackRock

☆ A 'sea change' may be coming for investment advice about 401(k)-to-IRA rollovers, one expert says
▼ + stars: | 2023-11-08 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Bloomberg | Bloomberg | Getty ImagesWhy Labor Department wants to raise protectionsIn 2020, about 5.7 million Americans rolled a total $618 billion into IRAs, according to most recent IRS data. IRAs held about $11.5 trillion in 2022, almost double the $6.6 trillion in 401(k) plans, according to the Investment Company Institute. Here's the problem, in the eyes of the Labor Department: 401(k) investors have certain protections that don't generally extend to IRA investments or the advice to move money to IRAs. "ERISA fiduciary duties are the highest fiduciary duties under U.S. law," said Josh Lichtenstein, partner at law firm Ropes & Gray. That advice typically generates compensation like a commission for the broker or agent, and the Labor Department is concerned those incentives may bias recommendations for certain investments that pay them more but aren't in an investor's best interests.

Persons: IRAs, Josh Lichtenstein, Pew, Julie A, Su, Tom Williams, David Levine Organizations: Bloomberg, Getty, Labor Department, Investment Company Institute, ICI, Gray, Investors, Pew, Trusts, Labor, Health, Education, Washington , D.C, CQ, Inc, The Labor Department, White House Council, Economic Advisers, Groom Law Locations: rollovers, IRAs, Washington ,

☆ Bond fund managers head for third year of losses for first time in decades
▼ + stars: | 2023-10-31 | by ( Harry Robertson | ) www.reuters.com time to read: +4 min

Reuters GraphicsEuropean funds have effectively returned nothing this year after two down years, Morningstar data shows. Government bond funds have fared even worse and are set for three years of losses in both the U.S. and Europe. Bond yields rise as prices fall, and vice versa. Reuters GraphicsBank of America said there were $5.6 billion of inflows to long-dated Treasury funds last week, the largest on record. ICI data shows that U.S. money market funds have ballooned to $5.6 trillion in assets, from $4.6 trillion in October last year.

Persons: Dado Ruvic, Stefano Fiorini, Oliver Blackbourn, Janus Henderson, You've, Jonas Goltermann, Max Kettner, Harry Robertson, Mark Potter Organizations: REUTERS, Reuters Graphics, Morningstar, U.S, Generali Investments Partners, Reserve, Reuters, Treasury, Citi, ICE, Fed, Capital Economics, Investment Company Institute, Reuters Graphics Bank of America, Reuters Graphics Reuters, ICI, HSBC, Thomson Locations: Europe, U.S

Based on International Monetary Fund data on comparative international investment positions through the early part of this year, U.S. portfolio investment overseas - equity, fund shares and debt securities - stood at more than $14.5 trillion. US funds shy of overseas equityUS economic growth roaring at more than 5%US expensive for a reason? The upshot could be an ever wider U.S. deficit on its net international investment position - potentially lifting the dollar as that inflates, but leaving it vulnerable to the yawning gap and foreign investor sentiment down the road. IMF chart on US net international investment deficitUS stocks lead the packThe opinions expressed here are those of the author, a columnist for ReutersEditing by Josie KaoOur Standards: The Thomson Reuters Trust Principles. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Brendan McDermid, that's, it's, Julius Baer's, Yves Bonzon, Josie Kao Organizations: New York Stock Exchange, REUTERS, Atlanta Federal, Monetary, ICI, Thomson, Reuters Locations: New York City, U.S, China, Gaza, Russia, Ukraine, Moscow, Washington, Taiwan, United States, Swiss, Switzerland, Germany

☆ These money market funds have yields that top 5%
▼ + stars: | 2023-10-11 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

With yields at around 5%, money market funds have been attracting investors in droves — yet not all funds are the same. Right now, prime funds yield an average 5.18%, while the average government fund's yield is 4.98%, per iMoneyNet. The weighted average maturity of retail prime money market funds is around 32 days, said Shelly Antoniewicz, deputy chief economist at the Investment Company Institute. Correction: A table in an earlier version of this report incorrectly described the listed funds as government money market funds. They are prime money market funds.

Persons: Dave Lafferty, Deborah Cunningham, Shelly Antoniewicz, Hermes, Cunningham, Crane, Peter Crane Organizations: Crane Data, Schwab Asset Management, Federated Hermes, Investment Company Institute . Retail, Federal Reserve, ICI, Government, Fed

☆ Investors roll more than $600 billion a year to IRAs. Anticipated Labor Department rules could raise their protections
▼ + stars: | 2023-10-06 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

This is what the Labor Department will likely tweak, attorneys said. Now, the Labor Department is trying again, though its rule likely won't be as far-reaching, experts said. The OMB has 90 days to review the rule, Borzi said, after which the Labor Department would issue its proposal publicly. watch nowBased on recent legal clues, attorneys expect the Labor Department will seek to raise the bar on all rollover advice provided by the financial ecosystem. That generally means investment advice must be given solely in investors' best interests.

Persons: IRAs IRAs, Phyllis Borzi, Obama, Reish, —, Borzi, Andrew Oringer, Sen, Bill Cassidy, Virginia Foxx, There's, They're, Fred Reish, Drinker Biddle Organizations: U.S . Department of Labor, Washington , D.C, Washington Post, The Washington Post, Getty, Investment Company Institute, ICI, Labor, Pew Research Center, Labor Department, Management, Budget, OMB, Wagner Law, Critics, Rep Locations: Washington ,, IRAs

☆ Investors can get a 5% yield in these assets and skip the bond market volatility
▼ + stars: | 2023-10-06 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Investing in money market funds The interest in money market funds began to heat up when the Federal Reserve started raising interest rates last year, Antoniewicz said. Some $64.13 billion flowed into money market funds the week ended Wednesday, bringing total net assets to a record $5.71 trillion, per the Investment Company Institute . Net assets also hit a record within retail money market funds, reaching $2.16 billion, the ICI said. The annualized 7-day yield yield on the Crane 100 list of the 100 largest taxable money funds is currently 5.18%. "So if you have stability in a money market fund and an equal or higher yield, why would anyone consider leaving a money market fund to go longer term and have the volatility?"

Persons: Peter Crane, Jean Boivin, Shelly Antoniewicz, Antoniewicz, Barry Glassman, Glassman, I'm Organizations: Crane, Treasury, Federal Reserve, BlackRock Investment Institute, Investment Company Institute, ICI, Data, Wealth Services

☆ Record inflows are expected this year in money market funds. Here are the top yielding plays
▼ + stars: | 2023-09-25 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

Americans continue to flock to money market funds, attracted by yields the assets haven't seen in years. In fact, retail investors in money market funds have grown 40% over the past year, said Peter Crane, founder of Crane Data, a firm that tracks money markets. They also account for almost 40% of the whole money fund pie, up from 33% a year ago, he said. "They will keep hitting records, there is no doubt of that," Crane said of money market fund inflows. Here are the top yielding government money market funds, per Crane Data, as of July 31, the latest data available.

Persons: Shelly Antoniewicz, Antoniewicz, Peter Crane, Crane, givens Organizations: Bank of America, Investment Company Institute, Assets, ICI, Crane

☆ The SEC has a problem with the way funds are named, and is looking to do something about it
▼ + stars: | 2023-09-20 | by ( Bob Pisani | ) www.cnbc.com time to read: +5 min

The Securities and Exchange Commission chair and the rest of the commissioners will vote on a new rule that would clarify what investment funds can call their funds. The SEC wants to clarify rules that govern what investment funds can name their funds. This is especially evident in the naming of funds, whether they are mutual funds or exchange-traded funds. The SEC proposal "would modernize the Names Rule for today's markets," he added. If the proposed rule is adopted, some funds may be under pressure to change their names.

Persons: Gary Gensler, Gensler, there's, There's, Dorothy M, Donohue Organizations: The Securities, Exchange Commission, SEC, Electric Vehicle Mutual Fund, Electric Vehicle, Nvidia, Microsoft, Electric Vehicles, The Investment Company Institute

☆ Asian shares set for worst month since Feb on China gloom
▼ + stars: | 2023-08-31 | by ( Stella Qiu | ) www.reuters.com time to read: +3 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) added 0.1% but was still headed for a monthly loss of 5.9%, the largest since February. Data on Thursday showed China's manufacturing activity contracted for a fifth straight month in August, and the expansion in services sector lost a little momentum. Chinese blue-chips (.CSI300) were flat but a 2.5% rebound in property stocks boosted Hong Kong's Hang Seng Index, which rose 0.7%. Barring the China gloom, investor confidence jumped in August, with a global confidence index (ICI) from State Street Global Markets surging 11.4 points to 107.7, led by North America which recorded the strongest reading in a year on easing recession fears. Brent crude futures were little changed at $85.88 per barrel and U.S. West Texas Intermediate crude futures were up 0.1% at $81.74.

Persons: Marvin Loh, payrolls, Stella Qiu, Shri Navaratnam Organizations: U.S, PCE, Japan's Nikkei, ICI, Street Global, North, Global ICI, State Street Global, Federal, European Central Bank, Brent, . West Texas, Thomson Locations: China, SYDNEY, Asia, Pacific, Japan, North America, Europe, Germany, Spain

☆ Béa Fertility wants to provide an at-home alternative to IVF. Check out the 9-slide pitch deck the startup used to secure $3.2 million.
▼ + stars: | 2023-07-31 | by ( Riddhi Kanetkar | ) www.businessinsider.com time to read: +3 min

The startup aims to develop a more affordable at-home alternative to IVF. A startup that has created an at-home fertility treatment device for consumers has just secured $3.2 million from Octopus Ventures. "A lot of options are out of alignment — so we've opened the fertility pathway and created a treatment that's more affordable." The startup is offering a medical device and treatment kit that delivers ICI. The startup is gearing up to launch a pilot program with the UK's National Health Service and enroll its users in a fertility treatment study.

Persons: Tess Cosad, we've, It's Organizations: Octopus Ventures, ICI, UK's National Institute of Health, National Health Service, UK, Vira Health, Forward Partners, Q Ventures, NHS Locations: COVID, Vira, JamJar

☆ What Is an Expense Ratio?
▼ + stars: | 2023-07-24 | by ( E. Napoletano | ) www.wsj.com time to read: +8 min

The easiest way to think of the expense ratio is the fee you pay to the portfolio manager of your mutual fund. When you invest in an ETF or mutual fund, the fund’s prospectus will state its expense ratio. How expense ratios impact investment returnsBefore you can look at how expense ratios impact your investment returns, it helps to understand what an average expense ratio looks like. While the average active stock fund’s expense ratio was 0.66% in 2022, the average bond fund charged just 0.44%, according to ICI. Remember: It should be easy to find the fund’s expense ratio.

Persons: it’s, Chloe Wohlforth, Russell, Warren Buffett, Peter Lynch —, Merrill Lynch, Morgan Stanley, Justin McCurdy, “, ”, you’re, McCurdy Organizations: Investment Company Institute, ICI, BuySide, SEC, Morningstar Locations: —, New York, U.S, Angeles

☆ Regulators tighten screw on investment fund redemptions
▼ + stars: | 2023-07-05 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

Central banks had to inject liquidity into markets in March 2020 during COVID-19 lockdowns as money market funds struggled in the face of a "dash for cash" to meet promises of daily redemptions. Property funds aimed at retail investors have also been offering daily redemptions and some have faced multiple suspensions in recent years due to market turbulence. For funds that invest over 50% in liquid assets, daily dealing would remain appropriate. Funds that invest mainly in less liquid assets could still offer daily redemptions if they can show regulators an ability to use specified "anti-dilution" liquidity management tools (LMTs), or else they must tighten redemption terms, the FSB said. LMTs include being able to deduct a fee from redemptions to end "first-mover advantage", or investors who rush for the exits leaving those remaining worse off.

Persons: IOSCO, Martin Moloney, Huw Jones, David Holmes, Christina Fincher Organizations: Industry, IMF, ICI, Thomson Locations: COVID, redemptions

However, the golf simulator transaction appears to have been structured to avoid Florida’s rigorous ethical disclosure requirements, said two governance experts in Florida. Florida state law requires public officials to file quarterly reports listing all gifts received with a value over $100. Uthmeier wrote that the loan was “permissible” according to state law and the Governor’s Ethics Code. Trump paid for his own golf simulator, according to the Washington Post. According to the list, the “acquisition cost” of both the treadmill and the golf simulator are listed as $1.

Persons: Ron DeSantis, DeSantis, Morteza, Donald Trump, Lynn Blais, Ben Wilcox, James Uthmeier, ’, Uthmeier, Barbara Petersen, Hosseini, Trump, Barack Obama, Ronald Watson, cabana, Watson, Wilcox, Caroline Klancke, Jason Szep Organizations: cabana, ICI Homes Residential Holdings, Mansion Commission, Commission, Florida’s Department of Management Services, Florida Center, Government, University of Florida, Reuters, aboutGOLF, Washington Post, Thomson Locations: Florida, Hosseini, DeSantis, Tallahassee, Ohio

☆ Top Donor Provided Ron DeSantis, an Avid Golfer, With a Costly Simulator
▼ + stars: | 2023-06-21 | by ( Alexandra Berzon | Maggie Haberman | ) www.nytimes.com time to read: +3 min

A list of the mansion’s acquisitions that was provided by the governor’s office included rugs and a Peloton bike donated to a previous administration. On the campaign trail, Mr. DeSantis, an avid golfer, has been playing up his working-class roots in an effort to connect with voters in early voting states. His appointment predated Mr. DeSantis’s first term in office, but he was reappointed by Mr. DeSantis in 2021. The front-runner, Mr. Trump, has repeatedly sought to draw attention to Mr. DeSantis’s use of private donor planes. Jason Miller, a Trump aide, reacted to the news reports on Wednesday on Twitter, saying it was “Ron DeSantis’ Florida Swamp in Action!”

Persons: DeSantis, Donald J, Trump, Hosseini, Jeremy Redfern, ” Mr, Redfern, DeSantis’s, James Uthmeier, Jason Miller, Ron DeSantis Organizations: Republican, New York Times, ICI Homes, University of Florida, Mansion Commission, Twitter Locations: Florida, South Carolina, New Hampshire, Milwaukee

☆ Novocure's lung cancer device study raises concerns around commercial use
▼ + stars: | 2023-06-06 | by ( Khushi Mandowara | ) www.reuters.com time to read: +2 min

June 6 (Reuters) - Novocure Ltd's <NVCR.O> experimental device to treat a type of lung cancer helped in extending overall survival among patients in a late-stage study, but concerns around its commercial success sent the medical device maker's shares down more than 34% on Tuesday. The device, used with certain chemotherapies and immunotherapies, helps in creating electric fields that disrupt cancer cell growth. Data from the study shows that the device, along with a class of immunotherapies know as immune checkpoint inhibitors (ICI), extended survival by about eight months, compared to patients treated with ICI alone. Lung cancer is the most common cause of cancer-related death worldwide, and NSCLC accounts for about 85% of all lung cancers, the company said. Reporting by Khushi Mandowara in Bengaluru; Editing by Nivedita Bhattacharjee, Shinjini Ganguli and Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

Persons: Emily Bodnar, Jefferies, Michael Yee, Novocure, Khushi, Nivedita Bhattacharjee, Shinjini, Maju Samuel Organizations: ICI, Wainwright, U.S . Food, Drug Administration, Thomson Locations: United States, U.S, Bengaluru

☆ Signs of banking stability as regionals gained this week and money market inflows reversed
▼ + stars: | 2023-04-21 | by ( Bob Pisani | ) www.cnbc.com time to read: +1 min

A couple signs of stability for those worried about the banking crisis: regional bank stocks are mostly up this week, and inflows into money market funds have reversed. The Regional Bank ETF (KRE) is still 25% lower than it was in early March. Another sign of calm: money market inflows have stopped. Total assets in money market funds fell by $68.64 billion in the week ended April 19, according to the Investment Company Institute. From late February to early April, net assets of money market funds increased by about 10%, to $5.27 trillion.

☆ Money-market funds' assets fall for the first time since the banking turmoil started, snapping a trend of record inflows
▼ + stars: | 2023-04-21 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +2 min

US money-market funds just saw their assets drop for the first time since early March, snapping a trend of record inflows. It's also the biggest such fall since July 2020 as US taxpayers were due to file their taxes in the past week, according to Bloomberg. Money-market funds saw large inflows in recent months as high yields and the banking jitters fueled a flight of money into them. In the weeks following SVB's collapse, money-market funds saw accelerated inflows, with their total assets hitting a record high of $5.28 trillion as of April 12, per the ICI. But money-market funds had been raking in cash even before the banking turmoil thanks to the high yields they offered, following the Federal Reserve's interest-rate increases over the past year.

☆ These stocks could get a pop if they go in to S&P 500 index following rule change
▼ + stars: | 2023-04-18 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

The change applies to the S & P Composite 1500 Index and its components, including the S & P 500 , the world's largest stock benchmark and the one with the widest following. It forces buying from every passive index fund manager whose fund tracks the S & P 500, S & P Midcap 400 or Smallcap 600, boosting the stock price in the short term. Evercore ISI is bullish on the prospect for inclusion in the S & P 500. Alternative asset managers Ares Management and Blackstone have also became eligible for S & P 500 inclusion. "Excluding BX from the S & P 500 has hurt the index's performance... and BX also yields a dividend that is ~2x the average S & P 500 company."

☆ Investing isn't free. But here's why 20% of investors think it is
▼ + stars: | 2023-03-25 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Investment fees may be a worthy addition to that list in the modern era — though not all investors are aware of this near-universal fact. These firms — whether an investment fund or financial advisor, for example — generally levy investment fees of some kind. watch now"And that makes you much less sensitive to the fees you're paying — in amount and whether you're paying fees at all." Here's the good news for many investors: Even if you haven't been paying attention to fees, they've likely declined over time. This is largely due to investors' preferences for low-cost funds, particularly so-called index funds, Morningstar said.

☆ People are pouring cash into money market funds at the highest rate since the start of COVID as depositors flee banking turmoil
▼ + stars: | 2023-03-17 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

Money market funds drew in the most cash since early 2020 as depositors sought safety during a shakeup in the banking industry. About $121 billion was poured in money market funds over the past week, the Investment Company Institute said. Last week's shutdown of Silicon Valley Bank was the first bank seizure since 2008. For the week that ended on Wednesday, $120.93 billion flew into money market funds, the Investment Company Institute said Friday. The push of cash into money market funds resulted in a record $5.01 trillion in total assets tracked by ICI.

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