More liquidity. New opportunities.

Combining our Integrated Fund Services with Markets capabilities we deliver a complete solution for money market funds to manage liquidity, credit and settlement processes.

The solution’s real-time cash management and end-to-end liquidity management enable funds to be fully invested throughout the day. It streamlines fund management to help you to drive better portfolio performance through expanded trading options and the ability to grow assets through BNY Mellon distribution channels.

Advantages

  • Our integrated money market fund servicing capabilities across custody, transfer agency and fund accounting and administration streamline processes, enhance controls, and help mitigate risk.

    • Reduce complexity: Single accountability with BNY Mellon delivering all services and one relationship manager acting as a single point of contact.
    • Reduce operational risk: Automated processes between transfer agency, custody and fund accounting and administration reduce the risk of failure points across trading and reporting.
    • High touch service: Experienced team supporting money market funds includes subject matter experts in all services with experience servicing some of the largest institutional money market fund structures in the industry totaling $1.4 trillion in assets under custody.

     

  • Better manage liquidity, credit and settlement with integrated solutions and real-time tools that expand your universe of liquidity.

    • Enable shareholder payments: Linked accounts enable the faster release of shareholder payments.
    • Reduce overdrafts in custody accounts: Through linked transfer agency and custody accounts, settled purchases received into the transfer agency account are automatically credited to the custody account.
    • Maximize liquidity: The balances in the transfer agency and custody accounts are linked, this maximizes your balances and reduces the need for credit.
    • Access credit quickly: Access to daylight credit on the transfer agency and custody accounts permits the fund to be fully invested while at the same time helping to facilitate settlement of all shareholder redemptions.
    • Enhance trade and settlement reporting: Real-time trade reporting enables the portfolio manager to have access to the information required to better manage returns.

     

  • Expanded trading options through BNY Mellon Markets provides the potential to improve yield.


    • Trade early: Ability to trade early provides the manager access to early-day rates available in the repo market. For flows that come in later in the day, the ability to trade later allows the manager to invest the late day cash maximizing yield.
    • Pursue additional investment opportunities: Access opportunities from a highly-rated counterparty, sponsor for FICC-SMP repo.
    • Synergies with custody: Integrated custody solution provides straight-through processing of trades, allows for real-time availability of cash upon trade settlement, potentially fewer trade fails, and reduction in overdrafts or need for the potential for credit on your custody account.

     

  • Grow assets and increase product visibility to new investors with access to BNY Mellon distribution portals.*

    • Access to more investors: Added distribution potential with Liquidity DIRECTSM and Pershing portal.*
    • Substitution for cash collateral: Potential for clients to use money market funds as a substitution for cash collateral.
    *Subject to meeting criteria of portal.

     

Case Study

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Money Market Advantage in Action

Learn how BNY Mellon's Money Market Advantage enabled one investment manager to enhance operational efficiency, expand opportunities, and reduce costs.

Money Market Fund Timeline

7:00AM:Full Access to Markets capability. BNY Mellon is a sponsor for the FICC-SMP repo which provides access to additional investment opportunities from a highly rated counterparty. 9:00AM – 6:00PM: Linked custody and transfer agency accounts. Eliminates wire transfers between accounts and potential failure points. Seamless release of shareholder redemptions FNAV redemptions released upon fund pricing. Real-time trade information and large trade notices are provided to the portfolio manager. Intraday Trading: Later day execution on short term fixed income investments. BNY Mellon Broker-Dealer Services provides synergies with sell-side counterparties. Tri-party and bi-lateral repo settlement. Competitive overnight rates for deposits. Access to BNY Mellon’s cash and collateral marketplace DBvX. 6:15PM – 7:00PM: All settled shareholder purchases are automatically credited to the custody account after the Fed close. Helps ensure the portfolio manager has full use of cash and overdrafts on the custody account are limited. Standalone Services 9:00AM – 6:00PM: Potential delays in shareholder redemption wires pending receipt of money from custodian. Inefficiencies and associated risks with respect to trade reporting and cash availability. Wires are required throughout the day to move subscription and redemption money between the transfer agency and custody accounts. Requires resources and introduces risk and failure points. 5:45PM – 6:00PM: Transfer agents are challenged to meet the Fed wire closing deadline for shareholder purchases received after 5:45PM potentially causing overdrafts in the custody account. Possible reconciliation problems between the custodian and transfer agent due to attempts to sweep purchase proceeds at 6:00PM.
Money Market Advantage Helps the Fund be Fully Invested Throughout the Day.

The above shows a comparison of the day in the life of a money market fund using Money Market Advantage and one using standalone services. Money Market Advantage combines custody, transfer agency, and capital markets services to provide institutional money market funds a better way to manage their liquidity, credit needs and settlement processes, helping to enable the fund to be fully invested throughout the day.

Why BNY Mellon?

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One of the largest global custodians supporting $35.5 trillion in assets. 1

1As of June 31, 2019.

four people

#1 Full-service transfer agent2 supporting $3.2 trillion in assets globally.3

22019 Mutual Fund Service Guide based on #of clients.
3As of June 31, 2019.

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#2 Full-service fund accounting provider4supporting $5 trillion in assets globally.5

42019 Mutual Fund Service Guide based on total assets.
5As of April 30, 2019.

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