New Merrill Edge cash solutions (possibly?)

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Direwolf14
Posts: 19
Joined: Tue Apr 03, 2018 1:40 pm

New Merrill Edge cash solutions (possibly?)

Post by Direwolf14 » Wed Sep 11, 2019 10:43 am

I know that the question has been asked many times where to park cash at Merrill Edge. The suggested solutions seem to be either Preferred Deposit or some sort of ultra short-term bond ETF. However, I just stumbled across a "Cash Management Solutions" page in ME under Research / Mutual Funds. Has anyone attempted to use these funds in their ME CMA? Any gotchas? Some of these funds settle the same business day and have higher yields than Preferred Deposit, so could be interesting (especially if a percentage is state tax free). Thanks.

P.S. Sorry for the formatting
Cash Management Solutions
Merrill offers access to a variety of investment and bank deposit solutions designed to provide liquidity, relative safety and competitive yields for your cash holdings. Below you will find the availableFootnote 1 money market funds as well as the available bank deposit products. Please note that initial deposit transactions into any of the bank deposit products cannot be conducted online, please contact a Merrill Representative to complete these transactions.

All money market mutual funds and bank deposits included on this page are non-sweep products - an order must be entered for all transactions.

Money market mutual fund performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. Performance data for the most recent month end may be obtained by contacting your financial advisor or Merrill Representative. If you are a Merrill Edge® Self-Directed client please call the Investment Center at 877.653.4732. For all other Merrill clients please call the Merrill Advisory Center or a Merrill Financial Solutions Advisor at 888.ML.INVEST (888.654.6837).

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Money Market Funds - Market Price and 7-Day Yield as of 09/10/2019

Money Market Fund Name	Symbol	Action	Market Price (NAV)	7-Day Yield	Initial Minimum Investment	Sub. Minimum Investment	Cash Equivalent for Cash Covered Puts	SIPC / FDIC Insured	Settlement	Cutoff
BlackRock Liquidity Funds California Money Fund Portfolio Institutional3	MUCXX	Trade MUCXX	$1.0002	0.94%	$100,000.00	$0.00	N	SIPC	Next business day	12:00 PM EST
BlackRock Liquidity Funds Federal Trust Fund Portfolio Institutional2	TFFXX	Trade TFFXX	$1.00	1.95%	$100,000.00	$0.00	Y	SIPC	Next business day	2:30 PM EST
BlackRock Liquidity Funds FedFund Portfolio Institutional2	TFDXX	Trade TFDXX	$1.00	2.01%	$100,000.00	$0.00	Y	SIPC	Same business day	5:00 PM EST
BlackRock Liquidity Funds MuniCash Portfolio Institutional3	MCSXX	Trade MCSXX	$1.0001	1.14%	$100,000.00	$0.00	N	SIPC	Next business day	12:00 PM EST
BlackRock Liquidity Funds New York Money Fund Portfolio Institutional3	MUNXX	Trade MUNXX	$1.0000	1.09%	$100,000.00	$0.00	N	SIPC	Next business day	12:00 PM EST
BlackRock Liquidity Funds TempCash Portfolio Institutional3	TMCXX	Trade TMCXX	$1.0006	2.15%	$100,000.00	$0.00	N	SIPC	Next business day	2:30 PM EST
BlackRock Liquidity Funds T-Fund Institutional2	TSTXX	Trade TSTXX	$1.00	1.99%	$100,000.00	$0.00	Y	SIPC	Next business day	4:00 PM EST
BlackRock Liquidity Funds T-Fund Portfolio Cash Management2	BPTXX	Trade BPTXX	$1.00	1.49%	$5,000.00	$0.00	Y	SIPC	Next business day	4:00 PM EST
BlackRock Liquidity Funds Treasury Trust Fund Portfolio Institutional2	TTTXX	Trade TTTXX	$1.00	1.92%	$100,000.00	$0.00	Y	SIPC	Same business day	1:45 PM EST
Money Market Obligations Trust Federated Government Obligations Fund Institutional2	GOIXX	Trade GOIXX	$1.00	1.99%	$100,000.00	$0.00	Y	SIPC	Same business day	1:45 PM EST
Money Market Obligations Trust Federated Prime Value Obligations Fund Institutional3	PVOXX	Trade PVOXX	$1.0002	2.19%	$100,000.00	$0.00	N	SIPC	Next business day	3:00 PM EST
Money Market Obligations Trust Federated Treasury Obligations Fund Institutional2	TOIXX	Trade TOIXX	$1.00	1.99%	$100,000.00	$0.00	Y	SIPC	Same business day	1:45 PM EST
Money Market Obligations Trust Government Obligations Tax-Managed Fund Institutional2	GOTXX	Trade GOTXX	$1.00	1.96%	$100,000.00	$0.00	Y	SIPC	Same business day	11:45 AM EST
Money Market Obligations Trust -IS- Federated Institutional Tax-Free Cash Trust3	FFTXX	Trade FFTXX	$1.0000	1.12%	$100,000.00	$0.00	N	SIPC	Next business day	1:00 PM EST
Money Market Obligations Trust US Treasury Cash Reserves Institutional2	UTIXX	Trade UTIXX	$1.00	1.91%	$100,000.00	$0.00	Y	SIPC	Same business day	11:45 AM EST
Footnote 1 The availability of the bank deposits and money market mutual funds included on this page is based on account type and may depend on other eligibility criteria. Please contact your Merrill Advisor or Representative as restrictions do apply.
Investing involves risk. For more complete information on any mutual fund, please request a prospectus and/or, if available, a summary prospectus from your Merrill Lynch Wealth Management Advisor or a Merrill Financial Solutions Advisor and read it carefully. Before investing, carefully consider the investment objectives, risks, and charges and expenses of the fund. This and other information can be found in the fund's prospectus and/or, if available, summary prospectus.

Footnote 2 You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Footnote 3 You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

aristotelian
Posts: 6045
Joined: Wed Jan 11, 2017 8:05 pm

Re: New Merrill Edge cash solutions (possibly?)

Post by aristotelian » Wed Sep 11, 2019 2:48 pm

The only one I see without a $100K minimum only yields 1.49%. Not a great option IMO.

Culbretd
Posts: 101
Joined: Sat Mar 24, 2018 4:06 am

Re: New Merrill Edge cash solutions (possibly?)

Post by Culbretd » Thu Sep 12, 2019 3:43 am

So if one has $100,000 in cash which fund should they use? I'm a little confused trying to read that.

GatorFL
Posts: 36
Joined: Fri Aug 17, 2018 12:07 pm

Re: New Merrill Edge cash solutions (possibly?)

Post by GatorFL » Thu Sep 12, 2019 4:12 am

I use TMCXX and PVOXX as cash sweep accounts in Merrill Edge. I spoke to them about the new Cash Management Solutions options shortly after it launched and these 2 had the best yield.

Topic Author
Direwolf14
Posts: 19
Joined: Tue Apr 03, 2018 1:40 pm

Re: New Merrill Edge cash solutions (possibly?)

Post by Direwolf14 » Thu Sep 12, 2019 9:18 am

aristotelian wrote:
Wed Sep 11, 2019 2:48 pm
The only one I see without a $100K minimum only yields 1.49%. Not a great option IMO.
Preferred Deposit also has a 100k minimum initial investment (as do the higher yielding MM funds at other institutions like Fidelity), so still an apples-to-apples comparison.

Topic Author
Direwolf14
Posts: 19
Joined: Tue Apr 03, 2018 1:40 pm

Re: New Merrill Edge cash solutions (possibly?)

Post by Direwolf14 » Thu Sep 12, 2019 9:22 am

GatorFL wrote:
Thu Sep 12, 2019 4:12 am
I use TMCXX and PVOXX as cash sweep accounts in Merrill Edge. I spoke to them about the new Cash Management Solutions options shortly after it launched and these 2 had the best yield.
Thanks, GatorFL. Do you happen to know if Merrill has a minimum balance requirement after the minimum initial investment in these funds? Some institutions have 10k or similar requirements.

skibummer
Posts: 2
Joined: Wed Aug 07, 2019 5:44 pm

Re: New Merrill Edge cash solutions (possibly?)

Post by skibummer » Thu Sep 12, 2019 9:27 am

Per the ME rep there is no ongoing minimum requirement for those funds or deposit accounts that have a $100,000 minimum initial investment. Of note, several of the $100,000 min initial investment MM mutual funds have a $1000 min additional investment requirement. Also the MM mutual funds and the preferred deposit accounts are not sweep accounts, but both can be traded from the online platform (this is a new feature) as the preferred deposit option had to be done over the phone in the past.

atdharris
Posts: 142
Joined: Wed Jan 02, 2019 3:18 pm

Re: New Merrill Edge cash solutions (possibly?)

Post by atdharris » Thu Sep 12, 2019 10:11 am

Is there any options for something less than $100k? I don't have that kind of money sitting in cash.

Edit: nevermind, I see only 1 fund, and it has a .69 management fee and yields only 1.49%. I may as well keep my cash in SHV.

Startled Cat
Posts: 461
Joined: Thu Apr 03, 2008 8:54 pm

Re: New Merrill Edge cash solutions (possibly?)

Post by Startled Cat » Thu Sep 12, 2019 10:37 am

Thanks for pointing these out. Some of them look like good alternatives to the BIL ETF, which I'm currently using. I'm thinking of using GOTXX. The SEC yield is a few basis points higher, and using a money market fund instead of ETF would simplify tax reporting because individual sales wouldn't need to be reported.

It's interesting that the yield on offer is significantly higher than FDLXX at Fidelity.

GatorFL
Posts: 36
Joined: Fri Aug 17, 2018 12:07 pm

Re: New Merrill Edge cash solutions (possibly?)

Post by GatorFL » Thu Sep 12, 2019 1:04 pm

Skibummer is correct, no ongoing requirement for maintaining the 100K. In fact, both are treated the same as cash in terms of trading, meaning that you can sell from either of those funds and don't have to wait for the settling period, you can basically use them just like cash to make trades.

Gator

isira
Posts: 14
Joined: Fri Nov 16, 2018 10:15 pm

Re: New Merrill Edge cash solutions (possibly?)

Post by isira » Thu Sep 12, 2019 3:03 pm

I am currently parking my cash in GOTXX until preferred rewards kicks in. It invests 100% in direct federal obligations so I can claim 100% California tax exemptions. All other funds appear to have a majority stake in repurchase agreements which aren't tax exempt.

AFAIK, only BPTXX can be traded without calling in. I did read in another thread a few days ago that you can now deposit/withdraw from Preferred Deposit without needing to call in.

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