Money Fund Report Average (MFRA)

The Money Fund Report Average (MFRA) is a significant financial metric representing the average yield returns of major money market funds. This average is calculated and published weekly for both 7-day and 30-day yields. The MFRA is compiled by iMoneyNet, a subsidiary of Informa Financial Information, which has been a prominent figure in the industry since 1975 through its publication, the Money Fund Report.

Key Components

Average Yields: Reflect the aggregate performance of major money market funds over specified periods (7-day and 30-day yields).
Publication Frequency: Weekly updates allow investors to access the most current data available.
Source: Calculated and disseminated by iMoneyNet, renowned for its accuracy and reliability in financial information.

Examples

Institutional Investor Benchmark: Financial institutions may use the MFRA as a benchmark to gauge the performance of their own money market funds against industry standards.
Investment Decision-Making: Investors considering short-term capital management options might reference the MFRA to identify high-performing funds.
Financial Planning and Analysis: Analysts might use MFRA trends to forecast future money market conditions and provide investment advice.

Frequently Asked Questions (FAQs)

Q1: What is the primary purpose of the Money Fund Report Average? A1: The MFRA serves as a benchmark for assessing the performance of money market funds, allowing investors and financial analysts to compare yields and make informed investment decisions.

Q2: How often is the Money Fund Report Average published? A2: The average yields are published weekly, providing a consistent and up-to-date view of market performance.

Q3: Who compiles and publishes the Money Fund Report Average? A3: The MFRA is compiled and published by iMoneyNet, a subsidiary of Informa Financial Information.

Q4: Why is the Money Fund Report Average important for investors? A4: It offers a comparative metric that helps investors evaluate the performance of different money market funds, potentially guiding investment choices and portfolio adjustments.

Q5: Do the yields covered by the MFRA include all money market funds? A5: No, the MFRA covers major money market funds, leading to a representative but not exhaustive view of the market.

Money Market Fund: A type of mutual fund that invests in short-term, high-quality debt instruments and cash equivalents.
Yield: The income return on an investment, expressed as a percentage of the investment’s cost.
iMoneyNet: A subsidiary of Informa Financial Information, known for publishing the Money Fund Report.
Informa Financial Information: A global leader in financial data, research, and analysis.

Online References

Suggested Books for Further Studies

“The Handbook of Fixed Income Securities” by Frank J. Fabozzi
“Money Market Funds in the EU Law and Policy: Managing the Risk” by Vittorio Santoro
“Investing in Investment Funds For Dummies” by Moranna Columbro

Fundamentals of Money Fund Report Average: Investment Basics Quiz

### What does the Money Fund Report Average (MFRA) measure? - [ ] Bank deposit rates. - [x] Average yields of major money market funds. - [ ] Stock market returns. - [ ] Long-term bond rates. > **Explanation:** The Money Fund Report Average (MFRA) measures the average yields of major money market funds, providing insights for investors into current market performance. ### How often is the MFRA published? - [ ] Daily - [ ] Bi-weekly - [x] Weekly - [ ] Monthly > **Explanation:** The MFRA is published on a weekly basis, ensuring up-to-date yield information for investors. ### Which company is responsible for compiling the MFRA? - [ ] Bloomberg - [ ] Reuters - [ ] Fidelity - [x] iMoneyNet > **Explanation:** iMoneyNet, a subsidiary of Informa Financial Information, compiles the average yields reported in the MFRA. ### The MFRA provides average yields for which time frames? - [ ] 1-day and 7-day yields - [ ] 7-day and 15-day yields - [x] 7-day and 30-day yields - [ ] 30-day and 60-day yields > **Explanation:** The MFRA publishes average yields for 7-day and 30-day durations. ### Why is the MFRA important for investors? - [ ] It predicts future economic growth. - [ ] It helps investors choose individual stocks. - [x] It benchmarks money market fund performance. - [ ] It tracks inflation rates. > **Explanation:** The MFRA is used as a benchmark to evaluate the performance of money market funds, aiding investors in making informed decisions. ### What type of investments does a money market fund typically hold? - [ ] Real estate - [ ] Technology stocks - [x] Short-term, high-quality debt instruments - [ ] Cryptocurrency > **Explanation:** Money market funds usually invest in short-term, high-quality debt instruments and cash equivalents. ### What does a higher MFRA signify about money market fund performance? - [ ] Lower risk levels - [ ] Increased liquidity - [x] Higher yield returns - [ ] Minimal investment > **Explanation:** A higher MFRA indicates that the average yields of major money market funds are higher, reflecting better performance. ### Which entity benefits most from using the MFRA as a benchmark? - [ ] Retail stores - [ ] Technology companies - [x] Financial institutions - [ ] Manufacturing firms > **Explanation:** Financial institutions use the MFRA as a benchmark to compare the performance of their own money market funds and make investment decisions. ### What duration of yields does the MFRA NOT cover? - [ ] 7-day - [ ] 30-day - [x] 60-day - [ ] None of these > **Explanation:** The MFRA does not cover 60-day yields, only 7-day and 30-day yields. ### What is the primary source of the data used to calculate the MFRA? - [ ] Real estate records - [ ] Personal bank accounts - [x] Major money market funds - [ ] Government bond rates > **Explanation:** The MFRA is calculated using data from major money market funds, which are a type of mutual fund investing in short-term, high-quality debt instruments.

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Money Fund Report Average (MFRA)