Financial Times. No paywall for me.
No indication, though, that T-C has reversed its decision to terminate its fee waiver on the CREF MMA (if necessary to avoid negative returns) at the end of the year.
Dan Weiner’s take on CREF Money Market Account Yields and fee waivers:
“I know many of you are teachers or were at one time, and if you still have money in TIAA’s CREF Money Market Account, you need to know that they are already waiving fees to keep the yield above zero—but only until the end of the year. After that, they’ll let the yield go negative if necessary and, to put insult to injury, TIAA is reserving the right to recoup any fees it waives. . . . I tell you this because that is one thing Vanguard won’t do. In the aftermath of the Financial Crisis, as I was reporting on firms like Charles Schwab, which was reserving the right to recoup lost revenues, Vanguard added language to its money market fund reports specifying that they would not recoup waived fees—never. That’s a big deal, and kudos to them for saying so.
When you have 0 or negative interest rates, money market rates are like pushing a boulder up a hill It is all part of the push to get you in the riskiest asset class you are able to stomach. Savers and retirees are the ones punished, along with any pension funds and some insurance products. It would seem ten years would be enough; perhaps when double digit inflation returns we will see some respite form 0 or negative rates, until then, bungee jumping.
A question I have is; "why would anyone with a brain be so stupid as to get involved with this"? What is the attraction? If one wants to "give" money away, how about your church, Goodwill, Salvation Army, Boy Scouts etc.? At least these organizations do not insult my intelligence the way a MM fee resulting in a loss .