Core Insights - Tianhong Yu'ebao Money Market Fund has announced a reduction in its custody fee from 0.08% to 0.07%, resulting in a decrease in the overall fee rate from 0.63% to 0.62% [1][4] - This fee reduction is part of a broader trend in the industry, with over 40 money market funds lowering fees this year, driven by a combination of declining yields and regulatory encouragement [1][4][9] Fee Reduction Details - The adjustment in Tianhong Yu'ebao's custody fee is effective from September 23, following discussions with the custodian, CITIC Bank [2][4] - Other funds, such as E Fund and Guoxin Guozheng, have also announced fee reductions, with some management fees dropping significantly [8][9] Market Context - The seven-day annualized yield of Tianhong Yu'ebao has reached a historical low of 1.0200% as of September 22, 2023, reflecting a downward trend in yields across the market [7][10] - The average seven-day annualized yield for all money market funds is currently at 1.12%, with a notable number of funds yielding below 1% [10] Regulatory Influence - Regulatory bodies are pushing for fee reductions in large-scale index and money market funds, which is expected to lead to further adjustments in management and custody fees [4][11] - The China Securities Regulatory Commission has proposed lowering the sales service fee for money market funds, indicating a trend towards reduced costs for investors [4][11] Future Yield Outlook - The current monetary policy is expected to remain accommodative, limiting the potential for significant increases in money market fund yields in the near term [11] - Future yield movements will likely depend on central bank actions regarding key policy rates, with limited room for downward adjustments in short-term asset yields [11]