ICI's latest "Money Market Fund Assets" report shows that money fund assets dropped sharply in the first week of the year after jumping in the last week of 2015. The ICI data also shows a gigantic drop in Institutional assets and jump in Retail assets, which we assume is a major reclassification. (ICI says the switch includes the $65.5 billion Fidelity Institutional Money Market Portfolio, which stopped accepting Institutional money this month.) The release says, "Total money market fund assets decreased by $24.39 billion to $2.73 trillion for the week ended Wednesday, January 6, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $3.00 billion and prime funds decreased by $32.30 billion. Tax-exempt money market funds increased by $4.91 billion." It continues, "Assets of retail money market funds increased by $77.43 billion to $1.02 trillion. Among retail funds, government money market fund assets increased by $9.17 billion to $355.21 billion, prime money market fund assets increased by $62.46 billion to $471.09 billion, and tax-exempt fund assets increased by $5.80 billion to $190.22 billion. Assets of institutional money market funds decreased by $101.82 billion to $1.72 trillion. Among institutional funds, government money market fund assets decreased by $6.17 billion to $868.60 billion, prime money market fund assets decreased by $94.76 billion to $780.40 billion, and tax-exempt fund assets decreased by $890 million to $69.09 billion." ICI's Footnote adds, "In anticipation of the Securities and Exchange Commission's (SEC) new money market fund regulations, many advisers are changing their prime money market funds into government money market funds. As a result, there have been, and will continue to be, large shifts in assets from prime funds to government funds before the October 2016 deadline." In other news, a press release entitled "Long-Tenured Vanguard Municipal Bond Fund Manager To Retire In February 2016," tells us, "Vanguard today announced that Pamela Wisehaupt Tynan, a long-tenured municipal bond fund manager in Vanguard's Fixed Income Group, will retire at the end of February 2016. Ms. Tynan has managed the $17.3 billion Vanguard Tax-Exempt Money Market Fund and the $12.4 billion Vanguard Short-Term Tax-Exempt Fund since 1988 and 1996, respectively.... Upon Ms. Tynan's retirement in February, Justin Schwartz will assume portfolio management responsibility for Vanguard Tax-Exempt Money Market Fund and Vanguard Short-Term Tax-Exempt Fund.
