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What Me Worry? Investors Drive Money Fund Assets Beyond $3 Trillion. Institutional and retail investors continue to ignore a paranoid press, pushing money market mutual fund assets solidly above $3 trillion to a new record high. The Investment Company Institute reports that money fund assets increased by $24.74 billion to $3.025 trillion in the week ended Nov. 14. Institutions continue to fuel the surge, adding $17.23 billion to funds to hit a record $1.921 trillion. But retail investors also joined the party, adding $7.51 billion to funds to hit a record $1.105 trillion. Over the past 52 weeks, institutional assets have risen by an astounding $577 billion, or 42.9%, while retail assets have risen by a respectable $161 billion, or 17.0%. Investors continue to be unfazed by recent problems with structured investment vehicles (SIVs), by August's asset-backed commercial paper seizure, and by a handful of bailouts and small losses in enhanced cash funds. Quarterly tax outflows could temporarily halt the advance next week, but even greater concerns over investments with true subprime and mortgage exposure should keep pushing assets towards the safety of money funds.
