Earlier this week, S&P published "European & Offshore 'AAAm' Rated Fund Indices (as of July 31, 2008)," a summary of Euro, Pound Sterling and US Dollar yield averages, asset totals, and portfolio statistics. S&P's numbers show flat yields and record assets for Dollar and Pound funds, and rising yields and falling assets for Euro funds in July 2008.

S&P's 'AAAm' European and Offshore EUR Index showed a 7-Day Yield of 4.44%, a 30-Day Yield of 4.37%, an Average Maturity of 28 days, assets of E97.37 billion, and a Credit Quality of 83% A-1+/17% A-1 as of July 31. S&P's 'AAAm' GBP Index showed a 7-Day Yield of 5.25%, a 30-Day Yield of 5.32%, an Average Maturity of 36 days, assets of L66.66 billion, and a Credit Quality of 80% A-1+/20% A-1. S&P's 'AAAm' USD Index showed a 7-Day Yield of 2.27%, a 30-Day Yield of 2.27%, an Average Maturity of 35 days, assets of $350.66 billion, and a Credit Quality of 86% A-1+/14% A-1. "Standard & Poor's Offshore Principal Stability Fund indices are performance indicators of offshore 'AAAm' rated funds that maintain either a stable or constantly rising net asset value," says the report.

S&P's update says, "In a reverse trend to that of June 2008, euro-denominated 'AAAm' rated principal stability funds experienced a slight drop in their net assets, dipping below E100 billion, with a negative 3.8% decrease. Dollar and sterling-denominated funds enjoyed substantial inflows for the month of July with sterling-denominated 'AAAm' rated funds, experiencing their greatest inflow of assets since April 2007 with a 10.65% increase for the month, equating to more than a L6 billion inflow. Net assets continue to be at historical highs and funds are expected to continue substantial growth throughout the remainder of 2008.

Finally, S&P says, "Investment managers are continuing to operate very conservative mandates overnight liquidity, still at the fore. On average, rated 'AAAm' funds have been operating with 20%-25% in overnight cash deposits and weighted average maturities are well within Standard & Poor's Ratings Services' fund rating guidelines of 60 days. The credit quality of funds remained above historical levels, despite a slight fall in the percentage of euro funds holding Standard & Poor's rated 'A-1+' securities."

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