ICI MF Assets; Fannie/Freddie FAQ
The Investment Company Institute says money market mutual fund assets declined by $4.08 billion to $3.582 trillion in the week ended Sept. 10. ICI's money fund series shows retail money funds increased $1.54 billion to $1.236 trillion while institutional money funds decreased by $5.62 billion to $2.346 trillion. ICI also just posted "Frequently Asked Questions About U.S. Takeover of Fannie Mae and Freddie Mac," which asks and answers, "How will the government's takeover of Fannie Mae and Freddie Mac affect mutual fund shareholders? Shareholders in money market funds and bond funds may benefit, because the Treasury Department's action will make funds' investments in the mortgage giants' bonds and other debt securities more secure." It also Q&A's, "Will the debt of Fannie and Freddie remain qualified for money market fund investments? Yes, so long as the companies' credit ratings are not reduced. That's not likely. Even before the takeover, Fannie's and Freddie's paper was rated highly enough to qualify as investments for money market funds."
