Money market mutual fund assets increased by $34.4 billion to a record $3.808 trillion in the week ended Wednesday, according to the Investment Company Institute's latest figures. Assets have surged by $351.8 billion, or 10.2%, over the past 12 weeks, following a decline $129.2 billion, or 3.6% in the four weeks prior, which included outflows related to the the Sept. 16 "breaking of the buck" by Reserve Primary Fund.
Year-to-date in 2008, money market mutual fund assets have increased by $663.5 billion, or 21.1%. Over the past two years, assets have increased by a mindblowing $1.426 trillion, or 59.9%. Money market mutual funds now account for approximately 40% of all mutual fund assets, based on ICI's October total fund base of $9.600 trillion. Institutional assets have fueled the massive buildup, now accounting for a record high 2/3 (66.4%) of overall money funds assets
Prime Institutional money funds regained their status as the largest piece of the money fund pie, rising $34.1 billion, or 3.0%, in the latest week to $1.173 trillion. Prime Inst funds have increased assets for 7 straight weeks and for 10 out of the last 11 weeks. They've increased $120.2 billion, or 11.4%, over the past 12 weeks following a precipitous 4-week decline of $398.8 billion (down 27.5%) in September. Overall Institutional money fund assets increased by $36.2 billion to $2.527 trillion.
Government Institutional funds, including Treasury Institutional funds, increased by $2.4 billion to $1.170 trillion, following a decline of $7.7 billion last week. Government & Treasury Institutional funds have risen by $193.0 billion, or 19.8%, over the past 12 weeks, and they have risen by a monstrous $477.2 billion, or 69.2%, since Sept. 3. But recent outflows from Treasury funds have halted the sharp rise in this series. (Though ICI doesn't break out Treasury assets from the Government category, Crane Data's Money Fund Intelligence Daily shows Treasury Institutional fund assets decreasing $18.3 billion in the week through Dec. 23.) Tax Exempt Institutional money fund assets decreased by $342 million to $184.3 billion.
Retail money fund assets decreased by $1.75 billion to $1.282 trillion. General Purpose ("Prime") Retail assets increased by $572 million to $720.1 billion. Government Retail assets fell by $1.6 billion to $264.4 billion, while Tax Exempt Retail assets fell by $719 million to $297.2 billion. Retail assets have increased a "mere" $47.1 billion, or 3.8%, since early September with an increase in Government funds and modest outflows from Prime and Tax Exempt funds.
