Money fund assets fell for the fourth week in a row, their ninth decline in the past 12 weeks. ICI's weekly "Money Market Mutual Fund Assets" report says MMMFs declined by $12.07 billion to $3.581 trillion in the week ended Wednesday, August 19. This level represents a year-to-date decline of $249 billion, or 6.5%, and it marks the lowest level for MMF assets since October 2008 and almost exactly the same level as Sept. 10, 2008, the week prior to Reserve Primary Fund's "breaking the buck".
From their record level of $3.922 trillion, set January 14, 2009, money fund assets have declined by $339 billion, or 8.6%. Over the past 52 weeks, money fund assets have increased a mere $8 billion, or 0.2%. However, over the past two years (104 weeks), money funds assets remain up by a breathtaking $880 billion, or 32.6%. And assets have still more than doubled from their level of 10 years ago and have grown to more than eight times their size of 20 years ago ($428 billion at the end of 1989).
ICI's weekly release says, "Assets of retail money market funds [32.8% of total assets] decreased by $2.96 billion to $1.176 trillion. Taxable government money market fund assets in the retail category decreased by $720 million to $189.03 billion, taxable non-government money market fund assets decreased by $1.64 billion to $729.63 billion, and tax-exempt fund assets decreased by $600 million to $257.01 billion." Retail money funds have accounted for the bulk of year-to-date asset declines, falling $179 billion, or 13.2%.
It continues, "Assets of institutional money market funds decreased by $9.11 billion to $2.406 trillion [67.2% of all assets]. Among institutional funds, taxable government money market fund assets [including Treasury funds] decreased by $15.89 billion to $984.75 billion [27.5% of assets], taxable non-government [prime] money market fund assets increased by $6.01 billion to $1.234 trillion [34.5% of all assets], and tax-exempt fund assets increased by $770 million to $186.58 billion." Institutional assets have declined by $80 billion, or 3.2%, YTD.
Combined retail and institutional "prime" money fund assets, which total $1.964 billion in the latest week, have increased by $69 billion year-to-date, while total Government (including Treasury) money fund assets have fallen from $1.454 trillion as of Dec. 30, 2008, to $1.174 trillion. Tax-exempt money fund assets have declined from $489 billion to $444 billion YTD.
Over the past week, money fund yields have declined by 1 basis point (0.01%). The Crane 100 Money Fund Index, the average 7-day yield of the 100 largest taxable money funds, fell from 0.14% to 0.13%, while the broader Crane Money Fund Average fell to 0.08% from 0.09%. Our Crane Tax Exempt Money Fund Index was unchanged at 0.l4% in the week ended August 19. (See our Money Fund Intelligence Daily for daily asset totals and changes and for yield average and changes.)
