ICI's latest weekly "Money Market Mutual Fund Assets" report says, "Total money market mutual fund assets increased by $6.13 billion to $2.652 trillion for the week ended Wednesday, November 30, the Investment Company Institute reported today. Taxable government funds increased by $23.06 billion, taxable non-government funds decreased by $14.80 billion, and tax-exempt funds decreased by $2.12 billion." Money fund assets have risen by $30 billion over the past 4 weeks, reducing their year-to-date in 2011 to $158 billion, or 5.6%.
ICI writes, "Assets of retail money market funds decreased by $910 million to $930.60 billion. Taxable government money market fund assets in the retail category increased by $720 million to $197.02 billion, taxable non-government money market fund assets decreased by $760 million to $542.24 billion, and tax-exempt fund assets decreased by $870 million to $191.33 billion." Retail money fund assets have declined by $5 billion over the past 4 weeks, but this segment has only declined by $14 billion, or 1.4%, YTD.
In the latest week, the Institute says, "Assets of institutional money market funds increased by $7.04 billion to $1.722 trillion. Among institutional funds, taxable government money market fund assets increased by $22.34 billion to $737.32 billion, taxable non-government money market fund assets decreased by $14.04 billion to $891.95 billion, and tax-exempt fund assets decreased by $1.25 billion to $92.59 billion." Institutional funds, led by Government funds, have increased by $35 billion since the week ended Nov. 2, but Institutional money fund assets have declined by $143 billion, or 7.7%, YTD.
In November, Government Institutional fund assets (including Treasury funds) increased by $38.6 billion, while Non-Government ("Prime") Institutional assets declined by $1.4 billion. Year-to-date, Government fund assets (both Retail and Institutional) have increased by $80.8 billion (9.5%), while Prime fund assets have declined by $200 billion (-12.2%). Tax-Exempt money funds have also seen noticeable declines in 2011, dropping $45.6 billion, or 13.8%. Money funds' YTD asset decline of 5.6%, if it holds, will rank as the sixth largest percentage decline in MMFs' 40-year history. (The biggest percentage decline was 1983's -18.4%, followed by 2010's -14.7%, 2009's -14.0%, 2003's -9.7%, and 2004's -6.8%.)
Their latest weekly explains, "ICI reports money market fund assets to the Federal Reserve each week. Revisions are due to data adjustments, reclassifications, and changes in the number of funds reporting. Historical weekly money market data back to January 2008 are available on the ICI website." (Crane Data also has money fund assets series, but ICI's is the broadest collection available.)
In other news, we mentioned the downgrade of minor money fund holding Eksportfinans in our Nov. 25 "Link of the Day: 'Norway's Eksportfinans Cut to Junk by Moody's Amid Wind Down' writes Bloomberg". A couple more mentioned have surfaced -- Bloomberg's "Moody's Wrong to Reduce Eksportfinans to Junk, Norway Says" and First American's statement "Eksportfinans Holding in First American Prime Obligations Fund Sold".
Bloomberg's latest piece writes, "A decision by Moody's Investors Service to cut Norway's Eksportfinans ASA seven steps to junk betrays a lack of analysis and doesn't reflect the state-backed unit's ability to pay its debts, Trade Minister Trond Giske said." First American's latest update says, "`On November 28, 2011, First American Funds sold a $12.7 million holding in Eksportfinans that was originally scheduled to mature on December 15. As previously communicated, the remaining $50 million position will mature on December 6, 2011. We will continue to monitor the security and scheduled payment for any changes."
