BlackRock's BIF AZ Municipal Money Fund (CAZXX), BIF FL Municipal MF (CFLXX), and BIF NC Municipal MF (MNCXX) are the latest and likely the last money funds to liquidate in 2012. (The BIF funds are the former Merrill Lynch CMA money funds.) The State Tax Exempt Money Fund segment in particular has seen a slew of exits, while smaller operators too continue to withdraw from the beleaguered space. We saw the Sterling Capital money funds liquidate earlier this month, and the Pyxis money funds and some Dreyfus Municipal money funds liquidate last month. (See our last two "Consolidation" updates, Crane Data's Dec. 18 News, "Fed's Stein on Dollar Funding; Sterling Capital Liquidates MMFs" and our Nov. 13 News, "Consolidation Continues: Pyxis, Some Dreyfus Muni MFs Liquidating"). As we wrote earlier this month, Sterling Capital became the 8th fund manager tracked by Crane Data to liquidate or merge its money market funds away in 2012 (73 managers remain, several other tiny complexes that we didn't cover have liquidated too). Those falling by the wayside last year include: `MTB (merged into Wilmington), Fifth Third (merged into Federated), Victory (liquidated), Old Mutual (liquidated), Bishop Street (liquidated), Highland/Pyxis (liquidated), and TCW (liquidated).

The filing for the BIF Multi-State Municipal Series Trust, which includes BIF Arizona Municipal Money Fund, BIF Florida Municipal Money Fund, BIF North Carolina Municipal Money Fund, says in its "Supplement dated September 28, 2012 to the Prospectus and Statement of Additional Information, each dated July 27, 2012, "On September 21, 2012, the Board of Trustees of BIF Multi-State Municipal Series Trust (the "Trust") approved a proposal to close BIF Arizona Municipal Money Fund, BIF Florida Municipal Money Fund and BIF North Carolina Municipal Money Fund (each individually, a "Fund" and collectively, the "Funds") to new investors and thereafter to liquidate the Funds. Accordingly, effective 4:00 P.M. (Eastern time) on September 28, 2012, each Fund will no longer accept orders from new investors."

It adds, "On or about December 20, 2012 (the "Liquidation Date"), all of the assets of the Funds will be liquidated completely, the shares of any shareholders holding shares on the Liquidation Date will be redeemed at the net asset value per share and each Fund will then be terminated as a series of the Trust. Shareholders may redeem their Fund shares or exchange their shares into shares of another money market fund advised by BlackRock Advisors, LLC or its affiliates at any time prior to the Liquidation Date. Shareholders should consult their personal tax advisers concerning their tax situation and the impact of exchanging to a different fund on their tax situation."

Tax Exempt Money Market Funds, and particularly State funds, have been especially hard-hit by asset declines and consolidation in 2012. Through Nov. 30, according to our Money Fund Intelligence XLS monthly spreadsheet product, assets of money funds overall have declined by 2.0% (down $44.0 billion), while Tax Exempt money fund assets have declined by 6.9% (down $19.6 billion). Tax Exempt money funds now account for just 10.7% of total money fund assets, down from 11.2% at the beginning of 2012 and down from 12.2% from the end of 2010. Look for a full recap of 2012 (and prior) fund liquidations and changes in the January issue of our Money Fund Intelligence newsletter.

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