MMF Assets Rebound, Big Gains in Oct
Money market fund bounced back this week as assets increased, according to ICI's latest "Money Market Fund Assets" report. The release says, "Total money market fund assets increased by $12.82 billion to $2.62 trillion for the week ended Wednesday, October 22, the Investment Company Institute reported today. Among taxable money market funds, Treasury funds (including agency and repo) increased by $3.75 billion and prime funds increased by $9.41 billion. Tax-exempt money market funds decreased by $340 million. Assets of retail money market funds increased by $6.64 billion to $915.36 billion. Among retail funds, Treasury money market fund assets increased by $2.76 billion to $205.10 billion, prime money market fund assets increased by $3.73 billion to $524.86 billion, and tax-exempt fund assets increased by $150 million to $185.41 billion. Assets of institutional money market funds increased by $6.17 billion to $1.71 trillion. Among institutional funds, Treasury money market fund assets increased by $990 million to $756.19 billion, prime money market fund assets increased by $5.67 billion to $880.57 billion, and tax-exempt fund assets decreased by $490 million to $69.97 billion." The previous week, MMF assets dropped $21.9 billion. However, month to date through Oct. 22, money fund assets have increased $73.6 billion, according to Crane's Money Fund Intelligence Daily. In other news, the Boston Globe did a follow up article to their piece last Sunday "Fidelity fought Washington over money market funds -- and won." (See our October 20 Link of the Day, "Globe on Fidelity MMF Lobbying.) In "Elizabeth Warren's Silence Was Fidelity's Gain," the Globe says, "In a statement to the Globe, Warren's office said the SEC rules were "an important first step" and stressed a need to "balance the risks that money market funds can pose to the economy against the need to maintain money market funds as an important investment alternative."
