Money funds continued their summer asset tear in the first half of August. ICI's latest "Money Market Mutual Fund Assets" report shows assets up again in the latest week. It says, "Total money market fund assets increased by $5.33 billion to $2.67 trillion for the week ended Wednesday, August 12, the Investment Company Institute reported today. Among taxable money market funds, Treasury funds (including agency and repo) decreased by $3.22 billion and prime funds increased by $10.51 billion. Tax-exempt money market funds decreased by $1.96 billion. Assets of retail money market funds increased by $580 million to $876.46 billion. Among retail funds, Treasury money market fund assets increased by $390 million to $198.02 billion, prime money market fund assets increased by $800 million to $498.77 billion, and tax-exempt fund assets decreased by $610 million to $179.68 billion. Assets of institutional money market funds increased by $4.75 billion to $1.80 trillion. Among institutional funds, Treasury money market fund assets decreased by $3.61 billion to $805.15 billion, prime money market fund assets increased by $9.71 billion to $925.09 billion, and tax-exempt fund assets decreased by $1.35 billion to $67.97 billion." Year-to-date, money fund assets are now down just $58 billion, or 2.1%. Institutional assets are down just $23 billion, or 1.3%, while retail assets are down $35 billion, or 3.8%. Assets have been up 6 of the last 8 weeks, and in 10 of the last 15 weeks. Since the end of April, assets are up $92.8 billion, or 3.6%, and since June 17 MMF assets have risen $75.8 billion. (Note: A year ago, assets increased a mere $3.5 billion in the April 30-Aug. 13 timeframe.) Money fund assets are likely benefiting from banks pushing away deposits, as well as from a shift out of bond funds this summer.

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