ICI's latest "Money Market Fund Assets" shows yet another week of asset gains and it reflects a huge shift of assets from Prime to Government money funds as the largest money market fund, Fidelity Cash Reserves at $115 billion, is reclassified. Money fund assets increased for the 9th week out of the past 11, and YTD assets are now positive for the first time in 2015. (Assets are up just $8 billion, or 0.3%, mirroring a pattern of flat to very modest gains the past 4 years in a row.) The release says, "Total money market fund assets increased by $17.82 billion to $2.74 trillion for the eight-day period ended Wednesday, December 2, the Investment Company Institute reported today. Among taxable money market funds, government funds (including agency and repo) increased by $140.27 billion and prime funds decreased by $126.32 billion. Tax-exempt money market funds increased by $3.87 billion. Assets of retail money market funds decreased by $1.12 billion to $892.23 billion. Among retail funds, government money market fund assets increased by $119.17 billion to $336.95 billion, prime money market fund assets decreased by $121.76 billion to $375.22 billion, and tax-exempt fund assets increased by $1.47 billion to $180.06 billion." It continues, "Assets of institutional money market funds increased by $18.94 billion to $1.85 trillion. Among institutional funds, government money market fund assets increased by $21.09 billion to $875.12 billion, prime money market fund assets decreased by $4.56 billion to $903.87 billion, and tax-exempt fund assets increased by $2.40 billion to $70.16 billion." ICI also notes, "In anticipation of the Securities and Exchange Commission's (SEC) new money market fund regulations, many advisers are changing their prime money market funds into government money market funds. As a result, there have been, and will continue to be, large shifts in assets from prime funds to government funds before the October 2016 deadline. For more information about the SEC's new money market fund rules, read our recent ICI Viewpoints." Fidelity Cash Reserves became Fidelity Government Cash Reserves; Fidelity MMT: Retirement became Fidelity MMT: Govt MMP II; and American Century Premium became American Century US Govt MM Inv, all on Dec. 1. Look for more details and coverage on asset flows and the Prime to Govt shift in our December Money Fund Intelligence, which ships to subscribers Monday morning.

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