Money Fund Assets Rise Again
Money fund assets increased for the fifth straight week, according to ICI's latest weekly "Money Market Fund Assets" report. It says, "Total money market fund assets increased by $14.21 billion to $2.73 trillion for the week ended Wednesday, May 25, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $17.96 billion and prime funds decreased by $1.44 billion. Tax-exempt money market funds decreased by $2.32 billion." Government assets, including Institutional and Retail (and Treasury and Government), now stand at $1.355 trillion, while Prime assets are at $1.169 trillion. Government fund assets moved ahead of Prime assets earlier this year, fueled by the conversion of $242.1 billion of Prime funds to Govt funds to date (through May 2). The release continues, "Assets of retail money market funds decreased by $3.14 billion to $971.36 billion. Among retail funds, government money market fund assets increased by $1.84 billion to $405.89 billion, prime money market fund assets decreased by $3.42 billion to $402.93 billion, and tax-exempt fund assets decreased by $1.56 billion to $162.54 billion." It adds, "Assets of institutional money market funds increased by $17.34 billion to $1.76 trillion. Among institutional funds, government money market fund assets increased by $16.12 billion to $948.64 billion, prime money market fund assets increased by $1.99 billion to $765.85 billion, and tax-exempt fund assets decreased by $760 million to $47.58 billion." Year-to-date through May 25, MMF assets are down about $26 billion with Inst assets down $58 billion and Retail assets up $33 billion. A Footnote to ICI's release adds, "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."
