Prime MMFs Show First Gain in 10 Wks
ICI's latest "Money Market Fund Assets" report shows Prime assets increasing for the first time in 10 weeks. The release says, "Total money market fund assets increased by $19.48 billion to $2.72 trillion for the week ended Wednesday, July 13, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $14.98 billion and prime funds increased by $12.13 billion. Tax-exempt money market funds decreased by $7.63 billion." Government assets, including Institutional and Retail (and Treasury and Government), stand at $1.494 trillion, while Prime assets are at $1.038 trillion. Government fund assets moved ahead of Prime assets earlier this year, fueled by the conversion (or liquidation) of over $300 billion of Prime funds to Govt funds. The release explains, "Assets of retail money market funds decreased by $1.95 billion to $954.48 billion. Among retail funds, government money market fund assets increased by $7.81 billion to $449.89 billion, prime money market fund assets decreased by $4.25 billion to $359.52 billion, and tax-exempt fund assets decreased by $5.51 billion to $145.07 billion. Assets of institutional money market funds increased by $21.44 billion to $1.77 trillion. Among institutional funds, government money market fund assets increased by $7.17 billion to $1.04 trillion, prime money market fund assets increased by $16.38 billion to $678.59 billion, and tax-exempt fund assets decreased by $2.12 billion to $43.31 billion." ICI 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." Year-to-date through July 13, money fund assets are down $39 billion, with Institutional assets down $54 billion and Retail assets up $15 billion. Prime MMF assets have declined by $245.7 billion YTD (-19.1%) and have declined by $420.3 billion (-28.8%) since 10/31/15 (when the first of the large Prime-to-Govie conversions began). Government MMFs assets have increased by $272.9B (22.4%) YTD and have increased by $480.1B (47.4%) since 10/31.
