Prime assets fell broke below the $800 billion level, their lowest level in almost 20 years (since 1997). ICI's latest "Money Market Fund Assets" report shows MMFs overall decreasing $29.5 billion in the latest week. Prime funds fell $37.3 billion after falling $54.1 billion last week; they've declined in 14 out of the past 15 weeks (-$374.8B) and have averaged outflows of $25.0 billion a week since June 1. Government funds gained just $9.2 billion in the past week. Since Oct. 29, 2015, Prime assets have fallen by a massive $669.1 billion, or 45.9%. Govt MMFs have increased by $741.5 billion during this same time (up 73.2%) while Tax Exempt MMFs have fallen by $94.6 billion (-38.6%). YTD in 2016, Prime MMFs are down by $494.5 billion, or 38.5% while Govt MMFs are up by $534.3 billion, or 43.8%. Over the past 6 weeks, Prime MMFs have fallen by 200.7 billion and they've fallen by 332.2 billion over the past 13 weeks. (Govt MMFs have risen 213.8 billion over 6 weeks and 357.7 billion over 13 weeks.) ICI's latest release says, "Total money market fund assets decreased by $29.49 billion to $2.69 trillion for the week ended Wednesday, September 7, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $9.18 billion and prime funds decreased by $37.31 billion. Tax-exempt money market funds decreased by $1.36 billion. Assets of retail money market funds increased by $2.75 billion to $934.05 billion. Among retail funds, government money market fund assets increased by $6.98 billion to $503.62 billion, prime money market fund assets decreased by $3.08 billion to $312.82 billion, and tax-exempt fund assets decreased by $1.16 billion to $117.62 billion. Assets of institutional money market funds decreased by $32.23 billion to $1.76 trillion. Among institutional funds, government money market fund assets increased by $2.20 billion to $1.25 trillion, prime money market fund assets decreased by $34.23 billion to $476.43 billion, and tax-exempt fund assets decreased by $200 million to $32.73 billion." Government assets, including Institutional and Retail (and Treasury and Government) stand at $1.755 trillion, while Prime assets are now at $789.3 billion. The release explains, "Assets of retail money market funds decreased by $2.35 billion to $931.19 billion. Among retail funds, government money market fund assets increased by $6.00 billion to $496.51 billion, prime money market fund assets decreased by $6.17 billion to $315.90 billion, and tax-exempt fund assets decreased by $2.18 billion to $118.77 billion…. Assets of institutional money market funds decreased by $8.15 billion to $1.79 trillion. Among institutional funds, government money market fund assets increased by $42.21 billion to $1.25 trillion, prime money market fund assets decreased by $47.88 billion to $510.66 billion, and tax-exempt fund assets decreased by $2.48 billion to $32.93 billion." ICI adds, "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." Crane Data's latest Money Fund Intelligence XLS shows Prime assets lost $131 billion in August, their third worst month ever. (Prime MMFs lost 142 billion in November 2015 when Fidelity Cash Reserves converted from Prime to Government and they lost 448 billion in September 2008 when Reserve Primary Fund "broke the buck".)
