Money Fund Assets Plummet
The Investment Company Institute released its latest weekly "Money Market Fund Assets" report yesterday. It shows a huge drop in money fund assets. (Our MFI Daily, which wasn't published Wednesday due to the Bush Memorial Day, showed a decline of $50.3 billion on Tuesday, Dec. 4, but an increase of $63.3 billion yesterday. We're guessing the outflows were related to the market closing Wednesday.) ICI's latest assets series shows MMFs plunging after 6 straight weeks of strong gains. Government assets plunged, while Prime and Tax Exempt MMFs increased. Overall assets are now up $71 billion, or 2.5%, YTD, and they've increased by $102 billion, or 3.6%, over 52 weeks. Retail MMFs have increased by $103 billion, or 10.1%, while Inst MMFs are down $31 billion, or -1.7%, YTD. Over 52 weeks, Retail money funds have gained $120 billion, or 12.1%, while Inst money funds are down $18 billion, or -1.0%. ICI writes, "Total money market fund assets decreased by $34.50 billion to $2.91 trillion for the six-day period ended Tuesday, December 4, the Investment Company Institute reported today. Among taxable money market funds, government funds decreased by $40.45 billion and prime funds increased by $4.21 billion. Tax-exempt money market funds increased by $1.74 billion." Total Government MMF assets, which include Treasury funds too, stand at $2.217 trillion (76.2% of all money funds), while Total Prime MMFs stand at $548.0 billion (19.0%). Tax Exempt MMFs total $138.5 billion, or 4.8%. They explain, "Assets of retail money market funds decreased by $3.27 billion to $1.12 trillion. Among retail funds, government money market fund assets decreased by $7.78 billion to $658.29 billion, prime money market fund assets increased by $2.85 billion to $326.47 billion, and tax-exempt fund assets increased by $1.66 billion to $131.77 billion." Retail assets account for over a third of total assets, or 38.4%, and Government Retail assets make up 59.0% of all Retail MMFs. ICI's release adds, "Assets of institutional money market funds decreased by $31.23 billion to $1.79 trillion. Among institutional funds, government money market fund assets decreased by $32.67 billion to $1.56 trillion, prime money market fund assets increased by $1.36 billion to $225.75 billion, and tax-exempt fund assets increased by $78 million to $8.45 billion." Institutional assets account for 61.6% of all MMF assets, with Government Inst assets making up 86.9% of all Institutional MMFs.
