Flight-to-Safety Cash Pushes Money Fund Assets Up Despite Quarter-End. Though
money market mutual funds rose just $2.1 billion to a record $2.536 trillion in the week ended June 28 (
according to the Investment Company Institute), the fact that there
weren't quarter-end related outflows demonstrates that money funds experienced significant "flight-to-quality" inflows in the past week. (
Last year, money funds saw outflows of $
16 billion during the same week.)
Money fund assets, which have been rising at an almost 20 percent pace over the past 52 weeks (up $416 billion, or 19.6%), appear poised to step it up a notch.
Judging from recent flows, we expect to see a guargantuan asset jump in the first week of July. The first week of the new quarter normally sees big flows due to dividends, bond rollovers and a surge in balance sheet related cash.