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Last week, the Federal Reserve Board of Governors released a "Statement Regarding Repurchase Agreement Arrangements," which explains, "The Federal Open Market Committee on Wednesday announced the establishment of two standing repurchase agreement (repo) facilities—a domestic standing repo facility (SRF) and a repo facility for foreign and international monetary authorities (FIMA repo facility). These facilities will serve as backstops in money markets to support the effective implementation of monetary policy and smooth market functioning. Under the SRF, the Federal Reserve will conduct daily overnight repo operations against Treasury securities, agency debt securities, and agency mortgage-backed securities, with a maximum operation size of $500 billion. The minimum bid rate for repos under the facility will be set initially at 25 basis points, somewhat above the general level of overnight interest rates. Counterparties for this facility will include primary dealers and will be expanded over time to include additional depository institutions." The release continues, "Under the FIMA repo facility, the Federal Reserve will enter into overnight repurchase agreements as needed with foreign official institutions against their holdings of Treasury securities maintained in custody at the Federal Reserve Bank of New York. The rate for this facility will be set initially at 25 basis points with a per counterparty limit of $60 billion. By creating a temporary source of dollar liquidity for FIMA account holders, the facility can help address pressures in global dollar funding markets that could otherwise affect financial market conditions in the United States." See also the Fed's "Statement Regarding Repurchase Agreements."

A release entitled, "Federated Hermes, Inc. reports second quarter 2021 earnings," tells us, "Money market assets were $429.8 billion at June 30, 2021, down $27.8 billion or 6% from $457.6 billion at June 30, 2020 and up $10.7 billion or 3% from $419.1 billion at March 31, 2021. Money market fund assets were $302.0 billion at June 30, 2021, down $42.8 billion or 12% from $344.8 billion at June 30, 2020 and up $4.8 billion or 2% from $297.2 billion at March 31, 2021.... Revenue decreased $49.7 million or 14% primarily due to an increase in voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields (voluntary yield-related fee waivers) and a decrease in revenue due to lower average money market assets. For further information on the waivers, see 'Impact of voluntary yield related fee waivers' below. These decreases were partially offset by an increase in revenue due to higher average equity and fixed-income assets. During Q2 2021, Federated Hermes derived 83% of its revenue from long-term assets (55% from equity assets, 19% from fixed-income assets and 9% from alternative/private markets and multi-asset), 16% from money market assets, and 1% from sources other than managed assets. Operating expenses decreased $34.2 million or 13% primarily due to decreased distribution expenses predominantly resulting from higher voluntary yield-related fee waivers." Federated adds, "During the three and six months ended June 30, 2020, voluntary yield-related fee waivers totaled $19.7 million and $20.1 million, respectively. These fee waivers were largely offset by related reductions in distribution expenses of $17.7 million and $18.0 million, respectively, such that the net negative pre-tax impact to Federated Hermes was $2.0 million and $2.1 million for the three and six months ended June 30, 2020, respectively. Short-term interest rates continued to hover near historic lows during Q2 2021 as technical factors at the front end of the yield curve kept yields on short-term government securities -- including repurchase agreements and Treasury bills -- just above zero. At their June Federal Open Market Committee meeting, the Federal Reserve increased the Reverse Repo Facility and the Interest on Excess Reserves rates by 5 basis points each, to 5 and 15 basis points, respectively. As a result, the negative impact on pre-tax income from minimum yield waivers on money market mutual funds and certain separate accounts may be approximately $38 million during Q3 2021. The amount of minimum yield waivers can vary based on a number of factors, including, among others, interest rates, yields, asset levels, asset flows and the ability of distributors to share in waivers. Any change in these factors can impact the amount and level of minimum yield waivers, including in a material way.... Federated Hermes will host an earnings conference call at 9 a.m. Eastern on July 30, 2021. Investors are invited to listen to the earnings teleconference by calling 877-407-0782 ... prior to the 9 a.m. start time. To listen online, go to the Investor Relations section and the Analyst Information tab of `FederatedHermes.com at least 15 minutes prior to register and join the call."

The Financial Times writes, "US Treasury market needs urgent reform, warn former policymakers." The article states, "The $22tn market for US government debt risks being rattled by frequent bouts of dysfunction that threaten global financial stability unless urgent reforms are made to enhance liquidity, according to a group of heavyweight former policymakers. A consortium that includes former US Treasury secretaries Timothy Geithner and Larry Summers as well as retired central bankers such as the Bank of England's Mervyn King on Wednesday proposed sweeping changes to how Treasuries are traded, regulated and backstopped by the Federal Reserve. Their [Group of 30] report, which was also backed by Bill Dudley, the former president of the New York Fed, and Axel Weber, the Bundesbank president turned UBS chair, said the reforms were needed to ensure the biggest, deepest and most essential bond market is able to function smoothly -- especially during periods of acute stress." The FT adds, "One such proposal is for the Fed to establish a permanent facility, which would allow eligible market participants to swap Treasuries for cash at a rate that discouraged frequent use when markets are functioning normally without causing stigma when used at times of stress. That would help to limit demands for market liquidity when it is most scarce, as investors would have an alternative to selling their holdings, the G30 said. The group said that the 'standing repo' facility was the 'single most important near-term measure' that policymakers should adopt. Along with another facility designed for foreign counterparties, it has recently been endorsed by the Fed. The US central bank began sketching out potential designs at its June policy-setting meeting."

Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of July 23, 2021) includes Holdings information from 63 money funds (down 3 funds from a week ago), which represent $1.900 trillion (down from $2.236 trillion) of the $4.949 trillion (38.4%) in total money fund assets tracked by Crane Data. (Our Weekly MFPH are e-mail only and aren't available on the website.) Our latest Weekly MFPH Composition summary again shows Government assets dominating the holdings list with Treasury totaling $944.4 billion (down from $1.035 trillion a week ago), or 49.7%, Repurchase Agreements (Repo) totaling $686.5 billion (down from $815.3 billion a week ago), or 36.1% and Government Agency securities totaling $152.6 billion (down from $198.1 billion), or 8.0%. Commercial Paper (CP) totaled $44.2 billion (up from $62.1 billion), or 2.3%. Certificates of Deposit (CDs) totaled $20.5 billion (up from $44.4 billion), or 1.1%. The Other category accounted for $31.7 billion or 1.7%, while VRDNs accounted for $20.1 billion, or 1.1%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $944.4 billion (49.7% of total holdings), Federal Reserve Bank of New York with $251.1B (13.2%), Federal Home Loan Bank with $59.9B (3.2%), Fixed Income Clearing Corp with $58.7B (3.1%), Federal Farm Credit Bank with $45.1B (2.4%), BNP Paribas with $40.6B (2.1%), RBC with $38.5B (2.0%), JP Morgan with $29.7B (1.6%), Barclays with $27.3B (1.4%) and Federal National Mortgage Association with $24.0B (1.3%). The Ten Largest Funds tracked in our latest Weekly include: Goldman Sachs FS Govt ($199.9 billion), BlackRock Lq FedFund ($178.1B), Wells Fargo Govt MM ($151.3B), Morgan Stanley Inst Liq Govt ($134.1B), Federated Hermes Govt ObI ($125.8B), BlackRock Lq T-Fund ($116.8B), BlackRock Lq Treas Tr ($109.1B), Goldman Sachs FS Treas Instruments ($95.2B), First American Govt Oblg ($87.7B) and State Street Inst US Govt ($85.3B). (See our July 13 News, "July MF Portfolio Holdings: Repo Surge Again on RRP; T-Bills Plunge" for more, and let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary, or our Bond Fund Portfolio Holdings data series.)

First American Funds' "Quarterly Portfolio Manager Commentary" talks about "major factors influencing money market funds this quarter." They write, "The second quarter of 2021 continued on a positive tone with COVID-19 vaccinations gaining momentum, strong economic data and overall market optimism continuing to spread. However, front-end yields remained challenged as technical forces pushed additional cash into the system coupled with the FOMC's stimulative monetary policy. The money market industry remained flush with cash while U.S. Treasury bill and Repo levels remained entrenched at the bottom of the FOMC's fed funds rate target. The Fed made key technical adjustments to the IOER and RRP, providing five bps of rate relief as the RRP continued to absorb excess cash with the facility nearing $1 trillion by quarter end." Discussing the First American Prime Obligations Fund,the U.S. Bancorp Asset Management PMs explain, "Credit spreads remain tight, reflecting the trading ranges and yields one should expect in the current low rate environment. Considering an uncertain regulatory backdrop, a flat yield curve and a conservative approach to cash flows, the fund was positioned with strong portfolio liquidity metrics influenced by fund shareholder makeup. Management continued to employ a heightened credit outlook maintaining positions presenting minimal credit risk to the fund's investors. Under the current market conditions, the main investment objective was to maintain liquidity and judiciously and opportunistically enhance portfolio yield based on our economic, investor cash flow, credit and interest rate outlook. We believe the credit environment and relative fund yields make the sector an appropriate short-term option for investors." On the First American Government and Treasury Funds, they comment, "Treasury and government funds continued to see inflows as monetary system cash balances grew. Treasury Bill / Note supply decreases resulting from the reduction in U.S. Treasury general account pushed Government-Sponsored Enterprise (GSE) and Treasury yields to a trading range near the bottom of the FOMC's fed funds target. Management continued to focus on securing incremental long-term yield when rangebound trading opportunities arose, seeing little downside to extension, anticipating a low yield environment for the foreseeable future. Throughout the quarter, we also capitalized on opportunities in floating-rate investments that made economic sense and felt would benefit shareholders over the securities holding period. We anticipate that investment strategy will remain constant until we near the end of the Fed accommodation cycle." Finally, they state, "In the coming quarters, yields will stay depressed as the U.S. progresses through the impacts of the COVID-19 pandemic and the FOMC's commitment to easy monetary policy. It appears the yield on non-government debt has bottomed, but supply / demand imbalances resulting from excess system liquidity could push yields marginally lower. We believe that prime money market fund yields are near a floor as pre-pandemic holdings have matured and the Fed has re-established a floor on short-term yields. The institutional and retail prime obligations funds will remain reasonable short-term investment options for investors seeking higher yields on cash positions while assuming minimal credit risk. Yields in the GSE and Treasury space will remain influenced by Fed policy and Treasury bill / note supply.... Management will continue to capitalize on investment opportunities, in all asset classes and indexes, based on domestic and global economic market data as well as changes to Fed rate expectations."

The Wall Street Journal recently wrote, "Money-Market Funds Buckled in Two Crises in a Row. Regulators Look to Fix Them Again." The article comments, "The start of the Covid-19 pandemic led to a familiar wave of stress in money-market funds, which companies and consumers use like checking accounts to store their ready cash. The Federal Reserve had to step in to keep these funds operating. It was a dysfunction that wasn't meant to happen. Several rounds of reforms globally had aimed to strengthen money-market funds after they buckled during the 2008 financial crisis. Now the Financial Stability Board, which brings together regulators from around the world, has proposed another round of changes in an attempt to minimize the likelihood that central banks ever have to step in and support markets. The FSB, which is chaired by Randal Quarles, the Fed's vice-chair for supervision, is focusing on reforms that would discourage investors from pulling out cash at times of stress, or ensure the private-sector, not taxpayers, support funds in a liquidity crisis. The latter could include requiring money funds to be backed by equity capital in the way that banks are -- although similar proposals have been rejected before. To discourage investors from running, other proposals would discount the value of shares in money funds when lots of investors all want to cash them in simultaneously." The Journal piece continues, "The rush out of prime funds in March 2020 caused a crunch in short-term corporate debt. Borrowing costs in this market rose to their highest levels since 2008, according to the President's Working Group on Financial Markets, which combines the Treasury, Securities and Exchange Commission, Federal Reserve and Commodity Futures Trading Commission.... Some money-market fund managers think any fixes are bound to fail unless broader problems are addressed concerning the ease with which they can trade short-term debts. 'Money-market funds are only part of the puzzle,' said David Callahan, head of money markets at Lombard Odier Investment Managers.'" They also quote, "J. Christopher Donahue, chief executive of Federated Hermes, a major money-market fund manager, said the Fed needs to play a part. The central bank could facilitate trading by allowing lenders to swap unwanted paper from good companies at the Fed's discount window for cash at any time, without stigma. 'It will never happen that the Fed won’t have a role when market players have a crisis,” said Mr. Donahue.'"

ICI's latest weekly "Money Market Fund Assets" report shows MMFs rebounding after six weeks of declines. The release says, "Total money market fund assets1 increased by $7.16 billion to $4.49 trillion for the week ended Wednesday, July 21, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $9.22 billion and prime funds decreased by $1.09 billion. Tax-exempt money market funds decreased by $970 million." Money fund assets are up by $190 billion, or 4.4%, year-to-date in 2021. Inst MMFs are up $288 billion (10.4%), while Retail MMFs are down $99 billion (-6.5%). ICI's stats show Institutional MMFs increasing $8.5 billion and Retail MMFs decreasing $1.3 billion in the latest week. Total Government MMF assets, including Treasury funds, were $3.914 trillion (87.2% of all money funds), while Total Prime MMFs were $480.0 billion (10.7%). Tax Exempt MMFs totaled $92.7 billion (2.1%). Over the past 52 weeks, money fund assets have decreased by $102 billion, or -2.2%, with Retail MMFs falling by $114 billion (-7.4%) and Inst MMFs rising by $13 billion (0.4%). (Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than our asset series.) ICI explains, "Assets of retail money market funds decreased by $1.31 billion to $1.43 trillion. Among retail funds, government money market fund assets increased by $734 million to $1.12 trillion, prime money market fund assets decreased by $1.56 billion to $225.55 billion, and tax-exempt fund assets decreased by $482 million to $80.40 billion." Retail assets account for just under a third of total assets, or 31.8%, and Government Retail assets make up 78.6% of all Retail MMFs. ICI adds, "Assets of institutional money market funds increased by $8.47 billion to $3.06 trillion. Among institutional funds, government money market fund assets increased by $8.48 billion to $2.79 trillion, prime money market fund assets increased by $473 million to $254.43 billion, and tax-exempt fund assets decreased by $488 million to $12.33 billion." Institutional assets accounted for 68.2% of all MMF assets, with Government Institutional assets making up 91.3% of all Institutional MMF totals.

We continue to read and quote responses to the European Securities and Markets Authority's (ESMA's) "Consultation on EU Money Market Fund Regulation - Legislative Review." Today, we cite ICI's letter. They write, "The Investment Company Institute (ICI), including ICI Global, appreciates the opportunity to provide its views on the European Securities and Markets Authority Consultation Report on EU Money Market Fund Regulation -- Legislative Review. Individuals and institutions rely on the $8.5 trillion global money market fund industry as a low cost, efficient, transparent, cash management vehicle that offers market-based rates of return.... The reform option presented in the consultation document that has the most potential for addressing ESMA and other policymakers' concerns while preserving key characteristics of money market funds is removing the tie between money market fund liquidity and fee and gate thresholds. The regulatory tie between liquidity and fee and gate thresholds made money market funds more susceptible to financial market stress in March 2020 and would likely do so in future periods of stress. ICI's data supports the conclusion that this regulatory tie was likely a dominant trigger for redemptions as opposed to the conditions or structure of the funds. On the other hand, reforms such as swing pricing or the option to eliminate constant net asset value (CNAV) funds (i.e., require all money market funds to float their net asset values (NAVs)) are reforms with significant drawbacks, ranging from potential detrimental impacts on money market funds, their investors, and the market to regulatory, structural, and operational barriers to implement." The letter continues, "ICI and its members are committed to working with international policymakers to strengthen the money market fund industry for the benefit and further protection of investors and the performance of broader financial markets and the economy more generally. Although many of our responses are mainly based on the experiences of US money market funds during the COVID-19 crisis, we hope they will still be helpful to ESMA as it considers how best to advance toward this important policy goal." On eliminating CNAV (constant NAV) funds, ICI responds, "ICI is highly skeptical that requiring all money market funds (such as retail prime in the United States and LVNAV funds in Europe) to float their NAVs would reduce risks in any meaningful way. A floating NAV did not stop heavy redemptions in March 2020 for US institutional floating NAV prime money market funds or certain European VNAV money market funds. Indeed, the other features of these funds and the nature of the short-term funding market itself still make certain money market funds susceptible to sudden, high redemption requests. First, a floating NAV does not alter investors' views about whether money market funds are low risk-investments. Under normal conditions, the shadow prices of stable (constant) NAV money market funds and the market prices of floating NAV money market funds' portfolios generally deviate very little from $1.00. This is simply a reflection of the fact that all money market funds invest in very short-term, high-quality, fixed-income securities and the price of these securities deviates little from their amortized cost value absent a large interest rate movement or credit event. Regardless of their valuation method, money market funds continue to be exposed to interest rate and credit risk. When risk intolerant investors seek to move away from certain funds or broad sectors of the markets during future crises, the transition would continue to be potentially disruptive." Finally, they comment, "Over ten years ago, ICI developed a preliminary framework for a private liquidity facility, including how it could be structured, capitalized, governed, and operated. Our framework also described many draw-backs, limitations, and challenges to creating a private liquidity facility, including its substantial initial and ongoing costs and vast regulatory complexity. In 2014, the SEC adopted different money market fund reforms, including a floating NAV requirement for all prime and tax-exempt money market funds sold to institutional investors and new fee and gate tools for all prime and tax-exempt money market funds, including retail funds. As a result of those reforms, the prime money market fund industry, including the number of prime fund sponsors, substantially shrunk.... Today, the US prime money market fund industry is vastly more concentrated -- with total net assets of $503 billion among just 26 sponsors as of April 30, 2021. Given the significant costs and other challenges of establishing a viable liquidity facility that could provide meaningful liquidity for money market funds in stress events, ICI members have indicated that they would simply stop sponsoring money market funds if membership to a liquidity facility was required."

Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of July 16, 2021) includes Holdings information from 66 money funds (up 20 funds from 2 weeks ago), which represent $2.236 trillion (up from $1.743 trillion) of the $4.949 trillion (45.2%) in total money fund assets tracked by Crane Data. (Our Weekly MFPH are e-mail only and aren't available on the website.) Our latest Weekly MFPH Composition summary again shows Government assets dominating the holdings list with Treasury totaling $1.035 trillion (up from $883.2 billion a week ago), or 46.3%, Repurchase Agreements (Repo) totaling $815.3 billion (up from $573.2 billion a week ago), or 36.5% and Government Agency securities totaling $198.1 billion (up from $140.6 billion), or 8.9%. Commercial Paper (CP) totaled $62.1 billion (up from $45.8 billion), or 2.8%. Certificates of Deposit (CDs) totaled $44.4 billion (up from $42.0 billion), or 2.0%. The Other category accounted for $57.7 billion or 2.6%, while VRDNs accounted for $23.6 billion, or 1.1%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.035 trillion (46.3% of total holdings), Federal Reserve Bank of New York with $319.9B (14.3%), Federal Home Loan Bank with $95.0B (4.2%), Fixed Income Clearing Corp with $59.2B (2.6%), BNP Paribas with $54.9B (2.5%), Federal Farm Credit Bank with $47.4B (2.1%), RBC with $40.8B (1.8%), JP Morgan with $38.9B (1.7%), Federal National Mortgage Association with $37.5B (1.7%) and Barclays with $30.2B (1.3%). The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($240.8 billion), BlackRock Lq FedFund ($180.2B), Wells Fargo Govt MM ($150.6B), Morgan Stanley Inst Liq Govt ($139.6B), Fidelity Inv MM: Govt Port ($132.8B), BlackRock Lq T-Fund ($118.3B), Dreyfus Govt Cash Mgmt ($113.2B), BlackRock Lq Treas Tr ($109.2B), JPMorgan 100% US Treas MMkt ($101.5B) and State Street Inst US Govt ($88.4B). (See our July 13 News, "July MF Portfolio Holdings: Repo Surge Again on RRP; T-​Bills Plunge" for more, and let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary, or our Bond Fund Portfolio Holdings data series.)

Wells Fargo Money Market Funds' latest "Overview, strategy, and outlook" tells us, "The hawkish lean that came out of the mid-June Federal Reserve (Fed) meeting, discussed in greater detail in the prime section below, drew a lot of attention, but the result that was least important to most observers was the most important to the money markets: the Fed's 5-basis-poin ... tweak higher to its administered rates. The Fed moved its reverse repurchase agreement (RRP) rate from 0.00% to 0.05% and its interest on excess reserves rate from 0.10% to 0.15%. In the process, it threw a lifeline to short-term investors who were faced with investing more and more of their cash at a zero yield. We had noted the increasingly dire conditions in the money markets in our past few commentaries, with Treasury bill (T-bill) supply falling, the Treasury's cash balance shrinking, and usage of the Fed's RRP facility leaping to new records each week." They write, "In the previous period of regular RRP usage from 2013 to 2018, during which rates were first set at zero before limping ahead in a gentle liftoff, usage rarely exceeded $200 billion per day except for quarter-end reporting dates, which saw bumps as high as $474 billion. Before May 2021, RRP usage had topped $400 billion only four times.... In June 2021, the lowest amount taken was $438 billion on June 3, the average for the month was $642 billion, and usage peaked at $992 billion on June 30. The vast sums placed with the Fed through the RRP represent the excess of demand over supply in the space and bode ill for the near-term outlook. The extra cash waiting to be deployed will be quickly put to work on anything that yields more than 0.05%, making 0.05% not just the Fed's floor but also the general level for short-term government investments." Wells' PMs add, "To summarize, while the bad news is that rates are pinned to the RRP level, the good news is they're pinned at 0.05% instead of zero. Call the outlook 'dire plus 5 bps.'"

BlackRock released its largest earnings and hosted its Q2'21 earnings call last week, and money funds and fee waivers were mentioned a few times. CFO Gary Shedlin comments, "Second quarter base fee and securities lending revenue of $3.8 billion was up 27% year-over-year, primarily driven by the positive impact of market beta on average AUM and strong organic base fee growth, partially offset by higher discretionary money market fee waivers, lower securities lending revenue and strategic pricing investments over the last year. Sequentially base fee and securities lending revenue was up 5%. However, our effective fee rate was down 0.3 basis points, as strong organic base fee growth driven by our higher fee active businesses and the impact of one additional day in the current quarter were more than offset by higher discretionary money market fee waivers and the impact of divergent equity beta in the quarter." He explains, "During the second quarter, we incurred approximately $165 million of gross discretionary yield support waivers driven in part by continued strong flows into our U.S. government money market funds. While the Fed's recent technical adjustments to the IOER and RRP have modestly helped, we still expect discretionary fee waivers to persist at or around current levels for the new term. However, future levels of discretionary fee waivers may also be impacted by several additional factors, including the level of AUM and funds with existing waivers, gross yields and competitive positioning." Shedlin adds, "Finally, BlackRock's cash management platform continued to grow, generating $23 billion of net inflows in the second quarter, driven by both prime and U.S. government money market funds. Despite facing net zero returns in both the U.S. and Europe, client demand for cash strategies remained strong, given the significant liquidity in the financial system and by helping clients manage their cash, we are building broader and deeper strategic relationships."

ICI's weekly "Money Market Fund Assets" report shows MMFs falling for the sixth week in a row, a decline of $132.3 billion since June 2. Their latest release says, "Total money market fund assets decreased by $30.99 billion to $4.48 trillion for the week ended Wednesday, July 14, the Investment Company Institute reported today. Among taxable money market funds, government funds decreased by $26.71 billion and prime funds decreased by $4.12 billion. Tax-exempt money market funds decreased by $167 million." Money fund assets remain up by $183 billion, or 4.2%, year-to-date in 2021. Inst MMFs are up $280 billion (10.1%), while Retail MMFs are down $97 billion (-6.4%). ICI's stats show Institutional MMFs decreasing $25.9 billion and Retail MMFs decreasing $5.1 billion in the latest week. Total Government MMF assets, including Treasury funds, were $3.905 trillion (87.2% of all money funds), while Total Prime MMFs were $481.1 billion (10.8%). Tax Exempt MMFs totaled $93.7 billion (2.1%). Over the past 52 weeks, money fund assets have decreased by $89 billion, or -1.9%, with Retail MMFs falling by $116 billion (-7.5%) and Inst MMFs rising by $27 billion (0.9%). (Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than our asset series.) ICI explains, "Assets of retail money market funds decreased by $5.05 billion to $1.43 trillion. Among retail funds, government money market fund assets decreased by $3.36 billion to $1.12 trillion, prime money market fund assets decreased by $1.51 billion to $227.12 billion, and tax-exempt fund assets decreased by $179 million to $80.88 billion." Retail assets account for just under a third of total assets, or 31.9%, and Government Retail assets make up 78.4% of all Retail MMFs. ICI adds, "Assets of institutional money market funds decreased by $25.94 billion to $3.05 trillion. Among institutional funds, government money market fund assets decreased by $23.35 billion to $2.78 trillion, prime money market fund assets decreased by $2.60 billion to $253.96 billion, and tax-exempt fund assets increased by $13 million to $12.81 billion." Institutional assets accounted for 68.1% of all MMF assets, with Government Institutional assets making up 91.3% of all Institutional MMF totals.

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