While overall mutual fund assets declined in July, money market mutual funds continued to be the bright spot in the fund business. Money fund assets increased by $85.1 billion, or 2.5%, in July to a record $3.487 trillion, according to the Investment Company Institute's monthly "Trends in Mutual Fund Investing". Taxable money funds rose 2.8% to $2.986 trillion while Tax-Free funds rose 0.5% to $496.6 billion. Year-to-date through July 31, money fund assets increased by $380.2 billion, or 12.2%, while total mutual fund assets declined by $433.3 billion, or 3.6%.

In ICI's latest (separate) weekly series, money fund assets decreased by $625 million to $3.573 trillion in the week ended August 27. Month-to-date in August, money funds have increased by about $44 billion. They remain just below their record level of $3.575 trillion, set two weeks ago. Year-to-date figures through this week show money funds up by $428 billion, or 13.6%, and over 52 weeks funds have increased by a whopping $810 billion, or 29.3%.

ICI also released its "Month-End Portfolio Holdings of Taxable Money Market Funds," which shows big increases in Commercial Paper (up $36.8 billion, or 5.2%, to $751.2 billion), U.S. Government Agency Securities (up $28.3 billion, or 7.5%, to $405.1 billion), U.S. Treasury Bills (up $12.7 billion, or 6.0%, to $225.4 billion), and Bank Notes (up $10.8 billion, or 11.3%, to $106.9 billion). Declines were seen in Corporate Notes (down $14.3 billion, or 4.7%, to $290.4 billion), Other Treasury Securities (down $3.36 billion, or 5.6%, to $56.8 billion), and Repo (down $808 million, or 0.2%, to $535.8 billion). Corporate notes likely declined partially due the final runoff of a number of SIV-related medium-term notes (MTNs) during July.

CP remains the largest percentage of money fund holdings, representing 25.1% of assets. (ABCP makes up 43.5% of total CP, according to the latest Federal Reserve figures.) Repo is second with 17.9%, Agencies are third with 13.6%, and CD are fourth with 10.6%. Corporate notes (9.7%), T-Bills (7.5%), Other (4.9%), Eurodollar CDs (5.0%), Bank Notes (3.6%), Other Treasury Securities (1.9%), and Banker's Acceptances (0.1%) round out the totals as of July 31, 2008.

Email This Article




Use a comma or a semicolon to separate

captcha image

Money Market News Archive

2024
March
February
January
2023
December
November
October
September
August
July
June
May
April
March
February
January
2022
December
November
October
September
August
July
June
May
April
March
February
January
2021
December
November
October
September
August
July
June
May
April
March
February
January
2020
December
November
October
September
August
July
June
May
April
March
February
January
2019
December
November
October
September
August
July
June
May
April
March
February
January
2018
December
November
October
September
August
July
June
May
April
March
February
January
2017
December
November
October
September
August
July
June
May
April
March
February
January
2016
December
November
October
September
August
July
June
May
April
March
February
January
2015
December
November
October
September
August
July
June
May
April
March
February
January
2014
December
November
October
September
August
July
June
May
April
March
February
January
2013
December
November
October
September
August
July
June
May
April
March
February
January
2012
December
November
October
September
August
July
June
May
April
March
February
January
2011
December
November
October
September
August
July
June
May
April
March
February
January
2010
December
November
October
September
August
July
June
May
April
March
February
January
2009
December
November
October
September
August
July
June
May
April
March
February
January
2008
December
November
October
September
August
July
June
May
April
March
February
January
2007
December
November
October
September
August
July
June
May
April
March
February
January
2006
December
November
October
September