Money Market Fund Assets Tick Up
ICI's latest weekly "Money Market Fund Assets" report shows that MMF levels rose slightly in the latest week. The release says, "Total money market fund assets increased by $3.16 billion to $2.76 trillion for the week ended Wednesday, February 10, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $5.31 billion and prime funds increased by $2.75 billion. Tax-exempt money market funds decreased by $4.90 billion." It continues, "Assets of retail money market funds decreased by $1.44 billion to $1.02 trillion. Among retail funds, government money market fund assets increased by $2.21 billion to $369.87 billion, prime money market fund assets decreased by $1.16 billion to $467.28 billion, and tax-exempt fund assets decreased by $2.49 billion to $179.50 billion. Assets of institutional money market funds increased by $4.60 billion to $1.74 trillion. Among institutional funds, government money market fund assets increased by $3.10 billion to $868.73 billion, prime money market fund assets increased by $3.91 billion to $805.51 billion, and tax-exempt fund assets decreased by $2.41 billion to $64.36 billion." ICI 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." Year-to-date through Feb. 10, MMF assets are down $4 billion. In other news, Wells Fargo Money Market Funds released its February "Overview, Strategy, and Outlook" portfolio manager commentary. They write, "While the equity markets sold off in sympathy with overseas markets' concerns about the state of the Chinese economy, doubt about the transitory nature of the decline in commodities prices brought into question not only the timing but also the likelihood that inflation will return to the targeted 2% rate over the near term, or even medium term. And, as a result, relatively safe assets such as U.S. Treasury obligations were in great demand, leaving liftoff a distant image in the rearview mirror."
