MMFs Assets Rebound in Latest Week
Money fund assets increased $13.9 billion last week, breaking a 3 week skid. ICI's latest "Money Market Fund Assets" release says, "Total money market fund assets increased by $13.85 billion to $2.77 trillion for the week ended Wednesday, March 30, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $19.80 billion and prime funds decreased by $2.69 billion. Tax-exempt money market funds decreased by $3.26 billion." Government assets, including Institutional and Retail (and Treasury and Government), stand at $1.290 trillion, while Prime assets are at $1.248 trillion. Government fund assets moved ahead of Prime assets for the first time earlier this year fueled by the conversion of over $211.9 billion since November that has converted from Prime to Govt MMFs. Another $76.0 billion is scheduled to switch over before the October 14 MMF Reform deadline. ICI's report continues, "Assets of retail money market funds decreased by $2.45 billion to $994.45 billion. Among retail funds, government money market fund assets increased by $790 million to $379.84 billion, prime money market fund assets decreased by $1.71 billion to $444.57 billion, and tax-exempt fund assets decreased by $1.53 billion to $170.04 billion." It adds, "Assets of institutional money market funds increased by $16.30 billion to $1.77 trillion. Among institutional funds, government money market fund assets increased by $19.01 billion to $909.92 billion, prime money market fund assets decreased by $980 million to $803.75 billion, and tax-exempt fund assets decreased by $1.73 billion to $57.35 billion." Year-to-date through March 30, MMF assets are up $6 billion. For the month of March, through 3/30, assets are down about $39 billion. A Footnote to ICI's release adds, "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." In other news, The Wall Street Journal reports, "BlackRock to Cut About 400 Jobs." It reads, "BlackRock Inc. is cutting about 400 jobs, or roughly 3% of its staff, as the world's largest money manager tries to streamline parts of its business and bolster areas it believes are poised for growth, according to a person familiar with the matter.... It wasn't clear which areas would be affected by the cuts." No word yet on whether money fund personnel are involved or if any cuts are related to BlackRock's pending acquisition of BofA's money fund business.
