MMF Assets Rise for 3rd Week
Money fund assets increased for the third straight week, up $5.7 billion, according to the latest weekly "Money Market Fund Assets" report. ICI says, "Total money market fund assets increased by $5.67 billion to $2.71 trillion for the week ended Wednesday, May 11, the Investment Company Institute reported today. Among taxable money market funds, government funds decreased by $1.37 billion and prime funds increased by $9.66 billion. Tax-exempt money market funds decreased by $2.61 billion." Government assets, including Institutional and Retail (and Treasury and Government), now stand at $1.316 trillion, while Prime assets are at $1.185 trillion. Government fund assets moved ahead of Prime assets earlier this year, fueled by the conversion of $242.1 billion of Prime funds to Govt funds to date (through May 2). The release continues, "Assets of retail money market funds decreased by $2.41 billion to $974.83 billion. Among retail funds, government money market fund assets decreased by $2.62 billion to $396.06 billion, prime money market fund assets increased by $1.98 billion to $413.54 billion, and tax-exempt fund assets decreased by $1.77 billion to $165.23 billion." It adds, "Assets of institutional money market funds increased by $8.08 billion to $1.74 trillion. Among institutional funds, government money market fund assets increased by $1.25 billion to $920.14 billion, prime money market fund assets increased by $7.67 billion to $771.90 billion, and tax-exempt fund assets decreased by $840 million to $48.07 billion." Year-to-date through May 11, MMF assets are down $44 billion with Inst assets down $80 billion and Retail assets up $36 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, Fitch issued a press release, "Fitch Withdraws BofA Money Market Funds' Ratings." It says, "Fitch Ratings has withdrawn the ratings of the following five money market funds managed by BofA Global Capital Management: BofA Government Plus Reserves, BofA Government Reserves, BofA Money Market Reserves, BofA Municipal Reserves, BofA Treasury Reserves. All of the funds were rated 'AAAmmf' prior to the withdrawal. Fitch is withdrawing the ratings of the five money funds as they no longer exist. BofA Municipal Reserves was liquidated and the remaining funds were merged into money funds managed by Blackrock Advisors, LLC, following the acquisition of the Bank of America money-market fund business by Blackrock. Accordingly, Fitch will no longer provide ratings or analytical coverage for the funds."
