Money Funds Finally See Inflows, Gain $2 Billion

Reversing a five-week trend of outflows, tax-exempt money market funds gained $2.09 billion and finished the week ending Oct. 10 with $290.61 billion in total net assets, according to the Money Fund Report, a service of iMoneyNet.com.

The inflows followed significant outflows in recent weeks. They included $773.1 million last week, when tax-exempt funds finished with $288.52 billion; an outpouring of $2.83 billion in the week ending Sept. 26, which left the funds with $289.28 billion; and the withdrawal of $2.22 billion the week before that put the total at $292.11 billion.

The average seven-day simple yield for the 472 reporting tax-exempt funds remained at 0.01% for the sixth week in a row, while the average maturity increased one day to 34 days.

Among the 1,117 taxable money funds, $848.4 million was invested in the week ending Oct. 11, causing assets to settle at $2.315 trillion. That was a big turnaround from the previous week when investors pulled $4.71 billion fron the funds, leaving assets at $2.314 trillion.

The seven-day yield for the taxable funds remained at 0.02% for the 11th consecutive week, while the average maturity remained at 40 days.

Overall, the combined assets of the 1,589 reporting money funds gained $2.94 billion and settled with $2.605 trillion in the week ended Oct. 11, following losses of $5.48 billion the week before that left the money market funds with $2.603 trillion.

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