Money fund assets fell by $10.63 billion to $2.803 trillion in latest week

Friday, September 24, 2010

Money fund assets fell to $2.803T in latest week

NEW YORK — Total money market mutual fund assets fell $10.63 billion to $2.803 trillion for the week, the Investment Company Institute said Thursday.

Assets of the nation’s retail money market mutual funds fell $6.36 billion in the latest week to $958.21 billion.

Assets of taxable money market funds in the retail category decreased by $4.63 billion to $753.97 billion for the week ended Wednesday, the Washington-based mutual fund trade group said. Retail tax-exempt fund assets fell $1.73 billion to $204.24 billion.

Assets of institutional money market funds fell $4.26 billion to $1.845 trillion for the same period. Among institutional funds, taxable money market fund assets decreased by $4.47 billion to $1.718 trillion; assets of institutional tax-exempt funds increased by $210 million to $127.29 billion.

The seven-day average yield on taxable money market mutual funds in the week ended Tuesday remained at 0.04 percent for the 14th week in a row, said Money Fund Report, a service of iMoneyNet Inc. in Westboro, Mass. The 30-day average yield was also flat at 0.04 percent, according to Money Fund Report.

The seven-day and 30-day compounded yields were both unchanged at 0.04 percent, Money Fund Report said. The average maturity of the portfolios held by money funds increased to 45 days from 44 days the previous week.

The online service said its survey of 100 leading commercial banks, savings and loan associations and savings banks in the nation’s 10 largest markets showed the annual percentage yield available on money market accounts was unchanged from the previous week at 0.19 percent.

The North Palm Beach, Fla.-based unit of Bankrate Inc. said the annual percentage yield available on interest-bearing checking accounts also remained flat at 0.11 percent. said the annual percentage yield on six-month certificates of deposit dipped to 0.33 percent from 0.34 percent last week. Yields on one-year CDs fell to 0.58 percent from 0.60 percent the previous week; dropped to 0.85 percent from 0.86 percent on 2 and a half year CDs; and fell to 1.70 percent from 1.71 percent on five-year CDs.

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