Money-Market Funds See $10.194 Billion Inflow In Week Ended Tuesday
NEW YORK -(Dow Jones)- Investors put in roughly $10.19 billion to money-market funds during the week ended Tuesday, leaving total net assets at $2.228 trillion, according to the Money Fund Report newsletter, published by iMoneyNet Inc. Institutional investors were responsible for the majority of inflows, adding a net $19.15 billion, while retail investors withdrew $8.96 billion.
Peter Crane, managing editor of the newsletter, observed that consumers are continuing to filter out of money funds because of low yields. On the other hand, Crane sees more institutional money flowing into the funds as the market adjusts to the prospect of no rate hikes for the foreseeable future.
Assets in taxable money funds grew to $1.964 trillion after inflows of $10.43 billion, the report said. Institutional investors contributed $19.04 billion to taxable funds while retail investors took out $8.60 billion.
The average seven-day simple yield for taxable funds stayed flat at 1.34%, the newsletter reported, while average seven-day compound yields were unchanged at 1.35%. Thirty-day simple yields dipped to 1.35% and 30-day compound yields inched down to 1.36% from 1.37%. Compound yields assume reinvestment of dividends.
Average maturity of the investments of taxable funds, which include commercial paper (short-term corporate IOUs) and Treasury bills, stayed at 57 days.
The highest seven-day compound yield among retail taxable general-purpose money funds belonged to PayPal Money Market Fund, at 1.95%, followed by Touchstone Money Market Fund, at 1.88%, and Bunker Hill Money Market Fund, at 1.87%
Tax-free funds saw net outflow of $245.5 million, lowering total tax-free assets to $263.18 billion. During the week, institutions added $114 million to tax-exempt funds, while retail investors took out $349 million.
Average seven-day simple yields for tax-free money market funds fell to 1.11%, from 1.14% last week, and seven-day compound yields dipped to 1.12% from 1.14%. Thirty-day simple yields rose to 1.12% from 1.09%, while compound yields rose to 1.13% from 1.09%. The average maturity of tax-free funds decreased to 33 days.
The highest seven-day compound yields among retail tax-free money market funds were Vanguard Tax-Exempt Money Market Fund, at 1.59%, followed by Vanguard Ohio Tax-Exempt Money Market Fund, at 1.54%, and Vanguard California Tax Exempt Money Market Fund at 1.53%.