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INVESTMENT COMPANY INSTITUTE REPORTS ASSETS OF MONEY MARKET MUTUAL FUNDS

 INVESTMENT COMPANY INSTITUTE REPORTS ASSETS
 OF MONEY MARKET MUTUAL FUNDS
 WASHINGTON, Sept. 3 /PRNewswire/ -- Assets of the nation's 610 retail money market mutual funds decreased by $4.24 billion to $385.74 billion for the week ended Wednesday, Sept. 2, the Investment Company Institute reported today. Assets of the 377 taxable money market funds in the retail category fell by $3.64 billion to $307.93 billion; the 233 tax-exempt funds assets decreased by $593.4 million to $77.81 billion.
 Assets of the 275 institutional money market funds decreased by $10.91 billion to $211.41 billion for the same period. Among institutional funds, the 221 taxable money market fund assets declined by $11.23 billion to $190.10 billion; assets of 54 tax exempt funds rose by $319.6 million to $21.31 billion.
 "Both individual and institutional shareholders drew down their money market fund balances quite heavily in the last reporting week. But they did it for entirely different reasons," said Dr. Jacob Dreyer, vice president and chief economist for the Institute. "As the yields offered by money market funds kept drifting downward, individuals continued being lured by appreciating bond funds. A seasonal factor also contributed to the drawdown as traditional back-to-school bunching of household expenditures caused a spike in redemptions.
 "The substantial drop of institutional money market fund assets was mainly due to interest-rate arbitrage. As the federal funds rate zoomed early in the week well above the yield available on money market fund portfolios, a sudden, and probably reversible, flow of assets out of institutional money market funds ensued," Dreyer said.
 Total money market assets stood at $597.15 billion for the week ended Wednesday, Sept. 2.
 Assets of money market mutual funds for the week ended Wednesday, Aug. 26, were revised to $612.30 billion. The revisions are due to reporting errors and changes in the number of institutional funds reporting.
 ICI reports the assets of money market funds to the Federal Reserve Board each week and makes this data available to the public on a weekly basis. The Institute also reports monthly on three broad categories of funds. They are (1) short-term funds which include tax-exempt money market funds, (2) taxable retail and institutional money market funds and (3) all funds other than money market funds -- such as stock, income, corporate bond and municipal bond funds.
 -0- 9/3/92
 /CONTACT: Malin Jennings of the Investment Company Institute, 202-955-8415/ CO: Investment Company Institute ST: District of Columbia IN: FIN SU: ECO


TW -- DC023 -- 6578 09/03/92 15:59 EDT
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Publication:PR Newswire
Date:Sep 3, 1992
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/C O R R E C T I O N -- INVESTMENT COMPANY INSTITUTE/

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