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INVESTMENT COMPANY INSTITUTE REPORTS ASSETS OF MONEY MARKET MUTUAL FUNDS

 WASHINGTON, Jan. 14 /PRNewswire/ -- Assets of the nation's 610 retail money market mutual funds increased by $1.78 billion to $386.38 billion for the week ended Wednesday, Jan. 13, the Investment Company Institute reported today. Assets of the 379 taxable money market funds in the retail category fell by $68.7 million to $302.91 billion; the 231 tax-exempt funds assets increased by $1.85 billion to $83.47 billion.
 Assets of the 275 institutional money market funds increased by $17.27 billion to $207.90 billion for the same period. Among institutional funds, the 224 taxable money market fund assets rose by $17.21 billion to $185.39 billion; assets of the 51 tax exempt funds rose by $53.2 million to $22.52 billion.
 Total money market assets stood at $594.29 billion for the week ended Wednesday, Jan. 13.
 "The surge in money market fund assets, typical for early January, was reinforced by a fairly sharp drop in the federal funds rate -- by some 60 basis points over the week," said Dr. Jacob Dreyer, vice president and chief economist at the institute. "This drop dwarfed the modest decline in yields offered by institutional money market funds, thus making the funds more attractive. Institutional investors responded to this change in yield differential by withdrawing massive amounts of money from the repo market and pouring it into money market funds."
 "In addition, money market funds benefited from the inflow of proceeds from tax-related year-end sales of securities and redemptions of shares in long-term funds," Dreyer said. "A good deal of such sales were completed at the very end of last year and settled in the first week of January. Many investors treat money market funds, both taxable and tax-exempt, as temporary repositories for liquid assets to be reinvested in long-term instruments."
 Assets of money market mutual funds for the week ended Wednesday, Jan. 6 were revised to $575.24 billion. The revisions are due to reporting errors and a change in the number of 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- 1/14/93
 /CONTACT: John Collins of the Investment Company Institute, 202-293-7700/


CO: Investment Company Institute ST: District of Columbia IN: FIN SU:

IH -- DC028 -- 5097 01/14/93 17:43 EST
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Date:Jan 14, 1993
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