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INVESTMENT COMPANY INSTITUTE REPORTS ON ASSETS OF MONEY MARKET MUTUAL FUNDS

 WASHINGTON, April 1 /PRNewswire/ -- Assets of the 269 institutional money market funds decreased by $18.42 billion to $182.44 billion for the same period. Among institutional funds, the 219 taxable money market fund assets declined by $17.93 billion to $161.98 billion; assets of the 50 tax exempt funds dropped by $491.2 million to $20.46 billion.
 "The drop in assets of institutional funds accounted for over three quarters of the last week's overall shrinkage of money market fund assets," said Dr. Jacob Dreyer, vice president and chief economist of the Investment Company Institute. "As the Federal funds rate shot up from under 3 percent in the previous week to over 4 percent last Wednesday, while the yield offered by money market funds hasn't budged, massive outflows from funds into the repo markets ensued. Such sharp movements of assets in response to sharp fluctuations in the federal funds rate are pretty typical and get reversed when this rate returns to what is perceived as its normal range," Dreyer said.
 Assets of the nation's 623 retail money market mutual funds decreased by $5.65 billion to $387.69 billion for the week ended Wednesday, March 31, the Investment Company Institute reported today. Assets of the 388 taxable money market funds in the retail category fell by $4.96 billion to $305.57 billion; the 235 tax-exempt funds assets decreased by $688.5 million to $82.13 billion.
 "Individuals pulled some of their monies out of money market funds, possibly in response to the recent steepening of the yield curve and the resulting allure of returns offered by bond funds," said Dreyer.
 Total money market mutual fund assets stood at $570.13 billion for the week ended Wednesday, March 31.
 Assets of money market mutual funds for the week ended Wednesday (3/24) were revised to $594.20 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- 4/1/93
 /CONTACT: Malin Jennings of the Investment Company Institute, 202-955-8415/


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

DC -- DC027 -- 2273 04/01/93 17:28 EST
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Publication:PR Newswire
Date:Apr 1, 1993
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