Money Funds Continue Fall

Total money market mutual fund assets fell again last week by $3.82 billion to $3.111 trillion, according to the Investment Company Institute. Assets of retail money market mutual funds rose by $7.71 billion to $1.155 trillion, while assets of taxable money market funds in the retail category rose by $5.10 billion to $875.89 billion. Tax-exempt fund assets rose by $2.61 billion to $279.46 billion. Money Fund Report, a service of iMoneyNet Inc., reported that the seven-day average yield on money market mutual funds fell from 4.08% to 3.99% in the week ending Dec. 25, while the 30-day average yield fell from 4.14% to 4.09%. The seven-day compounded yield fell from 4.16% to 4.07% and the 30-day compounded yield fell from 4.23% to 4.18%. Money Fund said the average maturity of portfolios held by mutual funds was unchanged at 40 days.