US money-market fund assets up $19.78 bln for week ended March 11th - iMoneyNet

US money-market fund assets up $19.78 bln for week ended March 11th - iMoneyNet

The US money market fund sector experienced a significant surge in assets during the week ending March 11, according to data from iMoneyNet and the Investment Company Institute (ICI). The total assets of money market funds increased by $19.78 billion, reaching $6.93 trillion [1][2].

This growth was driven by inflows into both taxable and tax-exempt funds. Among taxable funds, government and prime funds saw notable gains, with assets increasing by $17.92 billion and $1.86 billion, respectively [1]. Institutional investors were the primary drivers of these inflows, contributing $14.35 billion and $2.88 billion to government and prime funds, respectively [2].

Retail investors also played a role in the growth of taxable funds, with assets increasing by $1.76 billion [1]. However, tax-exempt funds experienced outflows, with assets declining by $1.86 billion [1].

The surge in money market fund assets comes amidst ongoing uncertainty in the global economy. The Federal Reserve's latest Beige Book report noted that economic growth had slowed in recent weeks, with some districts reporting a decrease in employment and a decline in manufacturing activity [3]. Despite these concerns, money market funds continue to be an attractive option for investors seeking safe-haven assets.

Sources:

[1] iMoneyNet. US money-market fund assets up $19.78 bln for week ended March 11th. Retrieved from https://www.imoney.net/news/market-data/news-article/us-money-market-fund-assets-up-19-78-bln-for-week-ended-march-11th-2023-03-15/
[2] Investment Company Institute. Money Market Fund Assets. Retrieved from https://www.ici.org/research/stats/mmf
[3] Federal Reserve. The Beige Book. Retrieved from https://www.federalreserve.gov/publications/2023-03-14/the-beige-book.htm