From Rated Money Fund Report™: The ranks of AAA-rated Prime Institutional and Tax-Free National Institutional funds have been significantly thinned during the past year, as money-market-fund rule changes forcing them to adopt floating net asset values in place of structures permitting use of target $1.00 per share values became reality.
iMoneyNet data showed that 112 top-rated Prime Institutional funds reported total assets of $79.48 billion as of Dec. 6. That was down by 61 funds in the category and $628.35 billion or by 88.8 percent since the December 2015 issue of Rated Money Fund Report™. iMoneyNet reported that weekly assets for all 129 Prime Institutional funds, which operated as FNAV funds by Oct. 14, sat at $125.05 billion. The rated funds accounted for 63.6 percent of that total.
The impact on the number of funds being offered to institutional investors and their total invested assets in national tax-free funds was more severe. Only 19 of 82 top-rated Tax-Free National Institutional funds remain from what was reported for the category in last year’s numbers. Total assets of $4.70 billion as of Dec. 5 revealed a 91.4 percent decline from the $54.92 billion December 2015 asset levels. Every Tax-Free National Institutional fund reported to iMoneyNet carries at least one AAA rating from a major rating agency.
The latest seven-day simple yields reported for the 20 top-yielding rated Prime Institutional funds, with the exception of two funds, easily outperformed the 0.34 percent rated category weekly average. Likewise, two of the top 10 funds fell below the 0.30 percent seven-day yield average for rated Tax-Free National Institutional funds.