U.S. money market funds experienced substantial net inflows during the fourth quarter, rising $89.1 billion to $2.7 trillion, new research discloses.
FitchRatings, New York, reported this finding today in a special report, “U.S. MMFs: Fourth-Quarter Review and Outlook.” The report details the performance of U.S. money market funds.
The report reveals that, based on data from the Investment Company Institute, government money market funds increased by $26.9 billion (accounting for net inflows), an increase of 3.4 percent., Tax-exempt funds rose by $16.3 billion, a 5.7 percent gain. And prime funds (both institutional and retail) increased by $46 billion, up 3.2 percent.
Canada remains a desirable investment destination for U.S. MMFs. At the end of November 2012, these funds provided about $55 billion to Canadian entities split among six banks and one sovereign-related entity. The banks include the Bank of Novia Scotia, which accounts for an individual issuer exposure of 25 percent of total Canadian investments. The other banks include Royal Bank of Canada (25 percent), Bank of Montreal (22 percent), Toronto Dominion (14 percent), CIBC (8 percent), and the National Bank of Canada (3 percent).