Money-Fund Yields Fell in Latest Week
April 27, 2011
NEW YORK -- Yields on money-market funds were lower in the latest week. The average seven-day compound yield on taxable funds fell to 4.91% from 4.99% in the week ended Tuesday, according to IBC's Money Fund Report, an Ashland, Mass., newsletter. Compound yields assume reinvestment of dividends. Assets of the 817 taxable funds increased by $3.37 billion to $723.5 billion. Institutional investors contributed about $3.1 billion of that amount. The average seven-day simple yield decreased to 4.79% from 4.87%. The average 30-day simple yield remained at 4.82%, the newsletter said. The average 30-day compound yield inched up to 4.94%, from 4.93%. The average maturity of the taxable funds' investments, which include commercial paper (short-term corporate IOUs) and Treasury bills, remained at 50 days. Yields on tax-free money funds were mostly unchanged. The average seven-day compound yield remained at 3.01%, in the latest week, the newsletter reported. The latest yield is equivalent to a taxable 4.70% for an investor in the 36% tax bracket and to 4.98% for someone paying 39.6% in taxes. Assets of 411 tax-exempt funds decreased by $1.17 billion in the week ended Monday, to $135.89 billion, according to Money Fund Report. The average portfolio maturity increased by one day to 51 days. IBC's Money Fund Report is published by IBC Financial Data Inc., a subsidiary of IBC USA (Publications) Inc.
