Yields on Money Funds Rose in the Latest Week
May 04, 2011
NEW YORK -- Yields on money-market funds were higher in the latest week. The average seven-day compound yield on taxable funds rose to 4.93% from 4.91% in the week ended Tuesday, according to IBC's Money Fund Report, an Ashland, Mass., newsletter. Compound yields assume reinvestment of dividends. Assets of 818 taxable funds increased by $6.63 billion to $730.1 billion. Institutional investors contributed about $3.4 billion of that amount. The average seven-day simple yield rose to 4.82% from 4.79%. The average 30-day simple yield remained at 4.82%, the newsletter said. The average 30-day compound yield was also steady at 4.94%. The average maturity of the taxable funds' investments, which include commercial paper (short-term corporate IOUs) and Treasury bills, increased by one day to 51 days. Yields on tax-free money funds were also higher. The average seven-day compound yield rose to 3.08% from 3.01%, in the latest week, the newsletter reported. The latest yield is equivalent to a taxable 4.81% for an investor in the 36% tax bracket and to 5.01% for someone in the 39.6% bracket. Assets of 411 tax-exempt funds increased by $1.49 billion in the week ended Monday, to $137.38 billion, according to Money Fund Report. The average portfolio maturity remained at 51 days. IBC's Money Fund Report is published by IBC Financial Data Inc., a subsidiary of IBC USA (Publications) Inc.
VastPress 2011 Vastopolis
