Money Funds Report Record Net Inflow
Corrections & Amplifications</br></br>INVESTORS PLACED $30.77 billion into money-market funds in the week ended Tuesday, bringing net assets to a record $2.045 trillion, according to Money Fund Report, a newsletter. An article yesterday incorrectly said that the $30.77 billion was a record; in fact, the net-asset figure is a record. (WSJ May 25, 2001)</br></br>NEW YORK -- A record $30.77 billion flowed into money-market funds in the week ended Tuesday, bringing net assets to $2.045 trillion, according to Money Fund Report, a newsletter.</br></br>The surge in inflows came from institutional investors, who stashed a net $31.74 billion into taxable money-market funds in an attempt to avoid the most recent cut in interest rates, said Peter Crane, managing editor of the Money Fund Report.</br></br>Taxable money-market funds are considered temporary havens from interest-rate cuts because of their long maturity of about 52 days. As a result, assets in those funds yield the more appealing returns of former rates. The Federal Reserve cut key federal-fund rates by half a percentage point to 4% on May 15.