12.30.23

Stampede Into Money Market Funds Sparks Fee Bonanza for Asset Managers

by: Brooke Masters; Harriet Clarfelt; Madison Darbyshire; et al.

Record inflows into U.S. money market funds (MMFs) in 2023 triggered a multibillion-dollar fee bonanza for the asset management industry. U.S. MMF providers -collectively earned $7.6 billion in fees in 2023 as assets passed $6.3 trillion, according to data from the U.S. Office for Financial Research. That was more than $1 billion more than in 2022 and 35% higher than in 2021, before U.S. interest rates began to rise.

Read the full article on Financial Times