Yesterday, we released the latest copy of our flagship Money Fund Intelligence publication. The December issue features the articles, "Comeback Kid: Support Helping Money Funds" and "Zero Yield Threshold: Severe Pain for MFs?" These discuss the startling surge in money fund assets and the potential damage wrought to money fund revenues by lower interest rates, respectively. We also interview the managers of the formerly-​named American Performance Funds in our monthly portfolio manager interview entitled, "Low Profile OK With Cavanal Hill Funds."

The lead story in the new MFI says, "The barrage of support measures taken by the U.​S. Treasury, Federal Reserve, and other Government entities appears to have money market mutual funds well on the road to recovery. Though Government and Treasury funds continue to gain the majority of inflows, overall money fund assets have risen for 10 straight weeks and have hit new record highs the past 7 weeks in a row."

Crane Data also doesn'​t believe the damage will be severe with additional Fed rate cuts. While we don'​t believe the Fed will cut any lower due to sensitivity to money fund and money market concerns, "we don'​t believe another 1/​4-​point, or even a 1/​2-​percent move, would cause critical damage to money funds' revenue streams," says the December issue. "Money funds with yields of 0.​25% or lower represent just 2.​2% of money fund assets," says the new MFI.

Finally, our monthly Crane Index series shows that yields and returns continued lower in November. The Crane 100 7-​day yield was 1.​61% as of Nov. 30, while the broader Crane Money Fund Average fell to 1.​13%. The Crane Institutional MF Index fell to 1.​28%, the Crane Individual MF Index fell to 0.​99%, and the Crane Tax-​Exempt MF Index fell to 0.​83%. Look for more from our latest monthly issue in coming days. (​To request the latest issue of Crane Index or Money Fund Intelligence, call 508-​439-​4419.)

Taxable money market mutual fund yields were flat in August and will remain remain flat for the foreseeable future. Tax-​exempt money fund yields, however, plunged in August after jumping in July. Our Crane Money Fund Average, which is comprised of 900 taxable money market mutual funds, yielded 1.​96% (​7-​day simple) as of Aug. 31, 2008, unchanged from the prior month. The Crane Tax Exempt MF Index, which is comprised of 455 municipal and tax-​free money funds, yielded 1.​35% at the end of August vs. 1.​82% as of July 31.

The Crane 100 Money Fund Index, a benchmark of the 100 largest taxable funds, remained flat at 2.​24% in August. A year ago, the Crane 100 was 5.​01%, and at the start of 2008 the index was 4.​49%. Through August 31, 2008, the Crane 100 shows the following unannualized returns: 0.​19% for 1-​month 0.​55% for 3 months; and 1.​88% for YTD. For the pasy 1-​year it returned 3.​50%. Average annualized returns for money fund investors were 4.​29% over 3 years, 3.​16% for 5 years, and 3.​48% for 10 years. All of these returns are net of fees.

Expense ratios for money funds declined slightly in August. The average expense ratio among the largest money funds, as measured by the Crane 100, was 0.​37% (​annualized) for the latest month. The broader Crane Money Fund Average shows taxable money fund expenses at 0.​47%, while Tax Exempt funds averaged 0.​54%.

Money fund portfolio maturities extended slightly. Our Crane MF Average remained at a 40 day AM (​average maturity), but our Crane 100 Index'​s AM rose from 45 to 47 days. Tax exempt AMs went from 29 days to 30 days. Average maturity measures the duration of fund investments and the length of time, in days, it takes a portfolio to turn over. As you can see, money fund portfolios have an extremely short lifespan.

For more on our Crane Money Fund Indexes and Averages, see the latest issue of Crane Index, Money Fund Intelligence, Money Fund Intelligence XLS, or Money Fund Intelligence Daily. Crane Indexes are also available on Bloomberg Professional -- enter '​ALLX CRNI' for a listing.

The August issue of Crane Data'​s flagship Money Fund Intelligence was e-​mailed to subscribers this morning. The latest newsletter features the articles "Looking at Money Fund Portfolio Composition," "Federated'​s Ochson Debunks Muni Myths," and "Clearwater, DB Launch M-​Fund Transparency." MFI also includes the latest money fund news (​in more detail than the website), indexes, performance, and statistics.

The monthly "​Fund Profile" and manager interview features a discussion with Mary Jo Ochson, Senior portfolio manager and CIO of Federated Investors' Tax-​Exempt Money Market Group. Ochson tells MFI readers about the new money fund eligible variable-​rate demand preferreds (​VRDPs) being issued by closed-​end funds to retire auction-​rate preferred securities (​ARPS). She also addresses concerns over monoline insurers and discusses asset growth and other issues in the tax-​free money fund marketplace.

As of July 31, the Crane Money Fund Average, our broadest measure of taxable money fund performance including 885 funds, remained unchanged yielding (​7-​day simple) 1.​96%. The Crane 100 Index declined by 0.​03% to 2.​24% during July. The Crane Institutional MF Index fell 1 basis point to 2.​23%, the Crane Individual MF Index was unchanged at 1.​80%, and the Crane Tax-​Exempt MF Index jumped 0.​54% to 1.​82%.

Through July 31, 2008, the Crane 100 Index returned 0.​19% for one-​month, 0.​55% for 3 months, 1.​68% YTD, 3.​75% over 1-​year, 4.​31% over 3 years (​annualized), 3.​14% over 5 years, and 3.​50% over 10 years. Its average maturity rose by one day to 45 days. To request the latest issue of Money Fund Intelligence or Crane Index, e-​mail Pete Crane (​pete@​cranedata.​us).

The April issue of our Money Fund Intelligence and Crane Index publications show that money market fund yields continued to decline in March. The benchmark Crane 100 Money Fund Index fell 51 basis points (​0.​51%) to 2.​76% (​7-​day simple yield) in the month ended March 31, 2008. This index has fallen 173 bps since Dec. 31, 2007, and has fallen 224 bps (​from 5.​00%) since March 31, 2007. The Crane 100 Index returned the following for March 2008: 1-​month (​0.​25%), 3-​mo (​0.​89%), YTD (​0.​89%), 1-​Year (​4.​65%), 3-​Yr (​4.​35%), 5-​Yr (​3.​04%), and 10-​Yr (​3.​60%). Its 30-​Day yield was 2.​96% as of month-​end.

The broader Crane Money Fund Average, which tracks 861 taxable money market mutual funds, yielded 2.​26% (​7-​day) and 2.​52% (​30-​day) as of March 31, down 61 bps (​its 7-​day yield) from a month earlier and down 263 bps from a year earlier. The Crane Institutional MF Index declined 60 bps to 2.​56% and the Crane Individual MF Index declined 63 bps to 2.​08% in March. Our Crane Tax Exempt Index fell 50 bps to 1.​86%.

During the month, the Federal funds target rate was reduced from 3.​00 to 2.​25 percent. Brokerage cash and bank rates also declined during the month, though the former is starting to slow its descent (​due to some rates approaching zero). Our monthly Crane Brokerage Cash Index fell to 1.​80% (​down 29 bps), and our Crane Top Bank MM Index fell by 31 bps to 3.​35%. For more details on the Crane Indexes or to request a copy of our monthly Crane Index product, e-​mail Pete or call 1-​508-​439-​4419. (​You can also type "ALLX CRNI" to see the list of Crane Indexes available on the Bloomberg(​r) Professional service.)