​ Assets Rebound From Year End Outflows; 2007 Sets Increase Record. Money market mutual fund assets increased by $​2.​48 billion to $​3.​113 trillion in the week ended Jan. 2, reports the Investment Company Institute. This followed two weeks of modest outflows when funds lost $​10.​1 billion. The year 2007 will still undoubtedly go down as the largest single-​year asset increase in money fund history. Cash fund assets increased by a stunning $​722 billion, or 30.​2%, over the past 52 weeks. (​ICI'​s official calendar numbers won'​t be tallied for weeks.) Over $​553 billion of the increase happened in the second half of the year, when credit concerns and Federal Reserve rate cuts drove institutional cash into the diversified, higher-​yielding money fund pools in droves. While some concerns over residual SIV holdings linger, money funds should continue to see strong inflows into 2008 as securities lenders, pension funds and other institutions "​ride the lag" of Fed rate cuts by shifting from repo and overnight investments into longer-​maturity-​profiled (​34 day) money market funds.

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