...Investments In Line With Market: Aggregate U.S. money fund investments in asset-backed commercial paper (ABCP) conduits have been declining steadily as issuance in the market wanes. During the 12 months ended January 2015, U.S. ABCP outstandings fell $22.5 billion to a total of $234.6 billion. During the same stretch, money fund investments in ABCP shrank by $1.8 billion to a total of $91 billion, representing a 1.9% drop, smaller than the 8.8% decline in the ABCP market broadly. Manager Appetite Varies: Despite the overall reduction in money fund holdings of ABCP, there are clear differences in ABCP appetite among fund managers. While Fidelity and Vanguard, two of the largest U.S. prime money fund managers, held only negligible amounts of ABCP as of January 2015, other large managers reached double-digit allocations to this asset type. Among the 10 largest U.S. prime money fund managers, Wells Fargo had the greatest allocation to ABCP as a percentage of total assets at 21% and in fact...
