Article: Assets in money funds grow as yields climb; 2.2% growth shown so far in 2005.(News)

Byline: David Hoffman

NEW YORK - After years of outflows, interest in money market funds is growing.

Assets in money funds increased by 2.2%, or $42 billion, year-to-date through Oct. 18, according to Peter Crane, vice president and managing editor at iMoneyNet Inc., a money fund research firm in Westborough, Mass.

Much of the renewed interest has to do with increasing yields, he said.

Average money fund yields were 3.3% on Oct. 18, Mr. Crane said. That's a big improvement over yields that were below 1% just a few years ago, he said.

And yields - which closely follow interest rates - are expected to continue to rise.

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