Like other fund firms, Bank of New York Mellon suffered government and treasury money market outflows last quarter. On Tuesday the New York-based custody giant revealed in its Q1 earnings report that its AUM fell 20 percent year-over-year to $881 billion on March 31. Beleaguered treasury and government money fund rates contributed substantially to that drop.

"Net asset outflows in the first quarter totaled $12 billion, primarily due to outflows in treasury/government money market funds reflecting the historically low level of interest rates," the report reads.

BNY Mellon Asset Management placed its money market business into a new unit earlier this year, BNY Mellon Cash Investment Strategies, alongside institutional separate accounts, offshore liquidity funds and stable value products (see MFWire, 1/14/2009). 

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