The Investment Company Institute released its weekly money market mutual fund totals yesterday evening, showing assets grew for the 5th week in a row. Though the increase was a mere $1.35 billion this week, to $3.538 trillion, money funds have gained $138.49 billion over the past 4 weeks, recovering the bulk of the $182.35 billion in declines experienced from Sept. 11 through Oct. 1.
General Purpose ("Prime") Institutional money fund assets increased by $6.68 billion, the 3rd consecutive weekly increase for this category. Though the rebound has been modest, last week Prime Institutional funds retook the $1 trillion level. But their asset total remains slightly smaller than Government Institutional funds, which total $1.08 trillion after a $12.09 billion increase this week. Government Institutional funds, including Treasury Inst, broke above $1 trillion and became the single largest money fund category the first week of October.
ICI also released its September monthly asset figures yesterday, which showed money fund assets falling by $137 billion for the calendar month, down 3.9%. Overall mutual fund assets (including stock and bond funds) fell by almost $1 trillion, down a stunning $959.33 billion, or 8.3%. Money funds could take small solace in the fact that their share of the $10.63 trillion in total mutual fund assets thus rose to 31.8%.
ICI's monthly statistics also included their "Month-End Portfolio Holdings of Taxable Money Market Funds" report. Commercial paper remained the largest holding of taxable money funds at $587.05 billion, or 20.1% of assets. But CP holdings declined a stunning $151.25 billion, or 20.5%, in September. Repurchase agreements (repo) were the second largest holding with 20.0%, or $582.10 billion, up $59.00 billion, or 11.3% on the month.
Government agency securities represent the third largest taxable money fund holding with $435.53 billion, or 14.9%, of assets, while Treasury bills and securities rank fourth with $431.25 billion in money funds assets, or 14.8%. Agencies grew by $23.72 billion, or 5.8%, while Treasuries surged $133.57 billion, or 44.8%. Money fund investment in Certificates of Deposits (CDs), which now account for 9.6% of assets, fell by $58.52 billion, or 17.3%, to $280.44 billion, and Eurodollar CD holdings fell $25.49 billion, or 15.4%, to $140.36 billion.
The Average Maturity of money fund portfolios shortened substantially in September to 41 days from 48 days. ICI shows 33.74 million accounts outstanding at month-end September, down a dramatic 425.80 thousand accounts. Over the past year, taxable money fund accounts have declined by 1.37 million accounts.