ICI released its latest monthly "Trends in Mutual Fund Investing" and "Month-End Portfolio Holdings of Taxable Money Funds" for July 2023 on Wednesday. The monthly Trends shows money fund totals rising $31.4 billion in June to a record $5.481 trillion (after increases in June, May and April). Prior to this, the March jump (a $371.0 billion increase) was the third largest monthly increase ever and the largest in history if you exclude 2 coronavirus lockdown panic months in March and April 2020. Bond fund assets also increased, rising $26.0 billion to $4.662 trillion.
MMFs have increased by $906.8 billion, or 19.8%, over the past 12 months. Money funds' July asset increase follows gains of $30.6 billion in June, $172.7 billion in May, $8.4 billion in April, $371.0 billion in March, $60.0 billion in February, $31.5 billion in January, $105.3 billion in December, $63.4 billion in November, $36.8 billion in October and $4.2 billion in Sept. Money fund assets surpassed bond fund assets in September 2022 for the first time since 2010 and they continued to hold a sizeable lead last month. (The bond fund totals don't include bond ETFs, which total $1.392 trillion as of 7/31, according to ICI.)
ICI's monthly release states, "The combined assets of the nation’s mutual funds increased by $477.90 billion, or 2.0 percent, to $24.78 trillion in July, according to the Investment Company Institute’s official survey of the mutual fund industry. In the survey, mutual fund companies report actual assets, sales, and redemptions to ICI.... ` Bond funds had an inflow of $11.12 billion in July, compared with an inflow of $12.82 billion in June <b:>`_.... Money market funds had an inflow of $17.82 billion in July, compared with an inflow of $16.20 billion in June. In July funds offered primarily to institutions had an outflow of $13.04 billion and funds offered primarily to individuals had an inflow of $30.86 billion."
The Institute's latest statistics show that Taxable MMFs were higher while Tax Exempt MMFs were lower last month. Taxable MMFs increased by $34.8 billion in July to $5.369 trillion. Tax-Exempt MMFs decreased $3.4 billion to $112.1 billion. Taxable MMF assets increased year-over-year by $891.3 billion (19.9%), and Tax-Exempt funds rose by $15.5 billion over the past year (16.0%). Bond fund assets increased by $26.0 billion (after increasing $20.5 billion in June) to $4.662 trillion; they've decreased by $217.3 billion (-4.5%) over the past year.
Money funds represent 22.1% of all mutual fund assets (down 0.3% from the previous month), while bond funds account for 18.8%, according to ICI. The total number of money market funds was 279, down 1 from the prior month and down from 297 a year ago. Taxable money funds numbered 231 funds, and tax-exempt money funds numbered 48 funds.
ICI's "Month-End Portfolio Holdings" confirm a drop in Repo and a jump in Treasuries last month. Repurchase Agreements remained the largest composition segment in July but decreased $58.5 billion, or -1.9%, to $2.950 trillion, or 54.9% of holdings. Repo holdings have increased $535.7 billion, or 22.2%, over the past year. (See our Aug. 10 News, "August Portfolio Holdings: Treasuries Skyrocket; Repo, Agencies Plunge.")
Treasury holdings in Taxable money funds increased last month; they remain the second largest composition segment. Treasury holdings increased $152.6 billion, or 12.9%, to $1.337 trillion, or 24.9% of holdings. Treasury securities have decreased by $16.6 billion, or -1.2%, over the past 12 months. U.S. Government Agency securities were the third largest segment; they decreased $59.6 billion, or -8.9%, to $612.9 billion, or 11.4% of holdings. Agency holdings have increased by $231.4 billion, or 60.6%, over the past 12 months.
Certificates of Deposit (CDs) remained in fourth place; they increased by $20.6 billion, or 8.8%, to $255.9 billion (4.8% of assets). CDs held by money funds rose by $77.5 billion, or 43.4%, over 12 months. Commercial Paper remained in fifth place, up $17.5 billion, or 9.6%, to $199.4 billion (3.7% of assets). CP increased $72.1 billion, or 56.6%, over one year. Other holdings increased to $38.9 billion (0.7% of assets), while Notes (including Corporate and Bank) decreased to $9.0 billion (0.2% of assets).
The Number of Accounts Outstanding in ICI's series for taxable money funds increased to 59.894 million, while the Number of Funds was down 1 at 231. Over the past 12 months, the number of accounts rose by 1.792 million and the number of funds decreased by 7. The Average Maturity of Portfolios was 23 days, down 1 from June. Over the past 12 months, WAMs of Taxable money have decreased by 1.
