As we wrote earlier this month (and reprint here), our January MFI issue recognized the top performing money funds, ranked by total returns, for calendar year 2023, as well as the top funds for the past 5-year and 10-year periods. We present the funds below with our annual Money Fund Intelligence Awards. These are given to the No. 1‐ranked funds based on 1-year, 5-year and 10-year returns, through Dec. 31, 2023, in each of our major fund categories -- Prime Institutional, Government Institutional, Treasury Institutional, Prime Retail, Government Retail, Treasury Retail and Tax‐Exempt. (Let us know if you'd like to see our latest Money Fund Intelligence issue with the MFI Awards article or our latest MFI XLS product with the performance data and rankings behind the awards.)
The Top-Performing Prime Institutional fund (and fund overall) was BlackRock Cash Inst MMF SL (BISXX), which returned 5.38%. Excluding private and internal funds, the best performer in 2023 was Western Asset Prem Inst Liquid Res Capital (WAAXX) with a return of 5.35%. Among Prime Retail funds, Allspring Money Market Fund Premier (WMPXX) had the best return in 2023 (5.28%). (Our Crane 100 Money Fund Index returned 4.90% in 2023.)
The Top‐Performing Govt Institutional funds in 2023 were Fidelity Flex Govt Money Market Fund (FLGXX) and Fidelity Series Govt Money Market Fund (FGNXX), which both returned 5.22%. Vanguard Cash Reserves Federal MM Adm (VMRXX) was the Top Government Retail fund with a 5.10% return. Dreyfus Inst Pref Treas Obl Inst (DNSXX) and Dreyfus Treas & Agen Liquidity MMF (DTLXX) tied to rank No. 1 in the Treasury Institutional class with returns of 5.11%. Vanguard Treasury Money Market (VUSXX) was No. 1 among Treasury Retail, returning 5.05%.
For the 5‐year period through Dec. 31, 2023, BlackRock Cash Inst MMF SL (BISXX) took top honors for the best performing Prime Institutional money fund with a return of 2.08%. Allspring MMF Premium (WMPXX) ranked No. 1 among Prime Retail with an annualized return of 1.99%.
Fidelity Flex Govt Money Market Fund (FLGXX) and Fidelity Series Govt Money Market Fund (FGNXX) both ranked No. 1 among Govt Institutional funds with returns of 1.93%, while Vanguard Cash Reserves Federal MM Adm (VMRXX) ranked No. 1 among Govt Retail funds over the past 5 years with a return of 1.90%. BlackRock Cash Treas MMF SL (BRC03) ranked No. 1 in 5-year performance among Treasury Inst funds with a return of 1.84%. Vanguard Treasury Money Market (VUSXX) ranks No. 1 among Treasury Retail funds with a return of 1.82%.
The highest performers of the past 10 years and No. 1 among Prime Inst MMFs was BlackRock Cash Inst MMF SL (BRC01), which returned 1.46%. Morgan Stanley Inst Liq MMP Wealth (MWMXX), which returned 1.37%, was best among Prime Retail. Northern Inst Liquid Assets Portfolio (NOR03) returned 1.31% and ranked No. 1 among Govt Inst funds. Vanguard Cash Reserves Federal MM Adm (VMRXX) ranked No. 1 among Govt Retail funds, returning 1.33%.
BlackRock Cash Treas MMF SL (BRC03) returned the most among Treasury Inst funds over the past 10 years at 1.21%. Vanguard Treasury Money Market (VUSXX) ranked No. 1 among Treasury Retail money market funds at 1.19%.
We're also giving out awards for the best-performing Tax-Exempt MMFs. Federated Hermes Muni Obligs WS (MOFXX) ranked No. 1 among T-E funds over 1-year with a return of 3.49%. JPMorgan Inst Tax Free MM Inst (JOFXX) ranked No. 1 over 5-years ended Dec. 31, 2023 with a return of 1.70%. Federated Hermes Muni Obligs WS (MOFXX) also ranked No. 1 for the 10-year period with a return of 0.93%.
See the MFI Award Winner listings on page 6 of MFI, and see our latest Money Fund Intelligence XLS for more detailed rankings. The tables on page 6 show the No. 1 ranked money fund for each category based on 1‐year, 5‐year, and 10‐year annualized total returns.
In other news, money fund yields dipped one basis point to 5.16% on average (as measured by our Crane 100 Money Fund Index) in the week ended Jan. 19, after falling 1 bp the week prior. Our Crane 100 is an average of 7-day yields for the 100 largest taxable money funds. Yields were 5.20% on 12/31/23 and on 11/30, 5.19% on 10/31, 5.17% on 9/30, 5.16% on 8/31, 5.09% on July 31, 4.94% on June 30, 4.61% on March 31 and 4.05% on 12/31/22. The vast majority of money market fund assets now yield 5.0% or higher. Assets of money market funds rose by $8.2 billion last week to $6.341 trillion according to Crane Data's Money Fund Intelligence Daily. Weighted average maturities were unchanged last week.
The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 690), shows a 7-day yield of 5.07%, unchanged in the week through Friday. Prime Inst MFs were unchanged at 5.28% in the latest week. Government Inst MFs were down 1 bp at 5.13%. Treasury Inst MFs were unchanged at 5.09%. Treasury Retail MFs currently yield 4.88%, Government Retail MFs yield 4.85%, and Prime Retail MFs yield 5.10%, Tax-exempt MF 7-day yields were up 1 bp at 2.03%.
According to Monday's Money Fund Intelligence Daily, with data as of Friday (1/19), 124 money funds (out of 814 total) yield under 3.0% with $126.6 billion in assets, or 2.0%; 4 funds yield between 3.00% and 3.99% ($845 million, or 0.0%), 222 funds yield between 4.0% and 4.99% ($1.057 trillion, or 16.7%) and 464 funds now yield 5.0% or more ($5.157 trillion, or 81.3%).
Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.61%. The latest Brokerage Sweep Intelligence, with data as of Jan. 19, shows that there were no changes over the past week. Three of the 11 major brokerages tracked by our BSI still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
