ICI's latest "Money Market Fund Assets" report shows money market mutual fund assets rebounding after falling sharply the prior week due to tax payments. MMF assets are up by $91 billion, or 1.9%, year-to-date in 2024 (through 4/24/24), with Institutional MMFs down $20 billion, or -0.6% and Retail MMFs up $111 billion, or 6.6%. Over the past 52 weeks, money funds have risen by $715 billion, or 13.6%, with Retail MMFs rising by $502 billion (26.4%) and Inst MMFs rising by $262 billion (7.9%). (Note: Thanks to those who visited with us at the `The New England AFP Annual Conference!)
The weekly release says, "Total money market fund assets increased by $9.13 billion to $5.98 trillion for the week ended Wednesday, April 24, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $3.97 billion and prime funds increased by $3.15 billion. Tax-exempt money market funds increased by $2.01 billion." ICI's stats show Institutional MMFs increasing $8.9 billion and Retail MMFs rising $0.2 billion in the latest week. Total Government MMF assets, including Treasury funds, were $4.836 trillion (80.9% of all money funds), while Total Prime MMFs were $1.014 trillion (17.0%). Tax Exempt MMFs totaled $122.9 billion (2.1%).
ICI explains, "Assets of retail money market funds increased by $211 million to $2.40 trillion. Among retail funds, government money market fund assets decreased by $2.44 billion to $1.54 trillion, prime money market fund assets increased by $1.17 billion to $746.70 billion, and tax-exempt fund assets increased by $1.48 billion to $112.86 billion." Retail assets account for over a third of total assets, or 40.2%, and Government Retail assets make up 64.2% of all Retail MMFs.
They add, "Assets of institutional money market funds increased by $8.92 billion to $3.58 trillion. Among institutional funds, government money market fund assets increased by $6.41 billion to $3.29 trillion, prime money market fund assets increased by $1.98 billion to $270.02 billion, and tax-exempt fund assets increased by $527 million to $12.02 billion." Institutional assets accounted for 59.8% of all MMF assets, with Government Institutional assets making up 92.1% of all institutional MMF totals.
According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have fallen by $26.4 billion in April (through 4/24) to $6.371 trillion (they were a record $6.538 trillion on 4/2). Assets fell $68.8 billion in March, but rose $72.1 billion in February, $93.9 billion in January, $32.7 billion in December and $226.4 billion in November. MMF totals fell by $31.9 billion in October. They rose $93.9 billion in September, $98.3 billion in August and $34.7 billion in July. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're over $400 billion lower than Crane's asset series.
In other news, a press release titled, "Federated Hermes, Inc. reports first quarter 2024 earnings of $0.89" tells us, "Federated Hermes, Inc. (FHI), a global leader in active, responsible investing, today reported earnings per diluted share (EPS) of $0.89 for Q1 2024, compared to $0.78 for the same quarter last year, on net income of $75.0 million for Q1 2024, compared to $69.6 million for Q1 2023."
It states, "Federated Hermes' total managed assets were a record $778.7 billion at March 31, 2024, up $77.7 billion or 11% from $701.0 billion at March 31, 2023 and up $21.1 billion or 3% from $757.6 billion at Dec. 31, 2023. Total average managed assets for Q1 2024 were $776.5 billion, up $97.1 billion or 14% from $679.4 billion reported for Q1 2023 and up $48.5 billion or 7% from $728.0 billion for Q4 2023."
"Investors continued to turn to the attractive yields available in our liquidity products. Our money market asset increases drove Federated Hermes to record assets under management for the sixth consecutive quarter," said J. Christopher Donahue, president and chief executive officer. "Investors also sought to add duration to portfolios, and net sales of fixed-income products were led by our flagship core-plus offering, Federated Hermes Total Return Bond Fund, the Federated Hermes Total Return Bond ETF and ultrashort products."
Federated explains, "Fixed-income assets were $96.3 billion at March 31, 2024, up $8.8 billion or 10% from $87.5 billion at March 31, 2023 and up $1.4 billion or 1% from $94.9 billion at Dec. 31, 2023. Top-selling fixed-income funds during Q1 2024 on a net basis were Federated Hermes Total Return Bond Fund, Federated Hermes Ultrashort Bond Fund, Federated Hermes Government Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF and Federated Hermes Institutional High Yield Bond Fund."
They continue, "Money market assets were a record $578.8 billion at March 31, 2024, up $73.0 billion or 14% from $505.8 billion at March 31, 2023 and up $18.8 billion or 3% from $560.0 billion at Dec. 31, 2023. Money market fund assets were a record $417.1 billion at March 31, 2024, up $59.8 billion or 17% from $357.3 billion at March 31, 2023 and up $10.9 billion or 3% from $406.2 billion at Dec. 31, 2023."
They add, "Revenue increased $14.2 million or 4% primarily due to an increase in revenue due to higher average money market assets. This increase was partially offset by a decrease in revenue due to lower average equity assets. During Q1 2024, Federated Hermes derived 48% of its revenue from long-term assets (30% from equity, 12% from fixed income, and 6% from alternative/private markets and multi-asset), 51% from money market assets, and 1% from sources other than managed assets."
Finally, Federated writes, "Operating expenses increased $0.8 million. Nonoperating income (expenses), net decreased $1.9 million or 26% due primarily to a smaller increase in the market value of investments in Q1 2024 compared to the increase in the market value of investments in Q1 2023. This decrease was partially offset by an increase in investment yields due to higher interest rates. Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, April 26, 2024. Investors are invited to listen to the earnings teleconference by calling 888-506-0062.... To listen online, go to the About section of FederatedHermes.com/us at least 15 minutes prior to register and join the call."
