The Investment Company Institute, the trade group for the mutual fund industry, published its latest monthly "Trends in Mutual Fund Investing" and "Month-End Portfolio Holdings of Taxable Money Funds" for March 2024 earlier this week. ICI's monthly Trends shows money fund totals falling $73.0 billion in March to $5.984 trillion (after a jump in February, January, December and November, a decrease in October, and increases in September, August, July, June, May and April). Prior to this, the March 2023 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 increased $63.8 billion to $4.846 trillion, and bond ETF assets increased and remain above the $1.5 trillion level (after passing it for the first time ever 3 months ago).
MMFs have increased by $745.5 billion, or 14.2%, over the past 12 months (according to ICI's Trends through 3/31). Money funds' March asset decrease follows an increase of $55.1 billion in February, $82.4 billion in January, $34.9 billion in December, $213.9 billion in November, a decrease of $13.6 billion in October and gains of $74.1 billion in September, $123.9 billion in August $31.4 billion in July, $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 and $31.5 billion in January. 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 $1.533 trillion as of 3/31, according to ICI.)
ICI's monthly release states, "The combined assets of the nation's mutual funds increased $432.10 billion, or 1.6 percent, to $26.81 trillion in March, 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 $26.63 billion in March, compared with an inflow of $37.53 billion in February.... Money market funds had an outflow of $89.33 billion in March, compared with an inflow of $38.16 billion in February. In March funds offered primarily to institutions had an outflow of $114.10 billion and funds offered primarily to individuals had an inflow of $24.77 billion."
The Institute's latest statistics show that Taxable MMFs were lower while Tax Exempt MMFs were higher from last month. Taxable MMFs decreased by $75.2 billion in March to $5.863 trillion. Tax-Exempt MMFs increased $2.2 billion to $121.3 billion. Taxable MMF assets increased year-over-year by $736.5 billion (14.4%), and Tax-Exempt funds rose by $9.0 billion over the past year (8.0%). Bond fund assets increased by $63.8 billion (after increasing $3.2 billion in February) to $4.846 trillion; they've increased by $216.7 billion (4.7%) over the past year.
Money funds represent 22.3% of all mutual fund assets (down 0.7% from the previous month), while bond funds account for 18.1%, according to ICI. The total number of money market funds was 275, up 3 from the prior month and down from 281 a year ago. Taxable money funds numbered 230 funds, and tax-exempt money funds numbered 45 funds.
ICI's "Month-End Portfolio Holdings" confirms a drop in Treasuries and CDs last month. Treasury holdings in Taxable money funds decreased last month; they became the largest composition segment in February. In March, Treasury holdings decreased $28.2 billion, or -1.2%, to $2.383 trillion, or 40.7% of holdings. Treasury securities have increased by $1.387 trillion, or 139.1%, over the past 12 months. (See our Apr. 10 News, "April Money Fund Portfolio Holdings: Repo Rises, Treasuries, TDs Fall.")
Repurchase Agreements fell to become the second largest composition segment in February, but in March they increased $15.8 billion, or 0.7%, to $2.245 trillion, or 38.3% of holdings. Repo holdings have decreased $747.1 billion, or -25.0%, over the past year. U.S. Government Agency securities were the third largest segment; they decreased $14.7 billion, or -2.1%, to $676.2 billion, or 11.5% of holdings. Agency holdings have decreased by $57.2 billion, or -7.8%, over the past 12 months.
Certificates of Deposit (CDs) remained in fourth place; they decreased by $32.5 billion, or -9.3%, to $316.1 billion (5.4% of assets). CDs held by money funds rose by $109.2 billion, or 52.8%, over 12 months. Commercial Paper remained in fifth place, up $17 million, or 0.0%, to $256.4 billion (4.4% of assets). CP increased $89.9 billion, or 54.0%, over one year. Other holdings decreased to $19.8 billion (0.3% of assets), while Notes (including Corporate and Bank) decreased to $3.8 billion (0.1% of assets).
The Number of Accounts Outstanding in ICI's series for taxable money funds increased to 66.445 million, while the Number of Funds was up 3 at 230. Over the past 12 months, the number of accounts rose by 8.658 million and the number of funds decreased by 2. The Average Maturity of Portfolios was 39 days, down 1 from February. Over the past 12 months, WAMs of Taxable money have increased by 23.
