The Federal Reserve released its latest quarterly "Z.1 Financial Accounts of the United States" statistical survey (a.k.a. "Flow of Funds") earlier this month. Among the 4 tables it includes on money market mutual funds, the First Quarter 2024 edition shows that Total MMF Assets increased by $83 billion to $6.441 trillion in Q1'24. The Household Sector, by far the largest investor segment with $4.025 trillion, saw the biggest asset increase in Q1, followed by Nonfinancial Corporate Businesses. The Fed's latest Z.1 numbers, which contain one of the few looks at money fund investor segments available, also showed noticeable increases for the Other Financial Business (formerly Funding Corps) and Mutual Funds categories in Q1 2024. (Note: Thanks once more to those who attended our Money Fund Symposium last week in Pittsburgh! Attendees and Crane Data subscribers may access the conference binder and materials via our "Money Fund Symposium 2024 Download Center." Mark your calendars for next year's Money Fund Symposium, which is scheduled for June 23-25, 2025 in Boston, Mass.)
Private Pension Funds, Rest of World, Exchange-traded funds, State & Local Governments and Nonfin Noncorporate Business categories saw small asset increases in Q1. Life Insurance Companies, Property-Casualty Insurance and State and local govt. retirement funds categories saw assets decreases last quarter. Over the past 12 months, the Household Sector, Nonfinancial Corporate Business, Life Insurance Companies, Private Pension Funds, Rest of World and Mutual Funds categories showed the biggest asset increases, while Other Financial Business (formerly Funding Corps) and State and local govt. retirement funds saw the biggest asset decreases.
The Fed's "Table L.206," "Money Market Mutual Fund Shares," shows that total assets increased by $83 billion, or 1.3%, in the first quarter to $6.441 trillion. The largest segment, the Household sector, totals $4.025 trillion, or 62.5% of assets. The Household Sector increased by $42 billion, or 1.1%, in the quarter. Over the past 12 months through March 31, 2024, Household assets were up $603 billion, or 17.6%.
Nonfinancial Corporate Businesses, the second-largest segment according to the Fed's data series, held $905 billion, or 14.1% of the total. Assets here increased by $10 billion in the quarter, or 1.2%, and they've increased by $100 billion, or 12.4%, over the past year. Other Financial Business was the third-largest investor segment with $445 billion, or 6.9% of money fund shares. This category jumped $17 billion, or 4.0%, in the latest quarter. Other Financial Business, which we believe includes Securities Lending, has decreased by $11 billion, or -2.5%, over the previous 12 months.
The fourth-largest segment, Private Pension Funds held $243 billion (3.8%). Mutual Funds (a recent addition to the tables), was the 5th largest category with 3.7% of money fund assets ($238 billion); it was up by $14 billion (6.3%) for the quarter and up $9 billion, or 3.7% over the last 12 months. The Rest of World remained sixth place in market share among investor segments with 2.9%, or $185 billion, while Nonfinancial Noncorporate Business held $140 billion (2.2%), Life Insurance Companies held $96 billion (1.5%), State & Local Governments held $73 billion (1.1%), Property-Casualty Insurance held $42 billion (0.7%), Exchange-traded Funds held $31 billion (0.5%), and State & Local Govt Retirement held $17 billion (0.3%) according to the Fed's Z.1 breakout.
The Fed's "Flow of Funds" Table L.121 shows "Money Market Mutual Funds" largely invested in “Security Repurchase Agreements” with $2.382 trillion, or 37.0% and "Debt Securities," or Credit Market Instruments, with $3.742 trillion, or 58.1% of the total. Debt securities includes: Open market paper ($316 billion, or 4.9%; we assume this is CP), Treasury securities ($2.564 trillion, or 39.8%), Agency and GSE-backed securities ($729 billion, or 11.3%), Municipal securities ($128 billion, or 2.0%) and Corporate and foreign bonds ($6 billion, or 0.1%).
Another large MMF position in the Fed's series includes `Time and savings deposits ($338 billion, or 5.3%). Money funds also hold minor positions in Miscellaneous assets ($-26 billion, or -0.4%) and Foreign deposits ($5 billion, 0.1%). Note: The Fed also lists "Variable Annuity Money Funds," which currently total $44 billion.
During Q1, Debt Securities were up $327 billion. This subtotal included: Open Market Paper (up $14 billion), Treasury Securities (up $294 billion), Agency- and GSE-backed Securities (up $21 billion), Corporate and Foreign Bonds (unchanged) and Municipal Securities (down $2 billion). In the first quarter of 2024, Security Repurchase Agreements were down $284 billion, Foreign Deposits were unchanged, Time and Savings Deposits were up by $49 billion, and Miscellaneous Assets were down $9 billion.
Over the 12 months through 3/31/24, Debt Securities were up $1.535 trillion, which included Open Market Paper (up $65B), Treasury Securities (up $1.523T), Agencies (down $63B), Municipal Securities (up $14B), and Corporate and Foreign Bonds (down $3B). Foreign Deposits (up $3 billion), Time and Savings Deposits were up $111B, Securities repurchase agreements were down $854 billion and Miscellaneous Assets were down $48B.
The L.121 table shows `Stable NAV money market funds with $5,776 billion, or 89.7% of the total (up $51.4 or 0.9% in Q1 and up $732 trillion or 14.5% over 1-year), and Floating NAV money market funds with $664 billion, or 10.3% (up $31.7B or 5.0% in Q1 and up $16B or 2.5% over 1-year). Government money market funds total $4.914 trillion, or 76.3% (down $6.5B or -0.1% in Q1 and up $479B or 10.8% over 1-year), Prime money market funds total $1.399 trillion, or 21.7% (up $92.7B or 7.1% in Q1 and up $260B or 22.8% over 1-year) and Tax-exempt money market funds $128B, or 2.0% (down $3B or -2.3% in Q1 and up $10B or 8.3% last year).
The Federal Reserve made changes to the Z.1 tables 2 years ago. Describing a "Money market funds sector data source change," the report says, "The money market mutual funds (MMF) sector (tables F.121 and L.121) has been revised beginning 2010:Q4 to reflect a change in data source to Securities and Exchange Commission Form NMFP. The level of assets and shares outstanding of the sector have increased due to the inclusion of private placement MMFs in the source data. Changes in the level due to changes in the data source in 2010:Q4 are recorded as other volume changes in the Financial Accounts."
On "Mutual funds sector holdings of money market funds," Z.1 tells us, "The mutual funds sector (tables F.122 and L.122) has been revised beginning 2010:Q4 to reflect holdings of money market funds not previously reported on the tables. In addition, holdings of repurchase agreements, commercial paper, corporate bonds, and miscellaneous assets have been revised. Additional and revised holdings are estimated using data from Morningstar and Investment Company Institute.... The exchange-traded funds sector (tables F.124 and L.124) has been revised beginning 2010:Q4 to reflect holdings of money market funds not previously reported on the tables."
