ICI's latest weekly "Money Market Fund Assets" report shows money funds jumping $40.4 billion to a record $6.508 trillion, after dipping $6.6 billion last week. Assets have risen in 10 of the last 12, and 21 of the last 27 weeks, increasing by $204.6 billion (or 3.2%) since the Fed cut on 9/18 and increasing by $530.7 billion (or 8.9%) since April 24. MMF assets are up by $622 billion, or 13.1%, year-to-date in 2024 (through 10/23/24), with Institutional MMFs up $289 billion, or 9.5% and Retail MMFs up $333 billion, or 19.8%. Over the past 52 weeks, money funds have risen by $876 billion, or 15.5%, with Retail MMFs up by $433 billion (19.8%) and Inst MMFs rising by $443 billion (12.9%). (Note: Thank you to everyone that stopped by our booth at at AFP's Annual Conference in Nashville earlier this week!)
ICI's weekly release says, "Total money market fund assets increased by $40.41 billion to $6.51 trillion for the week ended Wednesday, October 23, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $33.35 billion and prime funds increased by $4.90 billion. Tax-exempt money market funds increased by $2.16 billion. " ICI's stats show Institutional MMFs increasing $31.2 billion and Retail MMFs rising $9.2 billion in the latest week. Total Government MMF assets, including Treasury funds, were $5.317 trillion (81.7% of all money funds), while Total Prime MMFs were $1.059 trillion (16.3%). Tax Exempt MMFs totaled $132.5 billion (2.0%).
ICI explains, "Assets of retail money market funds increased by $9.23 billion to $2.62 trillion. Among retail funds, government money market fund assets increased by $4.87 billion to $1.67 trillion, prime money market fund assets increased by $2.74 billion to $834.71 billion, and tax-exempt fund assets increased by $1.62 billion to $121.02 billion." Retail assets account for over a third of total assets, or 40.3%, and Government Retail assets make up 63.6% of all Retail MMFs.
They add, "Assets of institutional money market funds increased by $31.18 billion to $3.89 trillion. Among institutional funds, government money market fund assets increased by $28.48 billion to $3.65 trillion, prime money market fund assets increased by $2.16 billion to $224.00 billion, and tax-exempt fund assets increased by $538 million to $11.50 billion." Institutional assets accounted for 59.7% of all MMF assets, with Government Institutional assets making up 93.9% of all institutional MMF totals.
According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have risen by $75.1 billion in October through 10/23 to $6.840 trillion. Assets rose by $149.8 billion in September, $109.7 billion in August, $16.6 billion in July, $15.7 billion in June and $91.4 billion in May, but they fell $15.8 billion in April and $68.8 billion in March. They 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 last October. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're about $340 billion lower than Crane's asset series.
In other news, a Prospectus Supplement filing for BNY Mellon National Municipal Money Market Fund states, "The Board of Trustees of BNY Mellon Funds Trust has approved the liquidation of BNY Mellon National Municipal Money Market Fund, a series of the Trust, effective on or about October 21, 2024. Before the Liquidation Date, and at the discretion of Fund management, the Fund's portfolio securities will be sold and/or allowed to mature in their normal course and the Fund may cease to pursue its investment objective and policies. The liquidation of the Fund may result in one or more taxable events for shareholders subject to federal income tax."
It explains, "Accordingly, effective on or about September 18, 2024, the Fund will be closed to any investments for new accounts, except that new accounts may be established for 'sweep accounts' and by participants in group retirement plans (and their successor plans), provided the plan sponsor has been approved by BNY Mellon Investment Adviser, Inc. ('BNYM Adviser'), in the case of BNYM Adviser-sponsored retirement plans, or BNY Wealth ('BNYW'), in the case of BNYW-sponsored retirement plans, and has established the Fund as an investment option in the plan before the Closing Date."
BNY writes, "The Fund will continue to accept subsequent investments until the Liquidation Date, except that subsequent investments made by check or pursuant to TeleTransfer or Automatic Asset Builder no longer will be accepted after October 11, 2024. However, subsequent investments made by BNYW-sponsored retirement accounts and BNYM Adviser-sponsored retirement accounts, if any, pursuant to TeleTransfer or Automatic Asset Builder (but not by check) will be accepted after October 11, 2024. Please note that checks presented for payment to the Fund's transfer agent pursuant to the Fund's Checkwriting Privilege on or after the Liquidation Date will not be honored."
They add, "Fund shares held on the Liquidation Date in BNYW Retirement Accounts will be reallocated to other previously approved investment vehicles designated in account documents as determined by BNYW and/or a client's trustee or other fiduciary, where required, within BNYW's investment discretion should the consent of a client's third-party fiduciary not be obtained prior to the Liquidation Date. Fund shares held on the Liquidation Date in BNYM Adviser Retirement Accounts will be exchanged for Wealth shares of Dreyfus Government Cash Management ('DGCM')."
For more on recent liquidations, see these Crane Data News stories: "UBS Files to Liquidate Tax-Free Fund (10/15/24), "Alight Money Fund Liquidates; Bloomberg Law on Brokerage Sweep Suits (9/19/24), "Dreyfus NY Muni MMF Liquidating" (8/14/24), "Invesco Files to Liquidate Prime Inst MMFs; UBS MF Converting to Retail" (6/13/24) and "DWS Liquidating ESG Liquidity Fund, 7th Prime Inst to Exit; MM Basics" (5/22/24).
Finally, we learned about another change involving Dreyfus from the Federal Reserve Bank of New York, who via its brief, "Reverse repo counterparties list updated," tells us, "JNL/WMC Government Money Market Fund is changed to JNL/Dreyfus Government Money Market Fund, effective October 21."
The filing for the Jackson National Life Insurance Company of New York says, "Effective October 21, 2024, the following changes were made to the Funds available under the Contract: Fund Name Changes ... JNL/WMC Government Money Market Fund to JNL/Dreyfus Government Money Market Fund." (WMC is Wellington Management Company.)
