The Investment Company Institute published its latest monthly "Trends in Mutual Fund Investing" for August 2024, as well as its monthly "Month-End Portfolio Holdings of Taxable Money Funds" Wednesday. ICI's monthly Trends shows money fund totals rising $158.6 billion, or 2.5%, in September to $6.425 trillion. MMFs have increased by $743.9 billion, or 13.1%, over the past 12 months (through 9/30/24). Money funds' September asset increase follows an increase of $124.8 billion in August, $46.6 billion in July, $13.0 billion in June, $90.9 billion in May and $4.3 billion in April. They decreased $73.0 billion in March, but increased $55.1 billion in February, $82.4 billion in January, $34.9 billion in December and $213.9 billion in November. MMFs decreased $13.6 billion last October. Bond fund assets increased $75.1 billion to $5.111 trillion, and bond ETF assets surged to $1.75 trillion. (Note: Crane Data's separate and more comprehensive asset series shows money funds rising by $90.7 billion in October, through 10/28, to a record $6.856 trillion!)
ICI's monthly release states, "The combined assets of the nation's mutual funds increased by $470.81 billion, or 1.7 percent, to $28.45 trillion in September, 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 $14.03 billion in September, compared with an inflow of $3.74 billion in August.... Money market funds had an inflow of $143.23 billion in September, compared with an inflow of $107.41 billion in August. In September funds offered primarily to institutions had an inflow of $107.46 billion and funds offered primarily to individuals had an inflow of $35.77 billion."
The Institute's latest statistics show that Taxable MMFs and Tax Exempt MMFs were both higher from last month. Taxable MMFs increased by $157.8 billion in September to $6.295 trillion. Tax-Exempt MMFs increased $0.8 billion to $129.7 billion. Taxable MMF assets increased year-over-year by $730.9 billion (13.1%), and Tax-Exempt funds rose by $13.0 billion over the past year (11.1%). Bond fund assets increased by $75.1 billion (after increasing by $61.0 billion in August) to $5.111 trillion; they've increased by $583.2 billion (12.9%) over the past year.
Money funds represent 22.6% of all mutual fund assets (up 0.2% from the previous month), while bond funds account for 18.0%, according to ICI. The total number of money market funds was 263, down 5 from the prior month and down from 276 a year ago. Taxable money funds numbered 217 funds, and tax-exempt money funds numbered 46 funds.
ICI's "Month-End Portfolio Holdings" confirms a jump in Repo and Treasuries last month. Treasury holdings in Taxable money funds remained the largest composition segment last month, they increased $100.8 billion, or 4.2%, to $2.509 trillion, or 39.9% of holdings. Treasury securities have increased by $846.6 billion, or 50.9%, over the past 12 months. (See our Oct. 10 News, "October Money Fund Portfolio Holdings: Repo Surges, Reclaims Top Spot.")
Repurchase Agreements were the second largest composition segment this past month, increasing $128.6 billion, or 5.4%, to $2.501 trillion, or 39.7% of holdings. Repo holdings have decreased $271.2 billion, or -9.8%, over the past year. U.S. Government Agency securities were the third largest segment; they increased $22.4 billion, or 3.1%, to $744.4 billion, or 11.8% of holdings. Agency holdings have increased by $117.7 billion, or 18.8%, over the past 12 months.
Certificates of Deposit (CDs) remained in fourth place; they decreased by $35.6 billion, or -10.3%, to $311.2 billion (4.9% of assets). CDs held by money funds rose by $46.1 billion, or 17.4%, over 12 months. Commercial Paper remained in fifth place, up $1.4 billion, or 0.5%, to $272.8 billion (4.3% of assets). CP increased $61.7 billion, or 29.2%, over one year. Other holdings increased to $19.1 billion (0.3% of assets), while Notes (including Corporate and Bank) increased to $29.3 billion (0.5% of assets).
The Number of Accounts Outstanding in ICI's series for taxable money funds increased to 72.652 million, while the Number of Funds was down 6 at 217. Over the past 12 months, the number of accounts rose by 10.530 million and the number of funds decreased by 13. The Average Maturity of Portfolios was 30 days, down 3 days from August. Over the past 12 months, WAMs of Taxable money have increased by 4.
In other news, ignites writes "Fidelity Sued Over $351B Money Fund." They explain, "Fidelity has been sued for keeping certain clients in a pricier share class of its $351 billion Government Money Market Fund, rather than automatically moving them into a cheaper version that they were eligible to buy.... [Two] New York residents with Fidelity retirement accounts held retail shares of the money fund, even though they had account balances that exceeded the investment minimum to qualify them for the cheaper premium class shares, the complaint states. The premium share class has an investment minimum of $10,000 for retirement accounts and $100,000 for taxable brokerage accounts and offers an expense ratio cap of 32 basis points compared with 42 bps for the retail class."
The piece quotes, "Fidelity emphatically denies the allegations and will defend against the complaint vigorously.... Halley Josephs, Lisa Jing and Shawn Rabin, partners at Susman Godfrey, a law firm, represent [the clients]. 'Our clients are the first to assert these class wide claims involving Fidelity's largest money market mutual fund, and it is the result of months-long research and analysis into the failure of Fidelity and the fund's management to act in the best interests of the fund's shareholders,' Josephs said."
The ignites piece adds, "Fidelity is the largest provider of money market funds, with more than $1.4 trillion in such products as of Sept. 30, representing more than 20% of total market share, according to Pete Crane, president of Crane Data."
