Money market mutual fund assets broke the $7.6 trillion level on Friday for the first time ever, and they hit a record $7.633 trillion on Tuesday (9/3), according to Crane Data's Money Fund Intelligence Daily. Assets jumped by $30.7 billion on Tuesday, Sept. 2, after surging by $132.0B in August. Year-to-date, money fund assets have increased by $459.3 billion (6.4%), and over the past year assets have increased by $1.018 trillion, or 15.4%. MMF asset totals first crossed the $7.0 trillion threshold last November, and they've since marked a series of new highs: $7.1 trillion on December 3, $7.2 trillion on January 2, $7.3 trillion on February 26, $7.4 trillion on May 30, $7.5 trillion on August 4, and $7.6 trillion on August 29. (Note: With just under 3 weeks to go, register ASAP for our European Money Fund Symposium, which is Sept. 22-23, 2025 in Dublin!)
In other news, a press release titled, "Northern Trust Asset Management Launches US Dollar Treasury Strategy," tells us, "Northern Trust Asset Management, a global leader in liquidity solutions with US$336 billion in short term assets (as of 30 June 2025), has expanded its flagship money market product offering, aimed at European investors, with the launch of its NT U.S. Treasury Liquidity Strategy. This follows the successful launch of its onshore US Treasury Strategy in July 2024, which has amassed US$5.4 billion dollars in assets (as of 15th August 25)." According to Crane Data's MFI International, which tracks "offshore" & European money market funds, Northern ranks 13th overall out of 21 managers with $47.1 billion (as of Sept. 2).
The release explains, "The Public Debt CNAV strategy seeks to generate current income while providing a low-risk capital preservation investment option that maintains liquidity over the short-to-medium term. Euro and Sterling equivalents have also been developed for launch in 2026."
Dan Farrell, head of International Fixed Income, Northern Trust Asset Management, comments, "US Treasuries remain a cornerstone of stability in periods of market volatility, and a dedicated public debt money market fund provides investors with a secure, highly liquid vehicle that enhances diversification within their short-term US dollar allocations. The launch of our US Treasury Liquidity strategy enables us to provide a full spectrum offering in response to the increasing demand we are seeing from investors and supports our strategy for growth."
The release adds, "Northern Trust Asset Management is entrusted by institutions worldwide to help them achieve their liquidity goals. Leveraging its more than 40 years of actively managing solutions, it aims to optimize liquidity and deliver client value in every market cycle."
Separately, Federated Hermes' Deborah Cunningham writes about "Looking on the bright side" in her most recent monthly commentary. She says, "Football season is upon us, but the biggest end-around is not on the field but in Washington as President Trump is trying another way to influence the Federal Reserve. But before I address his attempt to remove Fed Governor Lisa Cook, I'd like to discuss some positives in the money markets."
The commentary explains, "It's no wonder that the financial media, advisors, investors and, of course, firms within the industry have focused on the attractive yields of stable value investments over the last three years. It's been an extraordinary run, which we think could continue even after the Fed eases rates further."
It continues, "But less noticed is the excellent state of the fundamentals. I'd argue that overnight trading is the healthiest since 2008, judging by the robust supply brought or sponsored by traditional counterparties that has greatly reduced the use of the Fed's Reverse Repo and the Standing Repo facilities. Banks are the major players, and their credit continues to be high, with low nonperforming assets, fewer charge-offs and elevated liquidity. The whole system works best in conditions like this and should inspire continued confidence for cash managers."
Discussing "New Kids on the Blockchain," Cunningham states, "As I often say, money market managers are wise to be conservative. With goals of liquidity, stability and preservation of principal, we must tread carefully when approaching new technology. Blockchain structure has been around for decades, of course, but the cash management industry has only recently developed products that use it. With that cautious approach and extensive evaluation, we are proud to participate with BNY and Goldman Sachs in their initiative to offer tokens that represent the value of the shares, with BNY using blockchain to maintain a mirror record of share ownership. It was innovation that created the first money market funds, and digitalization has the potential to enhance the growth prospects of the liquidity industry."
She adds, "[W]e think the Guiding and Establishing National Innovation for US Stablecoins Act, or GENIUS Act, provides necessary regulation of the stablecoin market. Again, with appropriate caution, it should lead to more opportunities for liquidity products, particularly government money market funds, given the new requirements for permitted stablecoins in the US to be backed one-to-one by certain high-quality liquid assets."
Finally, Cunningham writes, "In the tax-free money fund space, the already steep municipal yield curve could get steeper if/when the Fed resumes cutting rates. This should mean increased supply, with 1-year notes already trending toward the third straight year of growth exceeding 10%. With the uncertainty of the Trump administration's tax and spending bill behind us, we think demand from technical factors, such as the reinvestment of matured securities and coupon payments, will weaken, which historically produces stronger taxable equivalent performance for SIFMA."
