The Federal Reserve released its latest quarterly "Z.1 Financial Accounts of the United States" statistical survey (a.k.a. "Flow of Funds") Friday, and among the 4 tables it includes on money market mutual funds, the Second Quarter 2026 edition shows that Total MMF Assets increased by $152 billion to $8.441 trillion in Q2'26. The Household Sector, by far the largest investor segment with $5.327 trillion, saw the biggest asset increase in Q2, followed by Mutual Funds and Nonfinancial Corporate Business. 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 Hedge Funds categories in Q2 2026. (Note: We look forward to seeing those of you going to our European Money Fund Symposium in Paris, Sept. 24-25! Safe travels!)
Households, Mutual Funds, Nonfinancial Corporate Business, Other Financial Business, Hedge Funds, Private Pension Funds, Rest of the World, Life Insurance Companies, Exchange-traded funds, Nonfinancial Noncorporate Business, State & Local Governments, Interval and Tender Offer Funds and Private Debt Funds categories saw asset increases in Q2, while Property-Casualty Insurance and State & Local Govt Pension Funds saw asset decreases last quarter. Over the past 12 months, the Household Sector, Nonfinancial Corporate Business and Other Financial Business categories showed the biggest asset increases, while Property-Casualty Insurance saw the only asset decrease.
The Fed's "Table F521.s," "Money Market Fund Shares," shows that total assets increased by $152 billion, or 1.8%, in the second quarter to $8.441 trillion. The largest segment, the Household sector, totals $5.327 trillion, or 63.1% of assets. The Household Sector increased by $66 billion, or 1.3%, in the quarter. Over the past 12 months through June 30, 2026, Household assets were up $588 billion, or 12.4%.
Nonfinancial Corporate Businesses, the second-largest segment according to the Fed's data series, held $1.120 trillion, or 13.3% of the total. Assets here increased by $18 billion in the quarter, or 1.6%, and they've increased by $128 billion, or 13.0%, over the past year. Other Financial Business was the third-largest investor segment with $613 billion, or 7.3% of money fund shares. This category rose $15 billion, or 2.6%, in the latest quarter. Other Financial Business, which we believe includes Securities Lending, has increased by $114 billion, or 22.8%, over the previous 12 months.
The Mutual Funds category was the fourth-largest investor segment with $260 billion, or 3.1%, while the fifth-largest segment, Private Pension Funds, held $242 billion (2.9%), and the sixth-largest category, Rest of the World, held $234 billion (2.8%). Nonfinancial Noncorporate Business held $161 billion (1.9%), Hedge Funds held $121 billion (1.4%), Life Insurance Companies held $115 billion (1.4%), State & Local Governments held $83 billion (1.0%), Exchange-traded Funds held $60 billion (0.7%), Property-Casualty Insurance held $50 billion (0.6%), State & Local Govt Pension Funds held $37 billion (0.4%), Interval and Tender Offer Funds held $13 billion (0.2%) and Private Debt Funds held $7 billion (0.1%) according to the Fed's Z.1 breakout.
The Fed's "Flow of Funds" Table S123.s shows "Money Market Mutual Funds" largely invested in "Loans (Security Repurchase Agreements)" with $3.075 trillion, or 36.4%, and "Debt Securities," or Credit Market Instruments, with $4.978 trillion, or 59.0% of the total. Debt securities include: Open market paper ($314 billion, or 3.7%; we assume this is CP), Treasury securities ($3.282 trillion, or 38.9%), Agency and GSE-backed securities ($1.208 trillion, or 14.3%), Municipal securities ($155 billion, or 1.8%) and Corporate and foreign bonds ($20 billion, or 0.2%).
Another large MMF position in the Fed's series includes `Time and savings deposits ($307 billion, or 3.6%). Money funds also hold minor positions in Miscellaneous assets ($82 billion, or 1.0%) and Foreign deposits ($0.0 billion). Note: The Fed also lists "Variable Annuity Money Funds," which currently total $50 billion.
During Q2, Debt Securities were down $22 billion. This subtotal included: Open Market Paper (up $12 billion), Treasury Securities (down $145 billion), Agency- and GSE-backed Securities (up $107 billion), Corporate & Foreign Bonds (down $2 billion) and Municipal Securities (up $5 billion). In the second quarter of 2026, Loans (Security Repurchase Agreements) were up $143 billion, Foreign Deposits were unchanged, Time & Savings Deposits were up $24 billion, and Miscellaneous Assets were up $8 billion.
Over the 12 months through 6/30/26, Debt Securities were up $909 billion, which included Open Market Paper (up $2B), Treasury Securities (up $668B), Agencies (up $215B), Municipal Securities (up $14B), and Corporate and Foreign Bonds (up $11B). Foreign Deposits fell $1B and Time and Savings Deposits increased $3B. Loans (Security Repurchase Agreements) were down $31B over the year, while Miscellaneous Assets rose $79B.
The S123.s table shows `Stable NAV money market funds with $8,017 billion, or 95.0% of the total (up $119.7B or 1.5% in Q2 and up $880.9B or 12.3% over 1-year), and Floating NAV money market funds with $424 billion, or 5.0% (up $32.1B or 8.2% in Q2 and up $79.2B or 23.0% over 1-year). Government money market funds total $6.894 trillion, or 81.7% (up $137.9B or 2.0% in Q2 and up $837.7B or 13.8% over 1-year), `Prime money market funds total $1.394 trillion, or 16.5% (up $11.6B or 0.8% in Q2 and up $110.8B or 8.6% over 1-year) and Tax-exempt money market funds $154B, or 1.8% (up $2.3B or 1.5% in Q2 and up $11.7B or 8.2% last year).
Note that the Federal Reserve renumbered its Z.1 tables with the prior release. The report's "Release Highlights" said, "Effective with this release, all Z.1 Financial Accounts of the United States release tables have been renumbered to more closely align with the System of National Accounts (SNA) classification hierarchies for sectors and instruments." The Fed added, "Money market fund shares (tables F521.t and F521.s) have been moved to immediately precede mutual fund shares (tables F522.1.t and F522.1.s)." The former Table L.206 is now F521.s, and the former L.121 "Money market funds" sector table is now S123.s.
Also note that the Federal Reserve made several changes with the latest Z.1 release. The report's "Release Highlights" says, "Private credit has been incorporated into the Financial Accounts, with data beginning 2012:Q4." It also says, "Hedge funds have been incorporated into the Financial Accounts, with data beginning 2012:Q4." The Fed adds that the integration adds three new sectors for U.S.-domiciled private credit lending vehicles, two new financial instrument categories for private credit, a new hedge funds sector and a new hedge fund shares instrument.
