The Investment Company Institute, the trade group representing mutual funds, reports that money market mutual fund assets increased by $13.59 billion to a record $3.468 trillion in the week ended March 19. This represents the 13th week in a row that money fund assets have increased. Year-to-date, money fund assets have grown by 10.3%, or $328 billion. Over the past 52 weeks, assets have skyrocketed by $1.04 trillion, or 42.6%.
Retail money fund assets increased by $14.8 billion to $1.261 trillion, but institutional assets decreased by $1.2 billion to $2.207 trillion. YTD, retail assets have increased by $99.3 billion, or 8.5%, while institutional assets have increased by $224 billion, or 11.3%.
Government money funds have led the surge recently, rising $142 billion, or 23.9%, on the institutional side and rising $30.2 billion, or 17.2%, on the institutional side. ICI shows Government Institutional funds now totalling $142.5 billion, or 33% of all institutional assets, and Government Retail assets totalling $205.2 billion, or 16% of all retail money fund assets.
Money market fund assets briefly declined due to a March 14 corporate tax payment date, but inflows have surged over the past two days as institutional money moves to delay the impact of lower rates. Both institutional and individual investors also continue their flight to safety and flight to liquidity, driving an unprecendented buildup in money fund assets.
