The Investment Company Institute's most recent official monthly asset flow numbers verify that money fund assets fell sharply in June 2012. ICI's latest monthly "Trends in Mutual Fund Investing: June 2012" showed that money market mutual fund assets declined by $45.8 billion in June to $2.514 trillion. Money fund assets now account for 20.7% of overall mutual fund assets. Bond fund assets continued higher, rising by $33.9 billion to $3.169 trillion, or 26.0% of assets. ICI's "Month-End Portfolio Holdings of Taxable Money Market Funds showed declines in every segment except Treasuries and Goverment Agencies in June. The Institute also shows (separately) in a "Prime Money Market Funds' Holdings Update" that "Eurozone Holdings Drop Close to December Levels."
ICI's latest "Trends" says, "The combined assets of the nation's mutual funds increased by $208.5 billion, or 1.7 percent, to $12.171 trillion in June, 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 $16.25 billion in June, compared with an inflow of $18.96 billion in May.... Money market funds had an outflow of $46.40 billion in June, compared with an inflow of $2.01 billion in May. Funds offered primarily to institutions had an outflow of $40.74 billion. Funds offered primarily to individuals had an outflow of $5.66 billion."
In July, month-to-date through 7/29, assets have rebounded by $27.9 billion, according to Crane Data's Money Fund Intelligence Daily. YTD, we show asset declines of $136.1 billion, or 5.3%. Our daily series shows the rebound concentrated in Prime Institutional funds in July; they've regained $31.1 billion, or 4.0%, month-to-date.
ICI's Portfolio Holdings series shows Repurchase Agreements dropping in June after rising in April and May (down $48.9 billion to $519.1 billion). Repos remain the largest portfolio holding among taxable money funds with 23.1% of assets. Treasury Bills & Securities remained the second largest segment at 20.2%; holdings in T-Bills and other Treasuries rose by $21.0 billion to $453.9 billion. Holdings of Certificates of Deposits, which rank third among portfolio holdings, decreased by $8.2 billion to $389.9 billion (17.4%).
U.S. Government Agency Securities rebounded by $21.5 billion to reclaim the fourth largest segment of taxable money fund portfolio holdings with $341.6 billion, or 15.2% of assets. Commercial Paper declined by $18.5 billion to $333.3 billion, which dropped CP to the fifth largest composition sector with 14.8% of assets. Notes (including Corporate and Bank) accounted for 5.3% of assets ($118.9 billion), while Other holdings accounted for 3.7% ($83.5 billion).
The Number of Accounts Outstanding in ICI's Holdings series for taxable money funds decreased to 25.26 million from 25.44 million the month before, while the Number of Funds fell by 4 to 413. The Average Maturity of Portfolios remained flat at 46 days in June. (Note that the archived version of our Money Fund Intelligence XLS monthly spreadsheet -- see our Content Page to download -- now has its Portfolio Composition and Maturity Distribution totals updated as of June 30, 2012. We revise these following the monthly publication of our Money Fund Portfolio Holdings data.)
Finally, ICI's latest "Prime Money Market Funds' Holdings Update: Eurozone Holdings Drop Close to December Levels" says, "Prime money market funds reduced their holdings of eurozone issuers to 12.2 percent of assets in June from 15.5 percent of assets in May (chart). The decline of more than 3 percentage points puts eurozone holdings close to the trough of 12.0 percent seen in December 2011. The June decline was driven primarily by reductions in French, German, and Dutch holdings (table), and 80 percent of French holdings mature in 30 days or less."
