Money fund assets jumped in the last week of the year, making December the 7th monthly asset increase out of the past 8. MMFs will likely finish 2015 with a another small gain, the fourth year in a row that assets have increased (barely). Asset levels are now at their highest point since January 2011 The Investment Company Institute's weekly statistics show assets up $18 billion in December, and assets up $26 billion, or 1.0%, year-to-date. We review ICI's latest "Money Market Fund Assets" report, and their latest monthly "Trends in Mutual Fund Investing," below. We also discuss ICI's "Month-End Portfolio Holdings of Taxable Money Funds," which confirms that holdings of US Treasury Bills skyrocketed in November (and Agencies gained), while Commercial Paper, Repo, and CDs dropped. (See our December 10 News, "Dec. Portfolio Holdings: Treasuries Skyrocket; Repo, CD, CP Decline.")

ICI's latest weekly asset update says, "Total money market fund assets increased by $16.03 billion to $2.76 trillion for the eight-day period ended Wednesday, December 30, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $720 million and prime funds increased by $14.86 billion. Tax-exempt money market funds increased by $460 million."

The release explains, "Assets of retail money market funds increased by $5.17 billion to $939.10 billion. Among retail funds, government money market fund assets increased by $2.21 billion to $346.04 billion, prime money market fund assets increased by $2.48 billion to $408.63 billion, and tax-exempt fund assets increased by $490 million to $184.42 billion.... Assets of institutional money market funds increased by $10.87 billion to $1.82 trillion. Among institutional funds, government money market fund assets decreased by $1.49 billion to $874.77 billion, prime money market fund assets increased by $12.39 billion to $875.16 billion, and tax-exempt fund assets decreased by $30 million to $69.98 billion."

A Footnote adds, "In anticipation of the Securities and Exchange Commission's (SEC) new money market fund regulations, many advisers are changing their prime money market funds into government money market funds. As a result, there have been, and will continue to be, large shifts in assets from prime funds to government funds before the October 2016 deadline." (There were no shifts in the latest week, but watch for BlackRock's BIF, FFI and Ready Assets funds to be reclassified by ICI and Crane Data in the coming week.)

ICI's "Trends in Mutual Fund Investing November 2015" confirms a minor increase in MMF assets in November, up $4.8 billion, or 0.2%, to $2.720 trillion. Assets have increased in 6 of the last 7 months (it'll be 7 of 8 once December is official) -- assets were up $45.2 billion in October, down $5.1 billion in September, and up $8.1 billion in August, $45.9 billion in July, $12.9 billion in June, and $38.0 billion in May. In the 12 months through Nov. 30, 2015, money fund assets are up $74.4 billion, or 2.8%, according to ICI.

It says, "The combined assets of the nation's mutual funds decreased by $23.65 billion, or 0.1 percent, to $15.94 trillion in November.... Bond funds had an outflow of $5.06 billion in November, compared with an inflow of $4.36 billion in October.... Money market funds had an inflow of $2.84 billion in November, compared with an inflow of $45.52 billion in October. In November funds offered primarily to institutions had an inflow of $2.45 billion and funds offered primarily to individuals had an inflow of $384 million." Money funds now represent 17.1% of all mutual fund assets, while bond funds represent 21.7%. The total number of money market funds dropped to 496 in November, from 502 the previous month.

ICI's latest "Portfolio Holdings" summary shows that US Treasury Bills skyrocketed and Agencies gained, while CDs, Repo, and CP dropped. CDs (including Eurodollar CDs) remained the largest portfolio segment, despite decreasing $32.4B, or 5.4%, in November to $567.6 billion. (ICI's CD totals likely include Time Deposits, which Crane Data and the SEC categorize as "Other" -- we reported a decrease in Other/TDs in November.) CDs make up 23.0% of all holdings. Repurchase agreement stayed the second largest portfolio segment, but these also fell, declining $40.7 billion, or 6.9%, in November to $547.7 billion. Repo represents 22.1% of taxable MMF holdings.

Treasury Bills & Securities were the big gainer, jumping ahead of Agencies into third place among composition segments. Treasuries increased a massive $98.6 billion, or 24.4%, in November to $503.1 billion (20.3% of assets). This reflects the shift of Prime funds to Government funds, as well as an increase in T-bill issuance following the raising of the Treasury debt ceiling. U.S. Government Agency Securities continued moving higher, increasing $2.0 billion, or 0.5%, to $434.7 billion (17.6% of assets). Commercial Paper was still fifth, declining $15.3B, or 4.6%, to $319.8 billion (12.9% of assets). Notes (including Corporate and Bank) dropped by $2.3 billion, or 2.9%, to $75.8 billion (3.1% of assets), and Other holdings (including Cash Reserves) fell $8.7 billion to stood at $24.3 billion.

The Number of Accounts Outstanding in ICI's series for taxable money funds decreased by 24.6 thousand to 23.213 million, while the Number of Funds fell by 5 to 345. Over the past 12 months, the number of accounts fell by 373.7 thousand and the number of funds declined by 20. The Average Maturity of Portfolios dropped to 35 days in November, down 3 days from October. Over the past 12 months, WAMs of Taxable money funds have declined by 11 days. At 35, WAM's dropped back to September 2015 levels, which was the lowest level since June 2010, according to our analysis of ICI's data.

Note: Crane Data also updated its December MFI XLS last week to reflect the 11/30/15 composition data and maturity breakouts for our entire fund universe. (Visit our Content Center and the latest Money Fund Portfolio Holdings download page to access our December Money Fund Portfolio Holdings and the latest files.)

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