The Investment Company Institute, the trade association for mutual funds, released its weekly "Money Market Mutual Fund Assets," its monthly "Trends in Mutual Fund Investing" and its "Month-End Portfolio Holdings of Taxable Money Funds" updates yesterday. ICI shows that money fund assets rebounded in the latest week (after dropping the two weeks prior but rising for 7 weeks before this), ending the year approximately flat. The second release shows both taxable and tax-exempt money fund assets up in November, while the third confirms earlier reports of continued jumps in Treasury and Agency holdings and declines in Repo last month. (See our Dec. 12 News, "December Portfolio Holdings: Treasuries Surpass Repo as Largest Piece.")
The latest "MMF Assets report says, "Total money market fund assets increased by $15.93 billion to $2.73 trillion for the week ended Wednesday, December 28, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $14.83 billion and prime funds increased by $1.48 billion. Tax-exempt money market funds decreased by $370 million."
It continues, "Assets of retail money market funds increased by $820 million to $983.21 billion. Among retail funds, government money market fund assets increased by $220 million to $604.25 billion, prime money market fund assets increased by $650 million to $252.40 billion, and tax-exempt fund assets decreased by $50 million to $126.56 billion.... Assets of institutional money market funds increased by $15.11 billion to $1.74 trillion. Among institutional funds, government money market fund assets increased by $14.61 billion to $1.62 trillion, prime money market fund assets increased by $820 million to $123.95 billion, and tax-exempt fund assets decreased by $320 million to $4.41 billion." Total money fund assets are down year-to-date in 2016 by $31.0 billion, or 1.1%.
ICI's latest "Trends in Mutual Fund Investing - November 2016" shows a $55.3 billion increase in money market fund assets in Nov. to $2.721 trillion. The increase follows a decrease of $12.1 billion in Oct. and $51.1 billion in Sept., and an increase of $18 billion in August and $14 billion in July. In the 12 months through Nov. 30, money fund assets were perfectly flat -- up a mere $1.2 billion, or 0.0%. (Month-to-date in Dec. through 11/28, our Money Fund Intelligence Daily shows total assets up by $21.8 billion with Prime MMFs up $772 million, Tax Exempt MMFs up $2.5 billion, and Govt MMFs up $18.5 billion.)
The monthly report states, "The combined assets of the nation’s mutual funds increased by $158.90 billion, or 1.0 percent, to $16.24 trillion in November, 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 outflow of $16.51 billion in November, compared with an inflow of $10.16 billion in October.... Money market funds had an inflow of $54.41 billion in November, compared with an outflow of $8.20 billion in October. In November funds offered primarily to institutions had an inflow of $31.89 billion and funds offered primarily to individuals had an inflow of $22.52 billion."
The latest "Trends" shows that both Taxable MMFs and Tax-Exempt MMFs increased in November. Tax-Exempt MMFs added $1.9 billion, after falling $0.4 billion in October and $15.3 billion in September. Taxable MMFs increased by $53.4 billion, after dropping $11.7 billion the prior month. Year-to-date through Nov. 30, MMFs have had $13.9 billion in outflows, with $13.8 billion flowing out of Taxable funds and just $95 million in outflows from Tax-Exempt funds. Money funds now represent 16.7% (up from 16.5%) of all mutual fund assets, while bond funds represent 22.4%. The total number of money market funds was flat at 423 in November, but down from 495 a year ago. (Tax exempt money funds have declined from 151 to 102 over the last year.)
ICI's Portfolio Holdings confirms another jump in Treasuries and increase in Agencies in November, while Repo showed the only large decline. Treasury Bills & Securities moved into first place among composition segments, rising $82.8 billion, or 10.8%, to $846.9 billion, or 32.7% of holdings. Repo fell to become the second largest portfolio segment, down by $21.1 billion, or 2.7%, to $771.5 billion or 29.8% of holdings. U.S. Government Agency Securities remained in third place, gaining $19.5 billion, or 2.9%, to $684.1 billion or 26.4% of holdings. Government funds and government-affiliated holdings continue to hold the vast majority of money fund assets following 2016's money fund reforms.
Certificates of Deposit (CDs) stood in fourth place; they increased $1.4 billion, or 0.9%, to $153.9 billion (5.9% of assets). Commercial Paper remained in fifth place and increased $1.4B, or 1.4%, to $109.4 billion (4.2% of assets). Notes (including Corporate and Bank) were up by $1.9 billion, or 23.1%, to $10.1 billion (0.4% of assets), and Other holdings fell to $35.8 billion.
The Number of Accounts Outstanding in ICI's series for taxable money funds increased by 404 thousand to 25.386 million, while the Number of Funds was flat at 321. Over the past 12 months, the number of accounts rose by 2.173 million and the number of funds declined by 23. The Average Maturity of Portfolios was 43 days in Nov., up 1 day from Oct. Over the past 12 months, WAMs of Taxable money funds have lengthened by 8 days. (Visit our Content Center and the latest Money Fund Portfolio Holdings download page to access our Dec. Money Fund Portfolio Holdings and the latest files.)
