The Investment Company Institute released its latest weekly "Money Market Mutual Fund Assets," and its latest monthly "Trends in Mutual Fund Investing" and "Month-End Portfolio Holdings of Taxable Money Funds" updates yesterday. The first report shows that `money fund assets were flat in the latest week, while the second showed that assets were also flat in February. ICI's other monthly report confirmed that Treasury and Agency holdings fell while Repo and CDs moved higher last month. (See our March 10 News, "March Money Fund Portfolio Holdings Show Continued Credit Recovery.") We review these latest reports, as well as March month-to-date assets, below.
ICI's weekly assets report shows both overall and Prime money fund assets down slightly, but roughly flat. It says, "Total money market fund assets decreased by $110 million to $2.65 trillion for the week ended Wednesday, March 29, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $480 million and prime funds decreased by $150 million. Tax-exempt money market funds decreased by $450 million." Total Government MMF assets, which include Treasury funds too stand at $2.126 trillion (80.1% of all money funds), while Total Prime MMFs stand at $397.8 billion (15.0%). Tax Exempt MMFs total $130.0 billion, or 4.9%.
It explains, "Assets of retail money market funds increased by $360 million to $984.26 billion. Among retail funds, government money market fund assets increased by $330 million to $603.57 billion, prime money market fund assets increased by $390 million to $255.18 billion, and tax-exempt fund assets decreased by $370 million to $125.51 billion." Retail assets account for over a third of total assets, or 37.1%, and Government Retail assets make up 61.3% of all Retail MMFs.
The release continues, "Assets of institutional money market funds decreased by $470 million to $1.67 trillion. Among institutional funds, government money market fund assets increased by $150 million to $1.52 trillion, prime money market fund assets decreased by $540 million to $142.64 billion, and tax-exempt fund assets decreased by $80 million to $4.54 billion." Institutional assets account for 62.9% of all MMF assets, with Government Inst assets making up 91.2% of all Institutional MMFs.
ICI's latest "Trends in Mutual Fund Investing - February 2017" shows a $0.4 billion increase in money market fund assets in February to $2.682 trillion. The increase follows an increase of $46.6 billion in January, $6.5 billion in December and $55.3 billion in November, but a decrease of $12.1 billion in Oct. and $51.1 billion in Sept. In the 12 months through Feb. 28, money fund assets were down $92.1 billion, or -3.3%. (Month-to-date in March through 3/30/17, our Money Fund Intelligence Daily shows total assets down by $20.4 billion. `Govt MMFs are down $25.2 billion, while Prime MMFs are up $3.4 billion.)
The monthly report states, "The combined assets of the nation's mutual funds increased by $338.17 billion, or 2.0 percent, to $16.92 trillion in February, 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 $23.69 billion in February, compared with an inflow of $21.57 billion in January.... Money market funds had an inflow of $197 million in February, compared with an outflow of $48.08 billion in January. In February funds offered primarily to institutions had an outflow of $46 million and funds offered primarily to individuals had an inflow of $243 million."
The latest "Trends" shows that Taxable MMFs were flat while Tax-Exempt MMFs decreased slightly in February 2017. Taxable MMFs increased by $0.8 billion In February, after decreasing $46.8 billion in January, and rising $6.3 billion in December and $53.4 billion in Nov. Tax-Exempt MMFs decreased $0.3 billion in February, after adding $0.1 billion in Jan., $0.3 billion in Dec., and $1.9 billion in Nov.
Over the past year through 2/28/17, MMF assets decreased by $92.1 billion, or -3.3%, with a $17.3 billion increase in Taxable funds and a $109.2 billion decrease in Tax-Exempt funds. Money funds now represent 15.9% (down from 16.2% last month) of all mutual fund assets, while bond funds represent 22.1% <b:>`_. The total number of money market funds was down 1 to 419 in February, and down from 479 a year ago. (Taxable money funds have declined from 336 to 319 and Tax-exempt money funds have declined from 143 to 100 over the last year.)
ICI's Portfolio Holdings confirmed another big drop in Treasuries and Agencies in February. Repo increased again, and remained the largest portfolio segment, up by $26.3 billion, or 3.4%, to $791.5 billion or 31.0% of holdings. Repo increased by $249.5 billion over the past 12 months, or 46.0%. Treasury Bills & Securities remained in second place among composition segments, declining $24.0 billion, or -3.2%, to $736.1 billion, or 28.8% of holdings. Treasury holdings rose by $221.7 billion, or 43.1%, over the past year. U.S. Government Agency Securities remained in third place, but fell $20.5 billion, or -2.9%, to $691.9 billion or 27.1% of holdings. Govt Agency holdings rose by $215.7 billion, or 45.3%, over the past 12 months.
Certificates of Deposit (CDs) stood in fourth place; they increased $6.4 billion, or 3.7%, to $181.3 billion (7.1% of assets). CDs held by money funds fell by $410.5 billion, or -69.4%, over 12 months. Commercial Paper remained in fifth place but increased $1.6B, or 1.4%, to $113.2 billion (4.4% of assets). CP plummeted by $199.9 billion, or -63.8%, over one year. Notes (including Corporate and Bank) were up by $2.6 billion, or 39.2%, to $9.3 billion (0.4% of assets), and Other holdings inched down to $32.0 billion.
The Number of Accounts Outstanding in ICI's series for taxable money funds increased by 164.6 thousand to 25.481 million, while the Number of Funds was flat at 319. Over the past 12 months, the number of accounts rose by 2.758 million and the number of funds declined by 17. The Average Maturity of Portfolios was 40 days in Feb., down 2 days from Jan. Over the past 12 months, WAMs of Taxable money funds have lengthened by 1 day.
