ICI's latest "Money Market Fund Assets" report shows money fund assets rebounded after falling sharply for two weeks in a row. Money fund assets turned positive for the year-to-date for the first time in 2018 two weeks ago, but they fell back into the red last week and climbed to almost flat this week. MMFs have decreased by $13 billion, or -0.5%, YTD, but they've increased by $207 billion, or 7.5%, over 52 weeks. We review the latest weekly assets, as well as ICI's monthly Trends and Portfolio Composition totals below. (Note: Conference materials and recordings from this week's Money Fund Symposium are now available to attendees and Crane Data subscribers via our Money Fund Symposium 2018 Download Center. Thanks again to those who attended and supported our event, and mark your calendars for next year's Symposium, which will be in Boston, June 24-26, 2019.)
ICI writes, "Total money market fund assets increased by $22.65 billion to $2.83 trillion for the week ended Wednesday, June 27, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $21.33 billion and prime funds increased by $984 million. Tax-exempt money market funds increased by $342 million." Total Government MMF assets, which include Treasury funds too, stand at $2.213 trillion (78.3% of all money funds), while Total Prime MMFs stand at $476.5 billion (16.9%). Tax Exempt MMFs total $135.8 billion, or 4.8%.
They explain, "Assets of retail money market funds decreased by $2.25 billion to $1.03 trillion. Among retail funds, government money market fund assets decreased by $3.31 billion to $627.32 billion, prime money market fund assets increased by $829 million to $272.58 billion, and tax-exempt fund assets increased by $231 million to $127.56 billion." Retail assets account for over a third of total assets, or 36.4%, and Government Retail assets make up 61.1% of all Retail MMFs.
ICI's release adds, "Assets of institutional money market funds increased by $24.90 billion to $1.80 trillion. Among institutional funds, government money market fund assets increased by $24.63 billion to $1.59 trillion, prime money market fund assets increased by $155 million to $203.87 billion, and tax-exempt fund assets increased by $111 million to $8.18 billion." Institutional assets account for 63.6% of all MMF assets, with Government Inst assets making up 88.2% of all Institutional MMFs.
The Investment Company Institute also released its latest monthly "Trends in Mutual Fund Investing" report yesterday. Their numbers confirm that assets jumped in May after being flat in April. (Month-to-date in June through 6/27 assets have decreased by $27.4 billion, according to our MFI Daily.) ICI's latest Portfolio Holdings totals show a sharp drop in Treasury holdings and a jump in Repo in April. We review ICI's latest Trends and Portfolio Composition statistics below, and we also review our latest Weekly Money Fund Portfolio Holdings data.
The latest monthly "Trends in Mutual Fund Investing" report from ICI confirm that money fund assets jumped in May after a relatively flat April and a big drop in March. ICI's "May 2018 - Trends" shows a $58.3 billion jump in money market fund assets in May to $2.851 trillion. This follows a $0.4 billion decrease in April, a $50.1 billion decrease in March, and a $37.5 billion increase in February. In the 12 months through May 31, money fund assets have increased by $196.7 billion, or 7.4%.
ICI's monthly report states, "The combined assets of the nation’s mutual funds increased by $246.35 billion, or 1.3 percent, to $18.94 trillion in May, 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."
It explains, "Bond funds had an inflow of $7.10 billion in May, compared with an inflow of $6.57 billion in April.... Money market funds had an inflow of $56.41 billion in May, compared with an outflow of $2.20 billion in April. In May funds offered primarily to institutions had an inflow of $45.99 billion and funds offered primarily to individuals had an inflow of $10.42 billion."
The latest "Trends" shows that both Taxable and Tax Exempt MMFs gained assets last month. Taxable MMFs increased by $51.6 billion in May to $2.712 trillion, after increasing by $0.8 billion in April, decreasing by $47.4 billion in March, and increasing in February. Tax-Exempt MMFs increased $6.8 billion in May to $138.8 billion. Over the past year through 5/31/18, Taxable MMF assets increased by $87.0 billion (7.4%) while Tax-Exempt funds rose by $9.7 billion over the past year (7.5%). Bond fund assets decreased by $19.5 billion in May to $4.104 trillion; they rose by $235.0 billion (6.1%) over the past year.
Money funds now represent 15.1% (up from 14.9% the previous month) of all mutual fund assets, while bond funds represent 21.7%, according to ICI. The total number of money market funds fell by one to 382 in May, down from 417 a year ago. (Taxable money funds fell by one to 298 funds. Tax-exempt money funds were flat at 84 funds over the last month.)
ICI also released its latest "Month-End Portfolio Holdings of Taxable Money Funds," which confirmed another drop in Treasuries and jump in Repos in May. Treasuries which lost their position as the largest portfolio segment two months ago, fell by $31.5 billion, or -4.1%, to $741.4 billion or 27.3% of holdings. Treasury Bills & Securities have increased by $85.1 billion over the past 12 months, or 13.0%. (See our June 12 News, "June Money Fund Portfolio Holdings: Repo Jumps Again, Treasuries Fall.")
Repurchase Agreements remained in first place among composition segments; they increased by $64.9 billion, or 7.4%, to $940.2 billion, or 34.7% of holdings. Repo holdings have risen by $43.5 billion, or 4.9%, over the past year. U.S. Government Agency Securities remained in third place; they rose by $4.1 billion, or 0.6%, to $660.7 billion, or 24.4% of holdings. Agency holdings have risen by $18.5 billion, or 2.9%, over the past 12 months.
Certificates of Deposit (CDs) stood in fourth place; they decreased $10.8 billion, or -5.9%, to $173.3 billion (6.4% of assets). CDs held by money funds have fallen by $18.6 billion, or -9.7%, over 12 months. Commercial Paper remained in fifth place, increasing $10.1B, or 6.4%, to $168.6 billion (6.2% of assets). CP has increased by $47.2 billion, or 38.9%, over one year. Notes (including Corporate and Bank) were down by $95 million, or -1.6%, to $6.0 billion (0.2% of assets), and Other holdings increased to $21.1 billion.
The Number of Accounts Outstanding in ICI's series for taxable money funds decreased by 219.5 thousand to 31.994 million, while the Number of Funds declined to 298. Over the past 12 months, the number of accounts rose by 6.322 million and the number of funds decreased by 19. The Average Maturity of Portfolios was 29 days in May, down 1 day from April. Over the past 12 months, WAMs of Taxable money funds have shortened by 3 days.
