The Investment Company Institute released its latest weekly "Money Market Fund Assets" and its latest monthly "Trends in Mutual Fund Investing" reports yesterday. The former shows that assets jumped in the latest week, after plunging the prior week, while the latter confirms that MMF assets rose strongly again last month after breaking the $3.0 trillion level in December. Assets increased by $45.5 billion in February to $3.091 trillion. This follows an increase of $8.2 billion in January, $71.8 billion in December and $80.4 billion in November. In the 12 months through Feb. 28, 2019, money fund assets have increased by $247.5 billion, or 8.7%. We review ICI's latest weekly and monthly statistics below.
They write, "Total money market fund assets increased by $36.53 billion to $3.10 trillion for the week ended Wednesday, March 27, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $41.29 billion and prime funds decreased by $3.70 billion. Tax-exempt money market funds decreased by $1.06 billion." ICI's weekly series shows Institutional MMFs surging $34.2 billion while Retail MMFs inched higher by $2.32 billion. Total Government MMF assets, including Treasury funds, stood at $2.333 trillion (75.2% of all money funds), while Total Prime MMFs fell to $629.3 billion (20.3%). Tax Exempt MMFs totaled $138.7 billion, or 4.5%.
ICI states, "Assets of retail money market funds increased by $2.32 billion to $1.21 trillion. Among retail funds, government money market fund assets increased by $2.86 billion to $697.43 billion, prime money market fund assets increased by $355 million to $382.53 billion, and tax-exempt fund assets decreased by $897 million to $129.24 billion." Retail assets account for over a third of total assets, or 39.0%, and Government Retail assets make up 57.7% of all Retail MMFs.
The release adds, "Assets of institutional money market funds increased by $34.22 billion to $1.89 trillion. Among institutional funds, government money market fund assets increased by $38.44 billion to $1.64 trillion, prime money market fund assets decreased by $4.05 billion to $246.75 billion, and tax-exempt fund assets decreased by $166 million to $9.49 billion." Institutional assets accounted for 61.0% of all MMF assets, with Government Institutional assets making up 86.5% of all Institutional MMF totals.
ICI's "Trends: February 2019" states, "The combined assets of the nation's mutual funds increased by $425.50 billion, or 2.3 percent, to $19.08 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."
It explains, "Bond funds had an inflow of $35.90 billion in February, compared with an inflow of $14.42 billion in January.... Money market funds had an inflow of $41.17 billion in February, compared with an inflow of $4.54 billion in January. In February funds offered primarily to institutions had an inflow of $35.02 billion and funds offered primarily to individuals had an inflow of $6.15 billion."
The latest statistics shows that Taxable MMFs gained assets, but Tax Exempt MMFs lost assets last month. Taxable MMFs increased by $47.9 billion in February to $2.952 trillion. Tax-Exempt MMFs decreased $2.4 billion in February to $138.3 billion. Taxable MMF assets increased year-over-year by $245.2 (9.1%) while Tax-Exempt funds rose by $2.3 billion over the past year (1.7%). Bond fund assets increased by $51.8 billion in February (1.2%) to $4.185 trillion; they've risen by $117.1 billion (2.9%) over the past year.
Money funds represent 16.2% of all mutual fund assets (down from 17.2% the previous month), while bond funds account for 21.9%, according to ICI. The total number of money market funds was 367, the same number as in January, and down from 381 a year ago. Taxable money funds numbered 286 funds, and tax-exempt money funds remained at 81 funds.
ICI also released its latest "Month-End Portfolio Holdings of Taxable Money Funds," which confirmed jumps in Treasuries and CDs, and increases in Repo and CP. Repurchase Agreements remained in first place among composition segments; they increased by $5.3 billion, or 0.5%, to $1.042 trillion, or 35.3% of holdings. Repo holdings have risen by $173.3 billion, or 20.0%, over the past year.
Treasury holdings in Taxable money funds jumped by $41.3 billion, or 5.2%, to $831.6 billion, or 28.2% of holdings. Treasury securities have increased by $31.8 billion, or 4.0%, over the past 12 months. U.S. Government Agency securities were the third largest segment; they decreased $3.8 billion, or -0.6%, to $642.7 billion, or 21.8% of holdings. Agency holdings have dropped by $57.7 billion, or -8.2%, over the past 12 months.
Certificates of Deposit (CDs) stood in fourth place; they grew by $10.9 billion, or 4.9%, to $233.0 billion (7.9% of assets). CDs held by money funds have grown by $38.9 billion, or 20.1%, over 12 months. Commercial Paper remained in fifth place, up $5.2 billion, or 2.5%, to $208.3 billion (7.1% of assets). CP has increased by $39.8 billion, or 23.6%, over one year. Notes (including Corporate and Bank) were up by $786 million, or 11.0%, to $8.0 billion (0.3% of assets) and Other holdings increased slightly to $11.5 billion.
The Number of Accounts Outstanding in ICI's series for taxable money funds increased by 328.3 thousand to 33.992 million, while the Number of Funds remains at 286. Over the past 12 months, the number of accounts rose by 2.938 million and the number of funds decreased by 12. The Average Maturity of Portfolios was 29 days, same as January. Over the past 12 months, WAMs of Taxable money funds have shortened by 2 days to 29 days.
