The Federal Reserve released its latest quarterly "Z.1 Financial Accounts of the United States" statistical survey (formerly the "Flow of Funds") late last week. Among the 4 tables it includes on money market mutual funds, the First Quarter 2019 edition shows that Total MMF Assets increased by $41 billion to $3.079 trillion in Q1. The Household Sector, by far the largest investor segment with $1.824 trillion, saw assets increase in Q1, as did the next largest segments, Nonfinancial Corporate Businesses and Funding Corporations' (primarily securities lending reinvestment cash). Time and Savings Deposits showed the largest gains among money fund assets.
The Fed's latest Z.1 numbers, which contain one of the few looks at money fund investor segments available, also show slight asset increases for Nonfinancial Noncorporate Business, Property-Casualty Insurance and the Rest of the World categories in Q1 2019. Life Insurance Companies, State & Local Govt Retirements and Private Pension Funds saw assets fall slightly in Q1, and State & Local Govt MMF holdings were flat. Over the past 12 months, the Household Sector, Funding Corporations, Nonfinancial Corporate Businesses, Rest of the World, Nonfinancial Noncorporate Businesses, Life Insurance and Property Casualty Insurance showed asset increases, while the State and Local Government Retirement, Private Pension Funds and State & Local Govt categories showed decreases.
The Fed's "Table L.206," "Money Market Mutual Fund Shares," shows that total assets increased by $41 billion, or 1.4%, in the first quarter to $3.079 trillion. Over the year through March 31, 2019, assets were up $286 billion, or 10.2%. The largest segment, the Household sector, totals $1.824 trillion, or 59.2% of assets. The Household Sector increased by $26 billion, or 1.4%, in the quarter, after increasing $117 billion in Q4'18. Over the past 12 months through Q1'19, Household assets were up $230 billion, or 14.4%.
Nonfinancial Corporate Businesses, the second-largest segment according to the Fed's data series, held $473 billion, or 15.3% of the total. Assets here rose by $6 billion in the quarter, or 1.4%, and they've increased by $16 billion, or 3.4%, over the past year. Funding Corporations were the third-largest investor segment with $274 billion, or 8.9% of money fund shares. They rose by $10 billion, or 3.7%, in the latest quarter. Funding Corporations have increased by $24 billion, or 9.4%, over the previous 12 months.
The fourth-largest segment, Private Pension Funds held 4.9% of money fund assets ($152 billion), down by $1 billion (-0.4%) for the quarter, and down $3 billion, or -1.9%, for the year. Nonfinancial Noncorporate Businesses, which held $108 billion (3.5%), were in 5th place. The Rest of The World category remained in sixth place in market share among investor segments with 3.4%, or $106 billion, while Life Insurance Companies held $48 billion (1.6%), State and Local Government Retirement Funds held $48 billion (1.6%), Property-Casualty Insurance held $24 billion (0.8%), and State and Local Governments held $20 billion (0.6%) according to the Fed's Z.1 breakout.
The Fed's "Flow of Funds" Table L.121 shows "Money Market Mutual Funds" largely invested in "Debt Securities," or Credit Market Instruments, with $1.895 trillion, or 61.5% of the total. Debt securities includes: Open market paper ($216 billion, or 7.0%; we assume this is CP), Treasury securities ($880 billion, or 28.6%), Agency and GSE-backed securities ($656 billion, or 21.3%), Municipal securities ($135 billion, or 4.4%), and Corporate and foreign bonds ($9 billion, or 0.3%).
Other large holdings positions in the Fed's series include Security repurchase agreements ($980 billion, or 31.8%) and Time and savings deposits ($226 billion, or 7.3%). Money funds also hold minor positions in Foreign deposits ($2 billion, or 0.0%), Miscellaneous assets ($9 billion, or 0.3%), and Checkable deposits and currency ($-32 billion, -1.0%). Note: The Fed also lists "Variable Annuity Money Funds;" they currently total $35 billion.
During Q1, Debt Securities were up $33 billion. This subtotal included: Open Market Paper (up $23 billion), Treasury Securities (up $6 billion), Agency- and GSE-backed Securities (up $11 billion), Corporate and Foreign Bonds (up $9 billion) and Municipal Securities (down $8 billion). In the first quarter of 2019, Security Repurchase Agreements were down $39 billion, Foreign Deposits were flat, Checkable Deposits and Currency were up $12 billion, Time and Savings Deposits were up $35 billion, and Miscellaneous Assets were up $1 billion.
Over the 12 months through 3/31/19, Debt Securities were up $73B, which included Open Market Paper up $57B, Treasury Securities down $1B, Agencies up $12B, Municipal Securities (up $3B), and Corporate and Foreign Bonds (up $1B). Foreign Deposits were flat, Checkable Deposits and Currency were down $42B, Time and Savings Deposits were up $54B, Securities repurchase agreements were up $198B, and Miscellaneous Assets were up $3B.
Note that the Federal Reserve changed its numbers related to money market funds substantially in the second quarter of 2018. "Release Highlights Second Quarter 2018," tells us, "New source data for money market funds from the U.S. Securities and Exchange Commission's (SEC) form N-MFP have been incorporated into the sector's asset holdings (tables F.121 and L.121). Money market funds not available to the public, which are included in the SEC data, are excluded from Financial Accounts' estimates. Data revisions begin 2013:Q1. Holdings of money market fund shares by households and nonprofit organizations, state and local governments, and funding corporations (tables F.206 and L.206) have been revised due to a change in methodology based on detail from the Investment Company Institute. Data revisions begin 1976:Q1."
