Money fund assets fell for the first week in four and just the second week out of the last 19 weeks. ICI's latest "Money Market Fund Assets" report shows that MMF totals have increased by $320.8 billion, or 10.5%, since April 17, and they've increased by $316 billion, or 10.4%, year-to-date. Over the past 52 weeks, ICI's money fund asset series has increased by $500 billion, or 17.5%, with Retail MMFs rising by $224 billion (21.3%) and Inst MMFs rising by $276 billion (15.2%). We review ICI's latest assets, and their monthly "Trends" and "Portfolio Composition" totals below.
ICI writes, "Total money market fund assets decreased by $14.07 billion to $3.36 trillion for the week ended Wednesday, August 28, the Investment Company Institute reported.... Among taxable money market funds, government funds decreased by $13.80 billion and prime funds increased by $178 million. Tax-exempt money market funds decreased by $440 million." ICI's weekly series shows Institutional MMFs falling $17.7 billion and Retail MMFs increasing $3.6 billion. Total Government MMF assets, including Treasury funds, were $2.514 trillion (74.7% of all money funds), while Total Prime MMFs were $715.1 billion (21.3%). Tax Exempt MMFs totaled $134.5 billion, 4.0%.
They explain, "Assets of retail money market funds increased by $3.60 billion to $1.28 trillion. Among retail funds, government money market fund assets increased by $1.61 billion to $730.51 billion, prime money market fund assets increased by $2.49 billion to $423.89 billion, and tax-exempt fund assets decreased by $495 million to $124.10 billion." Retail assets account for over a third of total assets, or 38.0%, and Government Retail assets make up 57.1% of all Retail MMFs.
The release adds, "Assets of institutional money market funds decreased by $17.76 billion to $2.09 trillion. Among institutional funds, government money market fund assets decreased by $15.41 billion to $1.78 trillion, prime money market fund assets decreased by $2.31 billion to $291.19 billion, and tax-exempt fund assets increased by $55 million to $10.42 billion." Institutional assets accounted for 62.0% of all MMF assets, with Government Institutional assets making up 85.5% of all Institutional MMF totals.
The Investment Company Institute also released its monthly "Trends in Mutual Fund Investing" and its latest monthly "Month-End Portfolio Holdings of Taxable Money Funds" reports yesterday. The latest numbers show money fund assets jumping $78.2 billion to $3.280 trillion in July. This follows increases of $41.5 billion in June, $89.3 billion in May, and a decrease of $8.8 billion in April. In the 12 months through July 31, 2019, money fund assets have increased by $444.2 billion, or 15.7%.
The release states, "The combined assets of the nation's mutual funds increased by $163.34 billion, or 0.8 percent, to $20.03 trillion in July, 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 $36.31 billion in July, compared with an inflow of $14.24 billion in June.... Money market funds had an inflow of $74.50 billion in July, compared with an inflow of $37.93 billion in June. In July funds offered primarily to institutions had an inflow of $51.36 billion and funds offered primarily to individuals had an inflow of $23.14 billion."
The latest statistics show that Taxable MMFs gained assets last month while and Tax Exempt MMFs lost assets. Taxable MMFs increased by $78.7 billion in July to $3.144 trillion. Tax-Exempt MMFs decreased $0.6 billion in July to $135.8 billion. Taxable MMF assets increased year-over-year by $439.7 billion (16.3%). Tax-Exempt funds rose by $4.6 billion over the past year (3.5%). Bond fund assets increased by $53.8 billion in July (1.2%) to $4.494 trillion; they've risen by $349.6 billion (8.4%) over the past year.
Money funds represent 16.4% of all mutual fund assets (down from 16.1% the previous month), while bond funds account for 22.4%, according to ICI. The total number of money market funds was 368, up one fund from June and down from 383 a year ago. Taxable money funds numbered 287 funds, and tax-exempt money funds remained at 81 funds.
ICI's "Month-End Portfolio Holdings" update shows a jump in Repo last month. Repurchase Agreements remained in first place among composition segments; they increased by $72.9 billion, or 6.4%, to $1.207 trillion, or 38.4% of holdings. Repo holdings have risen by $276.5 billion, or 29.7%, over the past year.
Treasury holdings in Taxable money funds increased by $8.2 billion, or 1.1%, to $750.9 billion, or 23.9% of holdings. Treasury securities have decreased by $7.1 billion, or -0.9%, over the past 12 months. U.S. Government Agency securities were the third largest segment; they increased $3.9 billion, or 0.6%, to $679.7 billion, or 21.6% of holdings. Agency holdings have risen by $15.4 billion, or 2.3%, over the past 12 months.
Certificates of Deposit (CDs) stood in fourth place; they decreased by $1.0 billion, or -0.4%, to $259.5 billion (8.3% of assets). CDs held by money funds have grown by $67.9 billion, or 35.4%, over 12 months. Commercial Paper remained in fifth place, up $6.0 billion, or 2.6%, to $232.1 billion (7.4% of assets). CP has increased by $42.2 billion, or 22.2%, over one year. Notes (including Corporate and Bank) were up $0.9 billion, or 9.5%, to $10.0 billion (0.3% of assets), while Other holdings increased to $18.0 billion.
The Number of Accounts Outstanding in ICI's series for taxable money funds increased by 552.0 thousand to 35.671 million, while the Number of Funds increased by one to 287. Over the past 12 months, the number of accounts grew by 3.305 million and the number of funds decreased by 12. The Average Maturity of Portfolios was 30 days, the same as June. Over the past 12 months, WAMs of Taxable money funds have increased by 1 day.
