Money fund assets rose again for the fourth week in a row, the 7th week out of the past 8 and the 21st week out of the past 23. ICI's latest "Money Market Fund Assets" report shows that MMF totals have increased by $395.0 billion, or 13.0%, year-to-date. Over the past 52 weeks, ICI's money fund asset series has increased by $559 billion, or 19.4%, with Retail MMFs rising by $242 billion (22.7%) and Inst MMFs rising by $317 billion (17.4%). We review ICI's latest assets, as well as their monthly "Trends" and "Portfolio Composition" totals below.
ICI writes, "Total money market fund assets increased by $40.45 billion to $3.44 trillion for the week ended Wednesday, September 25, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $39.53 billion and prime funds increased by $716 million. Tax-exempt money market funds increased by $206 million." ICI's weekly series shows Institutional MMFs jumping $36.3 billion and Retail MMFs increasing $4.2 billion. Total Government MMF assets, including Treasury funds, were $2.577 trillion (74.8% of all money funds), while Total Prime MMFs were $732.0 billion (21.3%). Tax Exempt MMFs totaled $134.0 billion, 3.9%.
They explain, "Assets of retail money market funds increased by $4.16 billion to $1.31 trillion. Among retail funds, government money market fund assets increased by $2.64 billion to $747.42 billion, prime money market fund assets increased by $1.66 billion to $434.92 billion, and tax-exempt fund assets decreased by $145 million to $123.31 billion." Retail assets account for over a third of total assets, or 37.9%, and Government Retail assets make up 57.2% of all Retail MMFs.
The release adds, "Assets of institutional money market funds increased by $36.29 billion to $2.14 trillion. Among institutional funds, government money market fund assets increased by $36.88 billion to $1.83 trillion, prime money market fund assets decreased by $946 million to $297.06 billion, and tax-exempt fund assets increased by $351 million to $10.72 billion." Institutional assets accounted for 62.1% of all MMF assets, with Government Institutional assets making up 85.6% 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 $87.0 billion to $3.367 trillion in August. This follows increases of $78.2 billion in July, $41.5 billion in June and $89.3 billion in May. In the 12 months through August 31, 2019, money fund assets have increased by $499.6 billion, or 17.4%.
The release states, "The combined assets of the nation's mutual funds decreased by $103.45 billion, or 0.5 percent, to $19.93 trillion in August, 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 $8.90 billion in August, compared with an inflow of $36.38 billion in July.... Money market funds had an inflow of $83.38 billion in August, compared with an inflow of $74.50 billion in July. In August funds offered primarily to institutions had an inflow of $61.40 billion and funds offered primarily to individuals had an inflow of $21.98 billion."
The latest statistics show that Taxable MMFs gained assets last month while and Tax Exempt MMFs lost assets. Taxable MMFs increased by $88.0 billion in August to $3.232 trillion. Tax-Exempt MMFs decreased $1.0 billion in August to $134.8 billion. Taxable MMF assets increased year-over-year by $495.7 billion (18.1%). Tax-Exempt funds rose by $4.0 billion over the past year (3.1%). Bond fund assets increased by $74.7 billion in August (1.7%) to $4.568 trillion; they've risen by $402.7 billion (9.7%) over the past year.
Money funds represent 16.9% of all mutual fund assets (up from 16.4% the previous month), while bond funds account for 22.9%, according to ICI. The total number of money market funds was 367, down one fund from July and down from 383 a year ago. Taxable money funds numbered 286 funds, and tax-exempt money funds remained at 81 funds.
ICI's "Month-End Portfolio Holdings" update confirms a big jump in Treasury holdings and Repo last month. Repurchase Agreements remained in first place among composition segments; they increased by $30.3 billion, or 2.5%, to $1.237 trillion, or 38.3% of holdings. Repo holdings have risen by $313.6 billion, or 33.9%, over the past year. (See our Sept. 12 News, "Sept. Money Fund Portfolio Holdings: Treasuries, Repo Jump; CP Down.")
Treasury holdings in Taxable money funds increased by $80.6 billion, or 10.7%, to $831.5 billion, or 25.7% of holdings. Treasury securities have increased by $56.4 billion, or 7.3%, over the past 12 months. U.S. Government Agency securities were the third largest segment; they decreased $17.7 billion, or -2.6%, to $662.0 billion, or 20.5% of holdings. Agency holdings have risen by $28.2 billion, or 4.5%, over the past 12 months.
Certificates of Deposit (CDs) stood in fourth place; they increased by $11.7 billion, or 4.5%, to $271.2 billion (8.4% of assets). CDs held by money funds have grown by $78.4 billion, or 40.6%, over 12 months. Commercial Paper remained in fifth place, down $733 million, or -0.3%, to $231.4 billion (7.2% of assets). CP has increased by $41.5 billion, or 21.9%, over one year. Notes (including Corporate and Bank) were up $723 million, or 7.2%, to $10.7 billion (0.3% of assets), while Other holdings decreased to $13.1 billion.
The Number of Accounts Outstanding in ICI's series for taxable money funds decreased by 184.0 thousand to 35.677 million, while the Number of Funds decreased by one to 286. Over the past 12 months, the number of accounts grew by 3.316 million and the number of funds decreased by 13. The Average Maturity of Portfolios was 31 days, one more than in July. Over the past 12 months, WAMs of Taxable money funds have increased by 1 day.
