Money fund assets rose for the 25th week out of the past 28, and broke above $3.5 trillion for the first time since September 2009. ICI's latest "Money Market Fund Assets" report shows that MMF totals have increased by $466.0 billion, or 15.3%, year-to-date. Over the past 52 weeks, ICI's money fund asset series has increased by $629 billion, or 21.8%, with Retail MMFs rising by $249 billion (22.8%) and Inst MMFs rising by $380 billion (21.2%). 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 $27.27 billion to $3.51 trillion for the week ended Wednesday, October 30, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $26.54 billion and prime funds increased by $1.46 billion. Tax-exempt money market funds decreased by $738 million." ICI's weekly series shows Institutional MMFs jumping $25.2 billion and Retail MMFs increasing $2.1 billion. Total Government MMF assets, including Treasury funds, were $2.626 trillion (74.8% of all money funds), while Total Prime MMFs were $750.1 billion (21.4%). Tax Exempt MMFs totaled $137.3 billion, 3.9%.

They explain, "Assets of retail money market funds increased by $2.09 billion to $1.34 trillion. Among retail funds, government money market fund assets increased by $442 million to $765.63 billion, prime money market fund assets increased by $1.92 billion to $448.76 billion, and tax-exempt fund assets decreased by $274 million to $125.44 billion." Retail assets account for over a third of total assets, or 38.1%, and Government Retail assets make up 57.1% of all Retail MMFs.

The release adds, "Assets of institutional money market funds increased by $25.18 billion to $2.17 trillion. Among institutional funds, government money market fund assets increased by $26.10 billion to $1.86 trillion, prime money market fund assets decreased by $455 million to $301.32 billion, and tax-exempt fund assets decreased by $464 million to $11.90 billion." Institutional assets accounted for 61.9% 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 $74.4 billion to $3.441 trillion in September. This follows increases of $87.0 billion in August, $78.2 billion in July and $41.5 billion in June. In the 12 months through Sept. 30, 2019, money fund assets have increased by $577.5 billion, or 20.2%.

The release states, "The combined assets of the nation's mutual funds increased by $200.85 billion, or 1.0 percent, to $20.13 trillion in September, 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 $24.38 billion in September, compared with an inflow of $8.96 billion in August.... Money market funds had an inflow of $70.69 billion in September, compared with an inflow of $83.38 billion in August. In September funds offered primarily to institutions had an inflow of $42.53 billion and funds offered primarily to individuals had an inflow of $28.16 billion."

The latest statistics show that Taxable MMFs gained assets last month while and Tax Exempt MMFs lost assets. Taxable MMFs increased by $75.4 billion in September to $3.307 trillion. Tax-Exempt MMFs decreased $0.9 billion in September to $133.9 billion. Taxable MMF assets increased year-over-year by $574.9 billion (21.0%). Tax-Exempt funds rose by $2.6 billion over the past year (2.0%). Bond fund assets increased by $8.7 billion in September (0.2%) to $4.568 trillion; they've risen by $401.1 billion (9.6%) over the past year.

Money funds represent 17.1% of all mutual fund assets (up from 16.9% the previous month), while bond funds account for 22.7%, according to ICI. The total number of money market funds was 367, the same the prior month 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 a plunge in Repo last month. Repurchase Agreements remained in first place among composition segments; they decreased by $64.3 billion, or -5.2%, to $1.173 trillion, or 35.5% of holdings. Repo holdings have risen by $253.1 billion, or 27.5%, over the past year. (See our Oct. 10 News, "Oct. Money Fund Portfolio Holdings: Treasuries Surge, Break $1 Trillion.")

Treasury holdings in Taxable money funds increased by $113.8 billion, or 13.7%, to $945.2 billion, or 28.6% of holdings. Treasury securities have increased by $180.2 billion, or 23.6%, over the past 12 months. U.S. Government Agency securities were the third largest segment; they increased $33.4 billion, or 5.0%, to $695.4 billion, or 21.0% of holdings. Agency holdings have risen by $74.9 billion, or 12.1%, over the past 12 months.

Certificates of Deposit (CDs) stood in fourth place; they decreased by $12.5 billion, or -4.6%, to $258.6 billion (7.8% of assets). CDs held by money funds have grown by $61.7 billion, or 31.4%, over 12 months. Commercial Paper remained in fifth place, up $5.5 billion, or 2.4%, to $237.0 billion (7.2% of assets). CP has increased by $47.0 billion, or 24.7%, over one year. Notes (including Corporate and Bank) were up $2.0 billion, or 19.0%, to $12.8 billion (0.4% of assets), while Other holdings increased to $15.5 billion.

The Number of Accounts Outstanding in ICI's series for taxable money funds increased by 301.0 thousand to 35.978 million, while the Number of Funds remained the same at 286. Over the past 12 months, the number of accounts grew by 3.442 million and the number of funds decreased by 13. The Average Maturity of Portfolios was 33 days, two more than in August. Over the past 12 months, WAMs of Taxable money have remained the same.

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