Money fund assets declined for the first time in four weeks, moving back down to the $3.63 trillion level after hitting their highest level since July 2009 the prior week, according to the ICI. Their latest "Money Market Fund Assets" report explains, "Total money market fund assets decreased by $7.18 billion to $3.63 trillion for the week ended Wednesday, January 15, the Investment Company Institute reported.... Among taxable money market funds, government funds decreased by $8.51 billion and prime funds increased by $2.32 billion. Tax-exempt money market funds decreased by $993 million." Money fund assets are flat year-to-date in 2020, but they've increased in 10 out of the last 13 weeks and rose by $584 billion in 2019, or 19.2%.
Over the past 52 weeks, ICI's money fund asset series has increased by $581 billion, or 19.1%, with Retail MMFs rising by $186 billion (15.6%) and Inst MMFs rising by $395 billion (21.3%). ICI's weekly series shows Institutional MMFs falling $6.6 billion and Retail MMFs decreasing $0.58 billion. Total Government MMF assets, including Treasury funds, were $2.700 trillion (74.4% of all money funds), while Total Prime MMFs were $790.3 billion (21.8%). Tax Exempt MMFs totaled $140.5 billion, 3.9%.
They explain, "Assets of retail money market funds decreased by $579 million to $1.38 trillion. Among retail funds, government money market fund assets decreased by $1.12 billion to $788.20 billion, prime money market fund assets increased by $1.07 billion to $468.27 billion, and tax-exempt fund assets decreased by $529 million to $127.73 billion." Retail assets account for over a third of total assets, or 38.0%, and Government Retail assets make up 56.8% of all Retail MMFs.
The release adds, "Assets of institutional money market funds decreased by $6.60 billion to $2.25 trillion. Among institutional funds, government money market fund assets decreased by $7.39 billion to $1.92 trillion, prime money market fund assets increased by $1.26 billion to $321.99 billion, and tax-exempt fund assets decreased by $464 million to $12.81 billion." Institutional assets accounted for 62.0% of all MMF assets, with Government Institutional assets making up 85.1% of all Institutional MMF totals.
Money fund assets ended 2019 with their fastest growth rate and biggest asset increase since 2008. Assets increased by more than 2 1/2 times 2018's 7.2% gain. The prior seven years showed relatively flat growth with MMFs increasing by 4.1% in 2017, decreasing 1.1% in 2016, increasing 1.0% in 2015, increasing 0.5% in 2014 and 2013, and increasing 0.4% in 2012. In 2011, money fund assets fell by 4.1%. In 2009 and 2010, assets plummeted by 14.0% and 14.7%, respectively.
Our separate MFI Daily asset series shows money fund assets down $30.5 billion month-to-date to $3.947 trillion. Prime assets are down $12.4 billion MTD, while Government assets are down by $20.8B. Tax-Exempt MMFs increased $2.8 billion. Prime and Government MF assets were up $378.7 billion and $492.6 billion in 2019, respectively. (Note: Crane Data, ICI and the SEC all have separate asset series, so totals will vary due to differences in the fund universes covered.)
In related news, ICI also released its monthly "Money Market Fund Holdings" summary, which reviews the aggregate daily and weekly liquid assets, regional exposure, and maturities (WAM and WAL) for Prime and Government money market funds. (For more, see our Jan. 13 News, "Jan MF Portfolio Holdings: Big FIIC Repo, Agency Rebound; CDs, CP Drop.)
The MMF Holdings release says, "The Investment Company Institute (ICI) reports that, as of the final Friday in December, prime money market funds held 25.5 percent of their portfolios in daily liquid assets and 40.9 percent in weekly liquid assets, while government money market funds held 59.3 percent of their portfolios in daily liquid assets and 76.6 percent in weekly liquid assets." Prime DLA decreased from 26.4% in November, and Prime WLA was unchanged from 40.9%. Govt MMFs' DLA decreased from 60.3% in November and Govt WLA decreased from 77.2% from the previous month.
ICI explains, "At the end of December, prime funds had a weighted average maturity (WAM) of 35 days and a weighted average life (WAL) of 73 days. Average WAMs and WALs are asset-weighted. Government money market funds had a WAM of 38 days and a WAL of 97 days." Prime WAMs and WALs decreased by five days from the previous month. Govt WAMs remained the same while WALs decreased by two from the previous month.
Regarding Holdings By Region of Issuer, ICI's release tells us, "Prime money market funds' holdings attributable to the Americas rose from $336.58 billion in November to $372.93 billion in December. Government money market funds' holdings attributable to the Americas rose from $2,179.84 billion in November to $2,350.29 billion in December."
The Prime Money Market Funds by Region of Issuer table shows Americas-related holdings at $372.9 billion, or 48.1%; Asia and Pacific at $167.5 billion, or 21.6%; Europe at $229.6 billion, or 29.6%; and, Other (including Supranational) at $5.1 billion, or 0.7%. The Government Money Market Funds by Region of Issuer table shows Americas at $2.350 trillion, or 86.4%; Asia and Pacific at $127.4 billion, or 4.7%; Europe at $228.8 billion, or 8.4%, and Other (Including Supranational) at $13.6 billion, or 0.5%."
