Money Fund Assets Inch Higher
Money fund assets rebounded slightly in the latest week after declining for the first time in four weeks last week, according to the ICI. The latest "Money Market Fund Assets" report explains, "Total money market fund assets increased by $3.49 billion to $3.63 trillion for the week ended Wednesday, January 22, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $943 million and prime funds increased by $4.40 billion. Tax-exempt money market funds decreased by $1.85 billion." Money fund assets are flat year-to-date in 2020 (up $2B), but they've increased in 11 out of the last 14 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 $582 billion, or 19.1%, with Retail MMFs rising by $189 billion (15.8%) and Inst MMFs rising by $394 billion (21.2%). ICI's weekly series shows Institutional MMFs rising $4.2 billion and Retail MMFs decreasing $0.7 billion. Total Government MMF assets, including Treasury funds, were $2.705 trillion (74.3% of all money funds), while Total Prime MMFs were $794.7 billion (21.9%). Tax Exempt MMFs totaled $138.7 billion, 3.8%. They explain, "Assets of retail money market funds decreased by $695 million to $1.38 trillion. Among retail funds, government money market fund assets decreased by $1.60 billion to $781.61 billion, prime money market fund assets increased by $2.12 billion to $470.39 billion, and tax-exempt fund assets decreased by $1.22 billion to $126.52 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 increased by $4.18 billion to $2.26 trillion. Among institutional funds, government money market fund assets increased by $2.54 billion to $1.92 trillion, prime money market fund assets increased by $2.28 billion to $324.27 billion, and tax-exempt fund assets decreased by $636 million to $12.17 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.
