The Investment Company Institute released its latest weekly "Money Market Fund Assets," as well as its latest monthly "Trends in Mutual Fund Investing – January 2020" and "Month-End Portfolio Holdings of Taxable Money Funds." The former report shows that money fund assets were unchanged even as the stock market plunged, and the latter shows that money fund assets decreased by $18.1 billion to $3.614 trillion in January. Last month's decrease follows increases of $67.0 billion in January, $47.0 billion in November and $77.4 billion in October. For the 12 months through Jan. 31, 2020, money fund assets have increased by $569.0 billion, or 18.7%.
ICI's latest "MMF Assets" weekly shows money fund assets inched higher in the latest week, but didn't show the increases many expected due to market turmoil. It explains, "Total money market fund assets increased by $646 million to $3.63 trillion for the week ended Wednesday, February 26, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $9.28 billion and prime funds decreased by $7.63 billion. Tax-exempt money market funds decreased by $1.00 billion." ICI's weekly series shows Institutional MMFs falling $2.9 billion and Retail MMFs increasing $3.5 billion. Total Government MMF assets, including Treasury funds, were $2.697 trillion (74.2% of all money funds), while Total Prime MMFs were $801.9 billion (22.1%). Tax Exempt MMFs totaled $135.1 billion, 3.7%.
Money fund assets are flat year-to-date in 2020 (up $2B, or 0.1%), but they've increased in 12 out of the last 16 weeks. Note that almost all major brokerages now "sweep" cash to bank deposits and not to money market funds, so any stock market selling would show up in banks and not MMFs (and banks don't report timely deposit information). Over the past 52 weeks, ICI's money fund asset series has increased by $555 billion, or 18.0%, with Retail MMFs rising by $200 billion (16.7%) and Inst MMFs rising by $355 billion (18.8%).
ICI explains, "Assets of retail money market funds increased by $3.49 billion to $1.39 trillion. Among retail funds, government money market fund assets increased by $3.95 billion to $792.19 billion, prime money market fund assets decreased by $217 million to $478.79 billion, and tax-exempt fund assets decreased by $241 million to $123.57 billion." Retail assets account for over a third of total assets, or 38.4%, and Government Retail assets make up 56.8% of all Retail MMFs.
The release adds, "Assets of institutional money market funds decreased by $2.85 billion to $2.24 trillion. Among institutional funds, government money market fund assets increased by $5.33 billion to $1.90 trillion, prime money market fund assets decreased by $7.42 billion to $323.12 billion, and tax-exempt fund assets decreased by $762 million to $11.53 billion." Institutional assets accounted for 61.6% of all MMF assets, with Government Institutional assets making up 85.0% 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.
ICI's monthly "Trends" release states, "The combined assets of the nation's mutual funds decreased by $44.69 billion, or 0.2 percent, to $21.25 trillion in January, 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 $57.16 billion in January, compared with an inflow of $36.58 billion in December.... Money market funds had an outflow of $21.29 billion in January, compared with an inflow of $63.76 billion in December. In January funds offered primarily to institutions had an outflow of $26.12 billion and funds offered primarily to individuals had an inflow of $4.83 billion."
ICI's latest statistics show that Taxable MMFs and Tax Exempt MMFs lost assets last month. Taxable MMFs decreased by $16.6 billion in January to $3.614 trillion. Tax-Exempt MMFs decreased $1.5 billion in January to $136.1 billion. Taxable MMF assets increased year-over-year by $573.2 billion (19.7%). Tax-Exempt funds fell by $4.6 billion over the past year (-0.03%). Bond fund assets increased by $126.6 billion in January (0.03%) to $4.831 trillion; they've risen by $697.5 billion (16.9%) over the past year. (Our MFI Daily shows assets up by $33.6 billion in February month-to-date through 2/26 though.)
Money funds represent 17.0% of all mutual fund assets (down 0.1% from the previous month), while bond funds account for 22.7%, according to ICI. The total number of money market funds was 364, unchanged from the month prior and down from 367 a year ago. Taxable money funds numbered 284 funds, and tax-exempt money funds numbered 80 funds.
ICI's "Month-End Portfolio Holdings" update confirms a jump in Repo and a plunge in Agencies and Treasuries last month. Repurchase Agreements remained in first place among composition segments; they increased by $65.7 billion, or 5.6%, to $1.245 trillion, or 35.8% of holdings. Repo holdings have risen $209.0 billion, or 20.2%, over the past year. (See our Feb. 12 News, "Feb. MF Portfolio Holdings: Repo, TDs, CDs Jump; Treas, Agencies Fall.")
Treasury holdings in Taxable money funds decreased by $81.7 billion, or -7.9%, to $954.4 billion, or 27.4% of holdings. Treasury securities have increased by $164.1 billion, or 20.8%, over the past 12 months. U.S. Government Agency securities were the third largest segment; they decreased $36.4 billion, or -4.8%, to $718.6 billion, or 20.7% of holdings. Agency holdings have risen by $72.1 billion, or 11.1%, over the past 12 months.
Certificates of Deposit (CDs) stood in fourth place; they increased by $46.4 billion, or 17.6%, to $310.9 billion (8.9% of assets). CDs held by money funds have grown by $88.8 billion, or 40.0%, over 12 months. Commercial Paper remained in fifth place, up $3.9 billion, or 1.7%, to $236.1 billion (6.8% of assets). CP has increased by $33.0 billion, or 16.2%, over one year. Notes (including Corporate and Bank) were up $197 million, or 1.7%, to $12.0 billion (0.3% of assets), while Other holdings decreased $777 million to $13.2 billion.
The Number of Accounts Outstanding in ICI's series for taxable money funds increased by 474.2 thousand to 37.697 million, while the Number of Funds remained unchanged from last month’s 284. Over the past 12 months, the number of accounts rose by 4.033 million and the number of funds decreased by two. The Average Maturity of Portfolios was 33 days, four less than in December. Over the past 12 months, WAMs of Taxable money have increased by four.
