Money market mutual fund assets showed big gains for the ninth week in a row, hitting yet another record and breaking above the $4.7 trillion level. ICI's latest weekly "Money Market Fund Assets" report says, "Total money market fund assets increased by $82.21 billion to $4.73 trillion for the week ended Wednesday, April 29, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $73.48 billion and prime funds increased by $11.58 billion. Tax-exempt money market funds decreased by $2.85 billion." ICI's stats show Institutional MMFs rising $75.9 billion and Retail MMFs increasing $6.3 billion. Total Government MMF assets, including Treasury funds, were $3.899 trillion (82.3% of all money funds), while Total Prime MMFs were $699.0 billion (14.8%). Tax Exempt MMFs totaled $136.3 billion, 2.9%. Money fund assets are up an eye-popping $1.102 trillion, or 30.3%, year-to-date in 2020, with Inst MMFs up $918 billion (40.6%) and Retail MMFs up $184 billion (13.4%). Over the past 52 weeks, ICI's money fund asset series has increased by $1.662 trillion, or 54.1%, with Retail MMFs rising by $352 billion (29.3%) and Inst MMFs rising by $1.310 trillion (70.0%).
They explain, "Assets of retail money market funds increased by $6.30 billion to $1.55 trillion. Among retail funds, government money market fund assets increased by $2.43 billion to $988.8 billion, prime money market fund assets increased by $5.97 billion to $442.92 billion, and tax-exempt fund assets decreased by $2.10 billion to $122.36 billion." Retail assets account for just under a third of total assets, or 32.8%, and Government Retail assets make up 63.6% of all Retail MMFs. (Crane Data's MFI Daily, a separate and broader data series, shows assets up by a huge $447.2 billion in April to a record $5.038 trillion through 4/29.)
ICI adds, "Assets of institutional money market funds increased by $75.91 billion to $3.18 trillion. Among institutional funds, government money market fund assets increased by $71.05 billion to $2.91 trillion, prime money market fund assets increased by $5.61 billion to $256.04 billion, and tax-exempt fund assets decreased by $751 million to $13.93 billion." Institutional assets accounted for 67.2% of all MMF assets, with Government Institutional assets making up 91.5% of all Institutional MMF totals. (Note: Crane Data has its own separate, and larger, daily and monthly asset series.)
The Investment Company Institute also released its latest "Trends in Mutual Fund Investing – March 2020" and "Month-End Portfolio Holdings of Taxable Money Funds" earlier this week. These reports show that money fund assets increased by $690.6 billion to $4.337 trillion in March. Last month's increase follows an increase of $32.9 billion in February, a decrease of $18.1 billion in January and an increase of $67.0 billion in December. For the 12 months through Mar. 31, 2020, money fund assets have increased by $1.258 trillion, or 40.9%.
ICI's monthly "Trends" release states, "The combined assets of the nation's mutual funds decreased by $1.54 trillion, or 7.5 percent, to $18.87 trillion in March, 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 $255.15 billion in March, compared with an inflow of $12.75 billion in February.... Money market funds had an inflow of $688.36 billion in March, compared with an inflow of $30.30 billion in February. In March funds offered primarily to institutions had an inflow of $572.92 billion and funds offered primarily to individuals had an inflow of $115.44 billion."
ICI's latest statistics show that Taxable MMFs gained assets while Tax Exempt MMFs lost assets last month. Taxable MMFs increased by $697.0 billion in March to $4.209 trillion. Tax-Exempt MMFs decreased $6.4 billion in March to $128.3 billion. Taxable MMF assets increased year-over-year by $1.268 trillion (43.1%). Tax-Exempt funds fell by $10.2 billion over the past year (-0.07%). Bond fund assets decreased by $466.9 billion in March (0.1%) to $4.417 trillion; they've risen by $146.4 billion (0.03%) over the past year.
Money funds represent 23.0% of all mutual fund assets (up 5.1% from the previous month), while bond funds account for 23.4%, according to ICI. The total number of money market funds was 360, down one from the month prior and down from 367 a year ago. Taxable money funds numbered 280 funds, and tax-exempt money funds numbered 80 funds.
ICI's "Month-End Portfolio Holdings" update confirms massive jumps in Repo, Agencies and Treasuries last month. Repurchase Agreements remained in first place among composition segments; they increased by $211.6 billion, or 16.8%, to $1.472 trillion, or 35.0% of holdings. Repo holdings have risen $491.6 billion, or 50.2%, over the past year. (See our April 13 News, "April MF Portfolio Holdings: Govt Securities Skyrocket; CDs, CP Down.")
Treasury holdings in Taxable money funds increased by $306.7 billion, or 32.0%, to $1.266 trillion, or 30.1% of holdings. Treasury securities have increased by $385.3 billion, or 43.8%, over the past 12 months. U.S. Government Agency securities were the third largest segment; they increased $275.2 billion, or 38.0%, to $1.000 trillion, or 23.8% of holdings. Agency holdings have risen by $344.7 billion, or 52.6%, over the past 12 months.
Certificates of Deposit (CDs) stood in fourth place; they decreased by $66.3 billion, or -21.6%, to $240.5 billion (5.7% of assets). CDs held by money funds have grown by $14.1 billion, or 6.2%, over 12 months. Commercial Paper remained in fifth place, down $17.4 billion, or -7.3%, to $220.6 billion (5.2% of assets). CP has increased by $9.3 billion, or 4.4%, over one year. Notes (including Corporate and Bank) were down $2.0 billion, or -19.1%, to $8.5 billion (0.2% of assets), while Other holdings increased $14.7 billion to $27.6 billion.
The Number of Accounts Outstanding in ICI's series for taxable money funds increased by 1.211 million to 39.325 million, while the Number of Funds decreased one to 280. Over the past 12 months, the number of accounts rose by 5.016 million and the number of funds decreased by six. The Average Maturity of Portfolios was 36 days, four more than in February. Over the past 12 months, WAMs of Taxable money have increased by four.
