ICI released its latest monthly "Trends in Mutual Fund Investing" and "Month-End Portfolio Holdings of Taxable Money Funds" for July 2021. The monthly "Trends" report shows that money fund assets decreased $24.4 billion in July to $4.510 trillion. This follows a decrease of $73.4 billion in June, which followed increases of $78.6 billion in May, $31.9 billion in April, $129.4 billion in March, and $39.4 billion in February. MMFs decreased $5.2 billion in January, $10.0 billion in December and $12.0 billion in November. Assets also fell $47.6 billion in October, $118.4 billion in September and $56.7 billion in August. For the 12 months through July 31, 2021, money fund assets have decreased by $24.4 billion, or -0.5%. (Month-to-date in July through 8/27, MMF assets have decreased by $11.5 billion according to Crane's MFI Daily.)
Their monthly release states, "The combined assets of the nation’s mutual funds increased by $166.39 billion, or 0.6 percent, to $26.16 trillion in July, 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.... Bond funds had an inflow of $15.93 billion in July, compared with an inflow of $38.65 billion in June.... Money market funds had an outflow of $24.39 billion in July, compared with an outflow of $73.37 billion in June. In July funds offered primarily to institutions had an outflow of $10.94 billion and funds offered primarily to individuals had an outflow of $13.45 billion."
The Institute's latest statistics show that both Taxable and Tax Exempt MMFs saw asset declines last month. Taxable MMFs decreased by $22.2 billion in July to $4.419 trillion. Tax-Exempt MMFs decreased $2.3 billion to $91.2 billion. Taxable MMF assets decreased year-over-year by $39.0 billion (-0.9%), while Tax-Exempt funds fell by $30.6 billion over the past year (-25.1%). Bond fund assets increased by $60.8 billion in July to a record $5.574 trillion; they've risen by $703.7 billion (14.4%) over the past year.
Money funds represent 17.2% of all mutual fund assets (up 0.2% from the previous month), while bond funds account for 21.3%, according to ICI. The total number of money market funds was 314, down 2 from the prior month and down from 356 a year ago. Taxable money funds numbered 250 funds, and tax-exempt money funds numbered 64 funds.
ICI's "Month-End Portfolio Holdings" confirms yet another massive drop in Treasuries and jump in Repo last month. Treasury holdings in Taxable money funds still remain the largest composition segment (since surpassing Repo last April). Treasury holdings plunged $185.9 billion, or -8.8%, to $1.919 trillion, or 43.4% of holdings. Treasury securities have decreased by $359.3 trillion, or -15.8%, over the past 12 months. (See our August MF Portfolio Holdings: Treasuries Plunge Again; Repo, TDs Jump.")
Repurchase Agreements were the second largest composition segment; repos increased by $49.5 billion, or 3.1%, to $1.638 trillion, or 37.1% of holdings. Repo holdings have increased $683.0 billion, or 71.5%, over the past year. U.S. Government Agency securities were the third largest segment; they decreased $8.5 billion, or -1.7%, to $489.9 billion, or 11.1% of holdings. Agency holdings have fallen by $296.5 billion, or -37.7%, over the past 12 months.
Certificates of Deposit (CDs) remained in fourth place; they increased by $37.8 billion, or 25.5%, to $186.2 billion (4.2% of assets). CDs held by money funds shrank by $31.8 billion, or -14.6%, over 12 months. Commercial Paper took fifth place, up $8.6 billion, or 6.0%, to $150.7 billion (3.4% of assets). CP has decreased by $48.4 billion, or -24.3%, over one year. Other holdings increased to $24.0 billion (0.5% of assets), while Notes (including Corporate and Bank) were down to $3.5 billion (0.1% of assets).
The Number of Accounts Outstanding in ICI's series for taxable money funds decreased to 44.453 million, while the Number of Funds was down 1 to 250. Over the past 12 months, the number of accounts rose by 5.139 million and the number of funds decreased by 26. The Average Maturity of Portfolios was 38 days, the same number as in June. Over the past 12 months, WAMs of Taxable money have decreased by 5.
