The Investment Company Institute's latest weekly "Money Market Fund Assets" report shows assets rising for the 6th week in a row and the 7th week out of the past 8. Over the past 6 weeks, money fund assets have increased by $81.5 billion, and over the past 8 weeks assets they are up $118.1 billion. Money fund assets are up by $339 billion, or 7.9%, YTD in 2021. (This follows a gain of $665.0 billion, or 18.3%, in 2020.) Inst MMFs are up $420 billion (15.1%), while Retail MMFs are down $81 billion (-5.3%). Over the past 52 weeks, money fund assets have increased by $347 billion, or 8.1%, with Retail MMFs falling by $77 billion (-5.1%) and Inst MMFs rising by $425 billion (15.3%).
ICI's release says, "Total money market fund assets increased by $59 million to $4.64 trillion for the week ended Wednesday, December 15, the Investment Company Institute reported today. Among taxable money market funds, government funds increased by $3.92 billion and prime funds decreased by $3.80 billion. Tax-exempt money market funds decreased by $55 million." ICI's stats show Institutional MMFs decreasing $4.8 billion and Retail MMFs increasing $4.8 billion in the latest week. Total Government MMF assets, including Treasury funds, were a record $4.108 trillion (88.6% of all money funds), while Total Prime MMFs were $440.9 billion (9.5%). Tax Exempt MMFs totaled $86.7 billion (1.9%).
ICI explains, "Assets of retail money market funds increased by $4.84 billion to $1.44 trillion. Among retail funds, government money market fund assets increased by $4.82 billion to $1.16 trillion, prime money market fund assets decreased by $160 million to $204.24 billion, and tax-exempt fund assets increased by $184 million to $76.99 billion." Retail assets account for just under a third of total assets, or 31.2%, and Government Retail assets make up 80.5% of all Retail MMFs.
They add, "Assets of institutional money market funds decreased by $4.78 billion to $3.19 trillion. Among institutional funds, government money market fund assets decreased by $900 million to $2.94 trillion, prime money market fund assets decreased by $3.64 billion to $236.68 billion, and tax-exempt fund assets decreased by $239 million to $9.73 billion." Institutional assets accounted for 68.8% of all MMF assets, with Government Institutional assets making up 92.3% of all Institutional MMF totals. (Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than Crane's asset series.)
ICI also released its latest 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 Dec. 10 News, "Dec. MF Portfolio Holdings: Repo Jumps, Led by FICC; Treasuries Drop."
The MMF Holdings release says, "The Investment Company Institute (ICI) reports that, as of the final Friday in November, prime money market funds held 29.2 percent of their portfolios in daily liquid assets and 47.7 percent in weekly liquid assets, while government money market funds held 84.3 percent of their portfolios in daily liquid assets and 92.1 percent in weekly liquid assets." Prime DLA was up from 28.1% in October, and Prime WLA was down slightly at 47.7%. Govt MMFs' DLA decreased from 84.5% in October and Govt WLA decreased from 92.6% from the previous month.
ICI explains, "At the end of November, prime funds had a weighted average maturity (WAM) of 45 days and a weighted average life (WAL) of 60 days. Average WAMs and WALs are asset-weighted. Government money market funds had a WAM of 37 days and a WAL of 82 days." Prime WAMs were three days shorter than October, while WALs were three days lower than the previous month. Govt WAMs were one day longer and WALs were one day shorter than October, respectively.
Regarding Holdings by Region of Issuer, the release tells us, "Prime money market funds' holdings attributable to the Americas rose from $167.46 billion in October to $169.25 billion in November. Government money market funds' holdings attributable to the Americas rose from $3,668.75 billion in October to $3,760.31 billion in November."
The Prime Money Market Funds by Region of Issuer table shows Americas-related holdings at $169.3 billion, or 38.3%; Asia and Pacific at $90.3 billion, or 20.4%; Europe at $177.9 billion, or 40.2%; and, Other (including Supranational) at $4.7 billion, or 1.2%. The Government Money Market Funds by Region of Issuer table shows Americas at $3.760 trillion, or 91.0%; Asia and Pacific at $114.7 billion, or 2.8%; Europe at $245.1 billion, 5.9%, and Other (Including Supranational) at $12.9 billion, or 0.3%.
Finally, ICI's release, "Retirement Assets Total $37.4 Trillion in Third Quarter 2021," includes data tables showing that money market funds held in retirement accounts inched lower to $533 billion in Q3'21, now accounting for 12% of the total $4.543 trillion in money funds. MMFs represent 4.4% of the total $12.020 trillion of mutual funds in retirement accounts.
The release says, "Total US retirement assets were $37.4 trillion as of September 30, 2021, down 0.5 percent from June 30, 2021. Retirement assets accounted for 33 percent of all household financial assets in the United States at the end of September 2021. Assets in individual retirement accounts (IRAs) totaled $13.2 trillion at the end of the third quarter of 2021, a decrease of 0.6 percent from the end of the second quarter of 2021. Defined contribution (DC) plan assets were $10.4 trillion at the end of the third quarter, down 0.8 percent from June 30, 2021."
The ICI tables also show money funds accounting for $366 billion, or 6%, of the $5.939 trillion in IRA mutual fund assets, $112 billion, or 2%, of the $4.758 trillion in 401(k) plan assets, and $167 billion, or 3%, of the $6.081 trillion in defined contribution plan holdings.
