The Investment Company Institute released its latest monthly "Trends in Mutual Fund Investing" and "Month-End Portfolio Holdings of Taxable Money Funds" for November 2021 Thursday. ICI's monthly "Trends" report shows that money fund assets increased $65.5 billion in November to $4.619 trillion. This follows increases of $11.1 billion in October, $6.4 billion in September and $25.5 in August. MMFs decreased $24.4 billion in July and $73.4 billion in June, but increased $78.6 billion in May, $31.9 billion in April, $129.4 billion in March and $39.4 billion in February. Assets decreased $5.2 billion in January and $10.0 billion last December. For the 12 months through Nov. 30, 2021, money fund assets have increased by $275.9 billion, or 6.4%. (Month-to-date in December through 12/29, MMF assets have increased by $65.3 billion to $5.106 trillion according to Crane's MFI Daily, which tracks a broader universe of funds.) (Note too: We're still planning on hosting our annual Money Fund University "basic training" conference live and in person January 20-21, 2022, at the Boston Hyatt Regency. We hope to see those of you brave enough to travel and gather, and subscribers are welcome to stop by for a session or cocktails. Thanks to all for your support in 2021, and Happy New Year!)
Their monthly release states, "The combined assets of the nation's mutual funds decreased by $358.59 billion, or 1.3 percent, to $26.39 trillion in November, 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 $16.59 billion in November, compared with an inflow of $13.81 billion in October.... Money market funds had an inflow of $65.38 billion in November, compared with an inflow of $10.97 billion in October. In November funds offered primarily to institutions had an inflow of $63.47 billion and funds offered primarily to individuals had an inflow of $1.91 billion."
The Institute's latest statistics show that Taxable funds saw gains while Tax Exempt MMFs saw losses yet again last month. Taxable MMFs increased by $66.3 billion in November to $4.532 trillion. Tax-Exempt MMFs decreased $0.8 billion to $86.9 billion. Taxable MMF assets increased year-over-year by $297.3 billion (7.0%), while Tax-Exempt funds fell by $21.3 billion over the past year (-19.7%). Bond fund assets increased by $22.3 billion in November to a $5.630 trillion; they've risen by $507.8 billion (9.9%) over the past year.
Money funds represent 17.5% of all mutual fund assets (up 0.5% from the previous month), while bond funds account for 21.3%, according to ICI. The total number of money market funds was 307, the same number as the prior month and down from 345 a year ago. Taxable money funds numbered 247 funds, and tax-exempt money funds numbered 60 funds.
ICI's "Month-End Portfolio Holdings" confirms a huge jump in Repo and drop in Treasuries last month. Repurchase Agreements expanded their lead as the largest composition segment in November, rising $136.3 billion, or 6.9%, to $2.115 trillion, or 46.7% of holdings. Repo holdings have increased $1.095 trillion, or 107.3%, over the past year. (See our Dec. 10 News, "Dec. MF Portfolio Holdings: Repo Jumps, Led by FICC; Treasuries Drop.")
Treasury holdings in Taxable money funds fell but remained the second largest composition segment. Treasury holdings declined $33.3 billion, or -1.9%, to $1.697 trillion, or 37.4% of holdings. Treasury securities have decreased by $524.7 trillion, or -23.6%, over the past 12 months. U.S. Government Agency securities were the third largest segment; they decreased $11.2 billion, or -2.7%, to $402.4 billion, or 8.9% of holdings. Agency holdings have fallen by $244.1 billion, or -37.8%, over the past 12 months.
Certificates of Deposit (CDs) remained in fourth place; they decreased by $4.3 billion, or -2.3%, to $181.2 billion (4.0% of assets). CDs held by money funds shrank by $2.1 billion, or -1.2%, over 12 months. Commercial Paper took fifth place, down $5.0 billion, or -3.2%, to $148.3 billion (3.3% of assets). CP has decreased by $14.2 billion, or -8.8%, over one year. Other holdings increased to $25.5 billion (0.6% of assets), while Notes (including Corporate and Bank) were down to $3.0 billion (0.1% of assets).
The Number of Accounts Outstanding in ICI's series for taxable money funds increased to 47.341 million, while the Number of Funds was flat at 247. Over the past 12 months, the number of accounts rose by 7.022 million and the number of funds decreased by 23. The Average Maturity of Portfolios was 37 days, the same number as October. Over the past 12 months, WAMs of Taxable money have decreased by 8.
