The Investment Company Institute released its latest monthly "Trends in Mutual Fund Investing" and "Month-End Portfolio Holdings of Taxable Money Funds" for October 2022 Tuesday. ICI's monthly "Trends" report shows that money fund assets increased $36.8 billion in October to $4.607 trillion. Meanwhile, bond fund assets continued their steep decline, falling by $88.1 billion to $4.445 trillion. Money fund assets surpassed bond fund assets last month for the first time since 2010; bond funds have declined by over $1.1 trillion year-to-date in 2022. (The bond fund totals don't include bond ETFs, which total $1.204 trillion as of 10/31, according to ICI.) (Note: Crane Data updated its November Short-Term Bond Fund Holdings yesterday, which are available to our Bond Fund Wisdom subscribers. The latest files are available via our "Content" page or here. Let us know if you'd like to see the latest cut.)
Money funds' October asset increase follows a gain of $4.2 billion in Sept., a decrease of $6.4 billion in August, and increases of $34.3 billion in July and $25.0 billion in June. MMFs decreased $8.0 billion in May and $71.0 billion in April. They increased $9.6 billion in March, decreased $38.3 billion in February, and decreased $136.1 billion in January. For the 12 months through Oct. 31, 2022, money fund assets increased by $53.6 billion, or 1.2%. (For the month of November through 11/28, MMF assets have increased by $37.1 billion to $5.091 trillion according to Crane's MFI XLS, which tracks a broader universe of funds than ICI. Crane Data's Prime asset totals have increased by $35.1 billion in November to $1.031 trillion.)
ICI's monthly release states, "The combined assets of the nation's mutual funds increased by $683.92 billion, or 3.2%, to $21.87 trillion in October, 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 outflow of $58.68 billion in October, compared with an outflow of $56.54 billion in September.... Money market funds had an inflow of $31.10 billion in October, compared with an outflow of $2.31 billion in September. In October funds offered primarily to institutions had an outflow of $15.13 billion and funds offered primarily to individuals had an inflow of $46.22 billion."
The Institute's latest statistics show that Taxable funds and Tax Exempt MMFs were both higher last month. Taxable MMFs increased by $25.1 billion in October to $4.496 trillion. Tax-Exempt MMFs jumped $11.7 billion to $111.3 billion. Taxable MMF assets increased year-over-year by $30.0 billion (0.7%), and Tax-Exempt funds rose by $23.6 billion over the past year (26.9%). Bond fund assets fell by $88.1 billion (after plummeting by $238.5 billion in Sept.) to $4.445 trillion; they've decreased by $1.162 trillion (-20.7%) over the past year.
Money funds represent 21.1% of all mutual fund assets (down 0.5% from the previous month), while bond funds account for 20.3%, according to ICI. The total number of money market funds was 291, down one from the prior month and down from 307 a year ago. Taxable money funds numbered 236 funds, and tax-exempt money funds numbered 55 funds.
ICI's "Month-End Portfolio Holdings" confirm yet another jump in Repo and plunge in Treasuries last month. Repurchase Agreements remained the largest composition segment in October, increasing $74.5 billion, or 3.1%, to $2.481 trillion, or 55.2% of holdings. Repo holdings have increased $502.7 billion, or 25.4%, over the past year. (See our Nov. 10 News, "Nov. MF Portfolio Holdings: Repo, Treasury Down; Agency, CDs, CP Up.")
Treasury holdings in Taxable money funds fell again, but they remained the second largest composition segment. Treasury holdings plunged $105.3 billion, or -8.3%, to $1.165 trillion, or 25.9% of holdings. Treasury securities have decreased by $565.1 billion, or -32.7%, over the past 12 months. U.S. Government Agency securities were the third largest segment; they increased $34.9 billion, or 7.8%, to $481.5 billion, or 10.7% of holdings. Agency holdings have fallen by $67.9 billion, or 16.4%, over the past 12 months.
Certificates of Deposit (CDs) remained in fourth place; they increased by $32.2 billion, or 4.7%, to $209.3 billion (4.7% of assets). CDs held by money funds rose by $23.8 billion, or 12.8%, over 12 months. Commercial Paper remained in fifth place, up $20.5 billion, or 3.7%, to $167.6 billion (3.7% of assets). CP increased $14.4 billion, or 9.4%, over one year. Other holdings increased to $18.1 billion (0.4% of assets), while Notes (including Corporate and Bank) inched up to $3.5 billion (0.1% of assets).
The Number of Accounts Outstanding in ICI's series for taxable money funds increased to 59.350 million, while the Number of Funds fell by one fund to 236. Over the past 12 months, the number of accounts rose by 13.413 million and the number of funds decreased by 11. The Average Maturity of Portfolios was a record low 15 days, down 3 days from September. Over the past 12 months, WAMs of Taxable money have decreased by 22.
