ICI: MMFs Dip from Record Levels
ICI's latest weekly "Money Market Fund Assets" report shows money fund assets declining after they hit a record $4.814 trillion last week. Money funds fell following their biggest weekly increase since April 29, 2020; they've risen in 8 of the past 11 weeks, rising by $221.0 billion, or 4.8%, since October 26. Over the past 52 weeks, money fund assets are up by $131 billion, or 2.8%, with Retail MMFs rising by $251 billion (16.9%) and Inst MMFs falling by $120 billion (-3.8%). ICI shows assets up by $70 billion, or 1.5%, year-to-date in 2023 (the first 2 weeks), with Institutional MMFs up $14 billion, or 0.5% and Retail MMFs up $56 billion, or 3.3%. (See our Jan. 5 News, "Money Fund Assets Hit Record $5.23 Trillion; Weekly Holds; Fed Minutes.") The weekly release says, "Total money market fund assets decreased by $8.87 billion to $4.81 trillion for the week ended Wednesday, January 11, the Investment Company Institute reported.... Among taxable money market funds, government funds decreased by $33.52 billion and prime funds increased by $18.93 billion. Tax-exempt money market funds increased by $5.73 billion." ICI's stats show Institutional MMFs falling $21.2 billion and Retail MMFs increasing $12.3 billion in the latest week. Total Government MMF assets, including Treasury funds, were $3.986 trillion (83.0% of all money funds), while Total Prime MMFs were $697.3 billion (14.5%). Tax Exempt MMFs totaled $121.6 billion (2.5%). ICI explains, "Assets of retail money market funds increased by $12.30 billion to $1.73 trillion. Among retail funds, government money market fund assets decreased by $3.76 billion to $1.19 trillion, prime money market fund assets increased by $10.99 billion to $439.85 billion, and tax-exempt fund assets increased by $5.06 billion to $108.49 billion." Retail assets account for over a third of total assets, or 36.1%, and Government Retail assets make up 68.4% of all Retail MMFs. They add, "Assets of institutional money market funds decreased by $21.17 billion to $3.07 trillion. Among institutional funds, government money market fund assets decreased by $29.76 billion to $2.80 trillion, prime money market fund assets increased by $7.93 billion to $257.41 billion, and tax-exempt fund assets increased by $662 million to $13.09 billion." Institutional assets accounted for 63.9% of all MMF assets, with Government Institutional assets making up 91.2% of all Institutional MMF totals. Month-to-date in January 2023 (through 1/11/23), money fund assets decreased by $5.4 billion, according to our Money Fund Intelligence Daily. (Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're over $400 billion lower than Crane's asset series.)
