MMF Assets Hit Record $5.1 Trillion
ICI's most recent "Money Market Fund Assets" report shows money fund totals jumping $117 billion in the latest, breaking over the $5.1 trillion barrier for the first time ever, after jumping $121 billion the week prior. The past 2 weeks were the 5th and 6th largest weekly increases ever and the largest in history if you exclude 4 coronavirus lockdown panic weeks in March and April 2020. The failure of Silicon Valley Bank has raised concerns over uninsured bank deposits, and large investors are fleeing into money funds. Over the past 52 weeks, money fund assets have risen $571 billion, or 12.5%, with Retail MMFs rising by $426 billion (29.7%) and Inst MMFs rising by $145 billion (4.7%). ICI shows assets up by $397 billion, or 8.4%, year-to-date in 2023, with Institutional MMFs up $213 billion, or 7.0% and Retail MMFs up $184 billion, or 11.1%. The weekly release says, "Total money market fund assets increased by $117.41 billion to $5.13 trillion for the week ended Wednesday, March 22, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $131.84 billion and prime funds decreased by $10.83 billion. Tax-exempt money market funds decreased by $3.61 billion." ICI's stats show Institutional MMFs surging $102.2 billion (after jumping $100.8 billion the prior week) and Retail MMFs rising $15.2 billion (after an increase of $20.2 billion) in the latest week. Total Government MMF assets, including Treasury funds, were $4.260 trillion (83.0% of all money funds), while Total Prime MMFs were $765.3 billion (14.9%). Tax Exempt MMFs totaled $107.0 billion (2.1%). ICI explains, "Assets of retail money market funds increased by $15.21 billion to $1.86 trillion. Among retail funds, government money market fund assets increased by $26.80 billion to $1.26 trillion, prime money market fund assets decreased by $9.10 billion to $506.55 billion, and tax-exempt fund assets decreased by $2.49 billion to $96.40 billion." Retail assets account for over a third of total assets, or 36.3%, and Government Retail assets make up 67.6% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $102.20 billion to $3.27 trillion. Among institutional funds, government money market fund assets increased by $105.04 billion to $3.00 trillion, prime money market fund assets decreased by $1.72 billion to $258.78 billion, and tax-exempt fund assets decreased by $1.12 billion to $10.55 billion." Institutional assets accounted for 63.7% of all MMF assets, with Government Institutional assets making up 91.8% of all Institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets increased by $261.1 billion month-to-date through 3/22 to a record $5.514 trillion. (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.)
