The Investment Company Institute released its latest monthly "Trends in Mutual Fund Investing" and "Month-End Portfolio Holdings of Taxable Money Funds" for April 2023 on Tuesday. The monthly Trends shows money fund totals hitting record levels again in April after March's historic jump. The March jump ($371.0 billion increase) was the third largest monthly increase ever and the largest in history if you exclude 2 coronavirus lockdown panic months in March and April 2020. ICI's monthly "Trends" report shows that money fund assets increased $8.4 billion in April to a record $5.247 trillion. Bond fund assets also increased, jumping $23.3 billion to $4.653 trillion.
Money fund assets surpassed bond fund assets in September 2022 for the first time since 2010 and they continue to hold a sizeable lead last month. MMFs have increased by $723.7 billion over the past 12 months. (The bond fund totals don't include bond ETFs, which total $1.362 trillion as of 4/30, according to ICI.) (According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets broke the $5.8 trillion barrier last week and hit a record last Tuesday, 5/23, rising to $5.817 trillion, but they dipped slightly late last week. 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.)
Money funds' April asset increase follows gains of $371.0 billion in March, $60.0 billion in February, $31.5 billion in January, $105.3 billion in December, $63.4 billion in November, $36.8 billion in October and $4.2 billion in Sept. MMFs decreased $6.4 billion in August, but they increased $34.3 billion in July and $25.0 billion in June. MMFs decreased $8.0 billion last May. For the 12 months through April 30, 2023, money fund assets increased by $723.7 billion, or 16.0%. (For the month of May through 5/26, MMF assets have increased by $122.7 billion to $5.788 trillion according to MFI Daily. Crane Data's Prime asset totals have increased by $19.4 billion in May to $1.190 trillion.)
ICI's monthly release states, "The combined assets of the nation's mutual funds increased by $140.90 billion, or 0.6%, to $23.55 trillion in April, 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 $1.66 billion in April, compared with an outflow of $20.28 billion in March <b:>`_.... Money market funds had an outflow of $2.59 billion in April, compared with an inflow of $360.64 billion in March. In April funds offered primarily to institutions had an outflow of $21.58 billion and funds offered primarily to individuals had an inflow of $18.99 billion."
The Institute's latest statistics show that Taxable MMFs were higher while Tax Exempt MMFs were lower last month. Taxable MMFs increased by $13.0 billion in April to $5.139 trillion. Tax-Exempt MMFs decreased $4.6 billion to $107.7 billion. Taxable MMF assets increased year-over-year by $708.7 billion (16.0%), and Tax-Exempt funds rose by $15.1 billion over the past year (16.3%). Bond fund assets increased by $23.3 billion (after increasing $62.0 billion in March) to $4.653 trillion; they've decreased by $390.3 billion (-7.7%) over the past year.
Money funds represent 22.3% of all mutual fund assets (down 0.1% from the previous month), while bond funds account for 19.8%, according to ICI. The total number of money market funds was 280, down 1 from the prior month and down from 301 a year ago. Taxable money funds numbered 232 funds, and tax-exempt money funds numbered 48 funds.
ICI's "Month-End Portfolio Holdings" confirm a jump in Repo and a decrease in Treasuries last month. Repurchase Agreements remained the largest composition segment in April, increasing $18.8 billion, or 0.6%, to $3.011 trillion, or 58.6% of holdings. Repo holdings have increased $835.2 billion, or 38.4%, over the past year. (See our May 10 News, "May Portfolio Holdings: TDs, Repo, CDs, Agencies Jump; Treasuries Drop.")
Treasury holdings in Taxable money funds decreased last month after rising previously; they remain the second largest composition segment. Treasury holdings decreased $31.8 billion, or -3.2%, to $964.8 billion, or 18.8% of holdings. Treasury securities have decreased by $595.8 billion, or -38.2%, over the past 12 months. U.S. Government Agency securities were the third largest segment; they decreased $9.3 billion, or -1.3%, to $724.1 billion, or 14.1% of holdings. Agency holdings have increased by $367.1 billion, or 102.8%, over the past 12 months.
Certificates of Deposit (CDs) remained in fourth place; they increased by $45.7 billion, or 22.1%, to $252.5 billion (4.9% of assets). CDs held by money funds rose by $77.6 billion, or 44.3%, over 12 months. Commercial Paper remained in fifth place, up $8.5 billion, or 5.1%, to $175.0 billion (3.4% of assets). CP increased $47.2 billion, or 36.9%, over one year. Other holdings decreased to $2.5 billion (0.0% of assets), while Notes (including Corporate and Bank) increased to $8.9 billion (0.2% of assets).
The Number of Accounts Outstanding in ICI's series for taxable money funds increased to 57.948 million, while the Number of Funds was unchanged at 232. Over the past 12 months, the number of accounts rose by 673.4 thousand and the number of funds decreased by 10. The Average Maturity of Portfolios was 16 days, up 2 from the record low in February. Over the past 12 months, WAMs of Taxable money have decreased by 12.
