Daily Links Archives: June, 2026
ICI: Money Funds Break $7.9 Trillion
The Investment Company Institute's latest weekly "Money Market Fund Assets" report shows money fund assets jumping $39.7 billion to a record $7.919 trillion, after they decreased $21.5 billion the previous week. MMF assets are up by $904 billion, or 12.9%, over the past 52 weeks (through 6/17/26), with Institutional MMFs up $710 billion, or 17.2% and Retail MMFs up $194 billion, or 6.7%. Year-to-date in 2026, MMF assets are up by $186 billion, or 2.4%, with Institutional MMFs up $178 billion, or 3.8% and Retail MMFs up $8 billion, or 0.3%. ICI's weekly release says, "Total money market fund assets increased by $39.67 billion to $7.92 trillion for the week ended Wednesday, June 17, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $36.26 billion and prime funds increased by $40 million. Tax-exempt money market funds increased by $3.37 billion." ICI's stats show Institutional MMFs increasing $49.5 billion and Retail MMFs decreasing $9.8 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.540 trillion (82.5% of all money funds), while Total Prime MMFs were $1.231 trillion (15.6%). Tax Exempt MMFs totaled $148.3 billion (1.8%). It explains, "Assets of retail money market funds decreased by $9.79 billion to $3.09 trillion. Among retail funds, government money market fund assets decreased by $8.71 billion to $1.96 trillion, prime money market fund assets decreased by $2.95 billion to $986.52 billion, and tax-exempt fund assets increased by $1.87 billion to $134.32 billion." Retail assets account for 39.3% of the total, and Government Retail assets make up 63.8% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $49.46 billion to $4.83 trillion. Among institutional funds, government money market fund assets increased by $44.97 billion to $4.57 trillion, prime money market fund assets increased by $2.99 billion to $244.38 billion, and tax-exempt fund assets increased by $1.50 billion to $14.01 billion." Institutional assets accounted for 60.7% of all MMF assets, with Government Institutional assets making up 94.7% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $63.7 billion to $8.355 trillion month-to-date in June (as of 6/17). Assets hit a record high on June 16 of $8.370 trillion. Assets increased $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose $63.7 billion in July and $6.7 billion last June. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than Crane's asset series.
Assets Hit Record $8.37T; Fed Holds
Money market mutual fund assets jumped by $80.0 billion on Tuesday (June 16) to a record high of $8.370 trillion, according to our Money Fund Intelligence Daily. Assets have risen $41.7 billion in the week through Tuesday, and they've increased by $78.8 billion in June month-to-date (through 6/16). (Some are speculating that the increase is the proceeds of the SpaceAI IPO.) In other news, a release, "Federal Reserve Issues FOMC Statement," tells us, "The Federal Open Market Committee approved the following statement for release by a 12 – 0 vote: The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve's dual mandate. The Committee reaffirmed its policy of maintaining ample reserves in the banking system. Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little." They write, "Inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability."
Fitch Ratings' Q1'26 LGIP Update
Fitch Ratings published "U.S. Local Government Investment Pools Monitor: 1Q26" recently. They tell us, "Fitch Ratings' two local government investment pool (LGIP) indices reflected asset declines in the first quarter of 2026 (1Q26). Total assets for the Fitch Liquidity LGIP Index and the Fitch Short-Term LGIP Index were $661.5 billion at quarter end, down $4.56 billion QoQ but up $6.9 billion YoY. The 1.1% YoY growth rate from 1Q25 to 1Q26 was the slowest recorded to date since Fitch created the indices in 2017. This extends the trend of decreasing single-digit YoY growth seen in recent quarters. The Fitch Liquidity LGIP Index declined 0.2% QoQ and the Fitch Short-Term LGIP Index declined by 1.5% QoQ, compared with average first quarter changes of a 5.3% increase and a 1.6% decline, respectively, over the past three years." The update continues, "Both Fitch indices ended the quarter with lower average yield profiles, as net yields averaged 3.70% for the Liquidity Index and 3.93% for the Short-Term Index, a decline of 13 bps and 6 bps, respectively. The decline reflects the lagged effect of the Fed's rate cuts in late 2025, as well as a lower-rate environment during 1Q26, when the Fed held policy rates steady. As reinvestment opportunities reset at lower levels, LGIP managers faced continued pressure on portfolio yields. The WAM for the Fitch Liquidity LGIP Index rose to 45 days in Q1 from 39 days in Q425, remaining above prime '2a-7' money market funds (MMFs) at 33 days. The Fitch Short-Term LGIP Index ended the quarter with a duration of 1.38 years, up 10% since last quarter. With the Fed on hold, managers selectively extended along the curve to lock in available yields despite expectations for additional easing becoming less certain amid persistent inflation and broader economic uncertainty, resulting in modestly longer portfolio profiles." The brief adds, "The Fitch Liquidity LGIP Index increased exposure to commercial paper by 3.8% while reducing exposure to asset-backed securities by 3.5% QoQ, consistent with stronger CP issuance and supply during the quarter. Total outstanding CP grew to $1.42 trillion, representing a $99 billion increase over the quarter. These allocation shifts reflect managers' active response to evolving market supply conditions and continued focus on liquidity and yield."
Money Fund Yields Flat at 3.45%
Money fund yields (7-day, annualized, simple, net) were unchanged at 3.45% on average during the week ended Friday, June 12 (as measured by our Crane 100 Money Fund Index), after increasing one bp the week prior. Fund yields hadn't been below 3.5% since November 2022, and they are down from a recent high of 5.20% in November 2023. They should remain flat in coming days (and weeks) since the Fed left short-term rates unchanged seven weeks ago. Yields were 3.47% on 4/30/26 and 3/31/26, 3.49% on 2/28/26, 3.50% on 1/31/26, 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 713), shows a 7-day yield of 3.35%, unchanged in the week through Friday. Prime Inst money fund yields were down 1 bp at 3.57% in the latest week. Government Inst MFs were unchanged at 3.44%. Treasury Inst MFs were up 1 bp at 3.42%. Treasury Retail MFs currently yield 3.19%, Government Retail MFs yield 3.17% and Prime Retail MFs yield 3.36%, Tax-exempt MF 7-day yields were up 50 bps to 2.23%. Money market mutual fund assets have now hit an all-time record high of $8.346 trillion on June 4, the previous record of $8.334 trillion was seen two days prior (6/2), and prior to that, $8.292 trillion on May 29, according to our Money Fund Intelligence Daily. Assets have fallen $35.3 billion in the week through Friday, and they've decreased by $3.1 billion in June month-to-date (through 6/12). MMF assets increased by $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased by $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose by $63.7 billion in July and $6.7 billion last June. Weighted average maturities were at 42 days for the Crane MFA and 44 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (6/12), just 176 money funds (out of 824 total) yield under 3.0% with $229.1 billion in assets, or 2.8%, while the vast majority (648) of funds yield between 3.00% and 3.99% ($8.059 trillion, or 97.2%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.29%, after falling 1 bp three weeks prior. The latest Brokerage Sweep Intelligence, with data as of June 12, shows no changes over the past week. Four of the 10 major brokerages tracked by our BSI offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch, Morgan Stanley and Schwab.
Barron's on Money-Market Funds
Barron's writes "Money-Market Funds Are as Appealing as Ever. Just Don't Back Up the Truck." The article states, "Money-market funds have a lot going for them right now. Not only do they offer safety from turbulent markets, but investors can also earn an attractive 3.45% yield, according to Crane's index of the 100 largest money-market funds. That's down from 3.58% at the start of the year, but stable for the past few months and quite a bit higher than most investors expected for midyear. The outlook at the end of February was that the Federal Reserve would lower interest rates three times through mid-2027, which would have led to a drop in money-market fund yields. But the start of the Iran war led to higher energy prices and a jump in inflation expectations, reducing the odds that the Fed would lower rates. The central bank's next meeting is June 17, and investors' expectations are that rates will remain stable. Later this year, there may even be a hike." They quote Matthew Bartolini, global head of research strategists at State Street Investment Management, "The base case assumption that the return you were going to get from money funds would be lower has been flipped on its head." The piece tells us, "His firm launched the State Street Prime Money Market (MMK) exchange-traded fund in February. It yields 3.61% and allows for intraday trading, something that investors with portfolios made up of ETFs were looking for in a money-market fund. BlackRock also launched a money-market fund around the same time: the iShares Prime Money Market ETF (PMMF), which now yields 3.63%. Meanwhile, the yield on the S&P 500 index has fallen to just 1.1% as stock prices have risen a lot faster than dividend growth in recent years." It adds, "Given the recent interest-rate and stock market volatility, it isn't surprising that investors have clung to the safety of money-market funds. Total money-market fund assets remain near a record at $7.9 trillion for the week ended on June 10, according to the Investment Company Institute. The recommendation to 'T-Bill and Chill,' by DoubleLine CEO Jeffrey Gundlach in October 2023 remains as current as ever." See also, Bloomberg's, "Money-Market Funds Are Hot Right Now. Here's Why."
ICI: MMF Assets Fall from Record
The Investment Company Institute's latest weekly "Money Market Fund Assets" report shows money fund assets falling $21.5 billion to $7.873 trillion, after they increased $109.3 billion to a record high of $7.894 trillion the previous week. MMF assets are up by $866 billion, or 12.4%, over the past 52 weeks (through 6/10/26), with Institutional MMFs up $658 billion, or 16.0% and Retail MMFs up $208 billion, or 7.2%. Year-to-date in 2026, MMF assets are up by $139 billion, or 1.8%, with Institutional MMFs up $121 billion, or 2.6% and Retail MMFs up $18 billion, or 0.6%. ICI's weekly release says, "Total money market fund assets decreased by $21.48 billion to $7.87 trillion for the week ended Wednesday, June 10, the Investment Company Institute reported.... Among taxable money market funds, government funds decreased by $13.60 billion and prime funds decreased by $6.64 billion. Tax-exempt money market funds decreased by $1.23 billion." ICI's stats show Institutional MMFs decreasing $16.2 billion and Retail MMFs decreasing $5.3 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.497 trillion (82.5% of all money funds), while Total Prime MMFs were $1.231 trillion (15.6%). Tax Exempt MMFs totaled $145.0 billion (1.8%). It explains, "Assets of retail money market funds decreased by $5.25 billion to $3.10 trillion. Among retail funds, government money market fund assets decreased by $2.53 billion to $1.97 trillion, prime money market fund assets decreased by $2.09 billion to $989.47 billion, and tax-exempt fund assets decreased by $623 million to $132.45 billion." Retail assets account for 39.3% of the total, and Government Retail assets make up 63.8% of all Retail MMFs. They add, "Assets of institutional money market funds decreased by $16.23 billion to $4.78 trillion. Among institutional funds, government money market fund assets decreased by $11.07 billion to $4.52 trillion, prime money market fund assets decreased by $4.55 billion to $241.39 billion, and tax-exempt fund assets decreased by $612 million to $12.51 billion." Institutional assets accounted for 60.7% of all MMF assets, with Government Institutional assets making up 94.7% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $27.2 billion to $8.319 trillion month-to-date in June (as of 6/10), assets hit a record high on June 4 of $8.346 trillion. Assets increased $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose $63.7 billion in July and $6.7 billion last June. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than Crane's asset series.
Fitch Primer on Fund Tokenization
Earlier this week, Fitch Ratings released a paper, "Global Funds and Asset Managers: Fund Tokenization – A Primer," which comments, "Money market funds (MMFs), and more broadly –- cash-like funds, have been among the earliest affected by tokenization. Historically, MMFs have played a central role in the financial system by providing liquidity, capital preservation, and short-term cash management tools. More recently, tokenized MMFs, particularly those invested in short-dated US Treasuries, have grown rapidly. Estimates by the Bank for International Settlements suggest that assets under management in tokenized short term, cash-like funds increased from about USD770 million at the end of 2023 to nearly USD9 billion by October 2025, reflecting rising institutional interest in on-chain cash products. Nevertheless, these figures remain small compared to the global MMF assets under management of USD13 trillion as of December 2025, according to data from Investment Company Institute." They write, "Tokenized MMFs operate under traditional fund regulations while also facing fragmented digital asset rules, complicating cross border distribution. Tokenization also introduces additional operational risks, including technology dependencies and cybersecurity considerations. We nevertheless expect assets under management to rise as regulation evolves and institutional adoption increases." The piece states, "Tokenization is primarily a distribution and record-keeping technology. The underlying assets held by the fund, such as US treasury bills and repurchase agreements, remain traditional, off chain instruments held with a custodian. This report focuses exclusively on fund tokenization and does not cover stablecoins or other cryptocurrencies, such as Bitcoin." Discussing "Tokenized MMFs as Collateral," Fitch adds, "This demand driver is prominent with tokenized MMFs. Pilot programs in the US, UK, and EU indicate growing industry acceptance in controlled environments. Broader uptake in traditional finance industry will depend on further legal clarity and standardization around how tokenized MMFs are recognized and enforced within existing collateral frameworks." See also, the WSJ article, "JPMorgan, Citi and Big Banks Plan New Tokenized Deposit System to Answer Crypto," which says, "The largest U.S. banks plan to launch a tokenized deposit network next year, an attempt to stave off threats from crypto companies that are seeking to wade deeper into their territory under President Trump."
Federated MMR Digital Treasury Fund
A press release titled, "Federated Hermes launches its first fund designed for compliance with the GENIUS Act," tells us, "Federated Hermes (FHI) ... introduced Federated Hermes Money Market Management Digital Treasury Fund–Reserve Shares (OFFXX). Federated Hermes Money Market Management Digital Treasury Fund seeks to provide current income consistent with stability of principal by investing in a portfolio of US dollar cash and US Treasury investments that mature within 93 days and overnight repurchase agreements fully collateralized by US Treasury securities. In pursuing its investment objective and implementing its investment strategies, the fund intends to comply with Rule 2a-7 under the Investment Company Act of 1940." It explains, "The fund is Federated Hermes' first product designed to satisfy the requirements for eligible reserve assets that payment-stablecoin issuers are required to maintain under the Guiding and Establishing National Innovation for US Stablecoins Act, or GENIUS Act, which was passed in July 2025. The Act provides a regulatory framework for stablecoins, a type of digital asset, to be backed by high-quality liquid assets on a 1:1 basis. While the fund itself does not employ blockchain technology with respect to the Reserve Shares, fund shares are expected to be used primarily by participants in the broader blockchain ecosystem. Reserve Shares of the fund may be purchased and held by individuals, payment-stablecoin issuers, and institutional investors directly or through intermediaries, including intermediaries that use blockchain technology to maintain a record of share ownership for their customers. In the future, the fund may seek to employ blockchain technology to maintain a record of share ownership with respect to the Reserve Shares or additional share classes." The release continues, "For more than 50 years, Federated Hermes has been a leader in money market innovation, launching the first fund to include 'money market' in its name in 1974. Drawing on that experience, the fund is managed by Susan Hill, CFA, senior portfolio manager and head of government liquidity group, and John Wyda, CFA, senior portfolio manager and senior investment analyst. The firm manages a record $684.7 billion in money market assets as of March 31, 2026." Paul Uhlman, president and chief executive officer of the Federated Advisory Companies, comments, "Liquidity management is a core business of Federated Hermes and we offer one of the largest menus of targeted solutions. Federated Hermes is proud to advance strategic initiatives that bring together the strength of money market investments and our management expertise. As the industry continues to explore the digital space and tokenized money market offerings, we continue to vet opportunities that employ the efficiency and transparency of blockchain technology." For more on Stablecoin Reserve funds, see these Crane Data News stories: "BNY Files for Dreyfus On-Chain Liquidity Fund for Stablecoin Reserves" (5/22/26), "Fidelity Files for Reserves Digital Fund, 5th Stablecoin Reserve MMF" (3/23/26), "Dec. MFI: MMFs Hit $8.0T, Top 10; JPM '26 Outlook; Stablecoin Reserves" (12/5/25), "State Street Files for Stablecoin Reserves MMF; BNY's Stephanie Pierce" (11/19/25), "BNY Stablecoin Reserves Goes Live; ICI: Assets Eke Out Record $7.5T" (11/14/25),"BNY's Vince on Q3 Call: Money Market Evolution, Dreyfus, Stablecoins" (10/22/25), "BlackRock Breaks $1 Trillion in Money Funds; Offers Stablecoin Reserve" (10/17/25), "Sept. MFI: Assets Break $7.6T; Stablecoin Reserves; JPM on Offshore MFs" (9/8/25), "BNY Dreyfus to Launch Stablecoin Reserves Fund; Joins Goldman, Circle" (8/20) and "Goldman Files to Launch Stablecoin Reserves Fund; Circle Q2 Earnings" (8/13/25).
Crane 100 MF Index Up to 3.45%
Money fund yields (7-day, annualized, simple, net) were up 1 basis point to 3.45% on average during the week ended Friday, June 5 (as measured by our Crane 100 Money Fund Index), after increasing two bps the week prior. Fund yields hadn't been below 3.5% since November 2022, and they are down from a recent high of 5.20% in November 2023. They should remain flat in coming days (and weeks) since the Fed left short-term rates unchanged six weeks ago. Yields were 3.47% on 4/30/26 and 3/31/26, 3.49% on 2/28/26, 3.50% on 1/31/26, 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 710), shows a 7-day yield of 3.35%, unchanged in the week through Friday. Prime Inst money fund yields were unchanged at 3.58% in the latest week. Government Inst MFs were unchanged at 3.44%. Treasury Inst MFs were unchanged at 3.41%. Treasury Retail MFs currently yield 3.18%, Government Retail MFs yield 3.17% and Prime Retail MFs yield 3.36%, Tax-exempt MF 7-day yields were up 18 bps to 1.73%. Money market mutual fund assets have now hit an all-time record high of $8.346 trillion on June 4, the previous record of $8.334 trillion was seen two days prior (6/2), and prior to that, $8.292 trillion on May 29, according to our Money Fund Intelligence Daily. Assets have jumped $32.1 billion in the week through Friday, and they've increased by $32.1 billion in June month-to-date (through 6/5). MMF assets increased by $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased by $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose by $63.7 billion in July and $6.7 billion last June. Weighted average maturities were at 42 days for the Crane MFA and 44 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (6/5), just 171 money funds (out of 821 total) yield under 3.0% with $191.6 billion in assets, or 2.3%, while the vast majority (650) of funds yield between 3.00% and 3.99% ($8.132 trillion, or 97.7%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.29%, after falling 1 bp two weeks prior. The latest Brokerage Sweep Intelligence, with data as of June 5, shows no changes over the past week. Four of the 10 major brokerages tracked by our BSI offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch, Morgan Stanley and Schwab.
Bloomberg: Money Funds Hot Strategy
Bloomberg writes, "Chilling in Money-Market Funds is the Hot Retail Strategy Now." The article, written by Alex Harris and Carter Johnson, states, "The stock market keeps setting records. Bitcoin has minted millionaires. Gold has peaked at new levels. Yet one of the most popular trades is to sit in cash or, more precisely, money-market funds. These plain‑vanilla vehicles, which invest in short‑term debt, have become the default parking spot for everyone from retail savers to corporate treasurers. The US money-market industry now holds a record $8.29 trillion -- almost twice the size of Japan's economy -- after inflows topped $1 trillion last year, according to Crane Data LLC, which tracks the industry. The strategy's popularity has been accompanied by a Wall Street catchphrase, 'T-bill and chill,' which has come to signify investors' preference for the short-term Treasuries these funds often hold." It quotes Peter Crane, president of Crane Data, "Convenience is king with cash. It's the ultimate hedge when other assets like Bitcoin and gold have done more going up and going down.'" The piece explains, "Stability in finance has been rare over the past decade as the Covid-19 pandemic, geopolitical conflicts and the rise of artificial intelligence unleashed uncertainty across global markets. The volatility has pushed safety-minded investors toward money-market funds, where the appeal is the combination of stability and returns. Yields on the 100 largest funds were near 3.5% at the end of April, according to a Crane Data index. To Amrita Bhasin, a 25-year-old tech worker in California, money-market funds feel easier to manage than, say, certificates of deposit, where cash is locked up for a specific period and subject to penalties. 'With money-market funds, I feel like I have more visibility and control over what's happening with my money,' she says. 'I want to understand where my money is, what yield I'm getting and how it's changing.'" The Bloomberg article adds, "While Wall Street forecasters have long warned that a 'wall of cash' would rush out of money-market funds and into riskier assets once the Fed started cutting interest rates, investors kept piling in last year even as the central bank lowered borrowing costs three times. Renewed market volatility in recent months, fueled in part by the Iran war and a spike in oil prices, has only reinforced the appeal of cashlike assets, with inflows continuing in 2026, according to Crane Data. 'I've been hearing the 'wall of cash' theory since money funds hit a trillion in 1997,' Crane says. 'That's the fallacy underneath the zero-sum thinking that people believe if something goes up, something else must go down.'"
MMFs Jump to New Record in June
The Investment Company Institute's latest weekly "Money Market Fund Assets" report shows money fund assets rising $109.3 billion to a new record high of $7.894 trillion, after they increased $13.4 billion the previous week. MMF assets are up by $878 billion, or 12.5%, over the past 52 weeks (through 6/3/26), with Institutional MMFs up $666 billion, or 16.1% and Retail MMFs up $212 billion, or 7.3%. Year-to-date in 2026, MMF assets are up by $161 billion, or 2.1%, with Institutional MMFs up $138 billion, or 3.0% and Retail MMFs up $23 billion, or 0.8%. ICI's weekly release says, "Total money market fund assets increased by $109.25 billion to $7.89 trillion for the week ended Wednesday, June 3, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $102.96 billion and prime funds increased by $7.96 billion. Tax-exempt money market funds decreased by $1.68 billion." ICI's stats show Institutional MMFs increasing $101.2 billion and Retail MMFs increasing $8.1 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.510 trillion (82.5% of all money funds), while Total Prime MMFs were $1.238 trillion (15.7%). Tax Exempt MMFs totaled $146.2 billion (1.9%). It explains, "Assets of retail money market funds increased by $8.10 billion to $3.10 trillion. Among retail funds, government money market fund assets increased by $6.94 billion to $1.98 trillion, prime money market fund assets increased by $3.00 billion to $991.56 billion, and tax-exempt fund assets decreased by $1.85 billion to $133.07 billion." Retail assets account for 39.3% of the total, and Government Retail assets make up 63.7% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $101.15 billion to $4.79 trillion. Among institutional funds, government money market fund assets increased by $96.02 billion to $4.53 trillion, prime money market fund assets increased by $4.96 billion to $245.94 billion, and tax-exempt fund assets increased by $170 million to $13.12 billion." Institutional assets accounted for 60.7% of all MMF assets, with Government Institutional assets making up 94.6% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $42.3 billion to $8.334 trillion month-to-date in June (as of 6/3), assets hit a record high on June 2 of $8.334 trillion. Assets increased $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose $63.7 billion in July and $6.7 billion last June. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than Crane's asset series.
WSJ: Study Claims Too Much Cash
The Wall Street Journal wrote earlier this week that, "We're Keeping Too Much Cash in Our Accounts These Days." They explain, "Most Americans couldn't cover an emergency expense of $1,000 without borrowing money. That's probably less of an issue for people who read a daily markets newsletter. In fact, many savers have too much cash, which sounds like a high-class problem. Sure, life throws us curveballs -- illness, divorce, unemployment -- so a little extra cushion can come in handy. But it's surprisingly costly to overdo it. About $5.6 trillion or 10% of Americans' liquid wealth is in low-yielding bank deposits. Trillions more sit in money-market mutual funds." The piece says, "People often keep it there longer than necessary for a variety of reasons. Maybe they receive interest or dividends and let the proceeds pile up. Often they're sitting on a lump sum and don't want to commit it all at once to riskier investments like stocks or bonds because markets seem frothy or they fear yields might rise." The article speculates, "Cash earns something these days, but not much -- basically zero after taxes and inflation. Over any longer period, the opportunity cost of holding it is likely to exceed that of poor timing in the stock market." It says, "Fidelity Investments ran the numbers for what would have happened to someone who invested $5,000 in U.S. stocks annually between 1980 and 2023 at the best and the worst possible juncture each year. A portfolio with perfect timing would have grown to nearly $5.6 million in the S&P 500 while the one with perfectly awful timing would grow to $4.3 million. `Leaving that money in cash throughout that span would have turned into just $350,000. That's extreme, but many of us keep too much dry powder for future opportunities." Finally, the WSJ claims, "Money-market funds tend to see big inflows after a selloff -- usually the time that stocks are poised for some of their strongest performance. Morningstar's 'Mind the Gap' study calculated that U.S. mutual-fund investors earned a significant 1.2 percentage points less than mutual funds on average over the past decade. Cash-like investments certainly have their place in a portfolio, and not just for emergencies. Owning something safe and liquid that doesn't rise and fall with stocks or interest rates makes more and more sense as one gets closer to tapping savings because it gives us the ability to ride out bear markets. But young savers with a long time horizon, and some wealthy ones closer to retirement, are costing themselves by holding too much cash for the wrong reasons."
Weekly Money Fund Portfolio Holdings
Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of May 29) includes Holdings information from 56 money funds (down 18 from a week ago), or $4.076 trillion (down from $4.687 trillion) of the $8.292 trillion in total money fund assets (or 49.2%) tracked by Crane Data. (Note: Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our May 12 News, "May MF Portfolio Holdings: Treasuries Plunge, Repo and Agencies Rise.") Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.886 trillion (down from $2.063 trillion a week ago), or 46.3%; Repurchase Agreements (Repo) totaling $1.437 trillion (down from $1.710 trillion a week ago), or 35.2%, and Government Agency securities totaling $432.6 billion (down from $494.0 billion a week ago), or 10.6%. Commercial Paper (CP) totaled $138.4 billion (down from $166.6 billion a week ago), or 3.4%. Certificates of Deposit (CDs) totaled $77.2 billion (down from $104.9 billion a week ago), or 1.9%. The Other category accounted for $63.6 billion or 1.6%, while VRDNs accounted for $40.8 billion or 1.0%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.886 trillion, Fixed Income Clearing Corp with $523.6B, the Federal Home Loan Bank with $276.8B, JP Morgan with $152.0B, Citi with $100.4B, Federal Farm Credit Bank with $89.8B, RBC with $88.1B, Wells Fargo with $85.2B, BNP Paribas with $76.8B and Credit Agricole with $51.5B. The Ten Largest Funds tracked in our latest Weekly include: JPMorgan 100% US Trs MM ($336.9B), JPMorgan US Govt MM ($324.8B), Fidelity Inv MM: Govt Port ($283.0B), Goldman Sachs FS Govt ($271.8B), State Street Inst US Govt ($211.1B), Morgan Stanley Inst Liq Govt ($210.3B), BlackRock Lq Treas Tr ($189.0B), BlackRock Lq FedFund ($186.9B), Fidelity Inv MM: MM Port ($163.8B) and Dreyfus Govt Cash Mgmt ($162.1B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
UBS Files for Stablecoin Reserves
A filing for the new UBS Liquid Reserves Fund explains, "The fund invests only in certain eligible reserve assets that payment stablecoin issuers are permitted to maintain under the Guiding and Establishing National Innovation for US Stablecoins Act (the 'GENIUS Act') and any regulations adopted thereunder. These eligible reserve assets include, and the fund intends to invest only in, cash, securities issued by the US Treasury with a remaining maturity of 93 days or less or issued with a maturity of 93 days or less, and overnight repurchase agreements collateralized by securities issued by the US Treasury and cash. The fund primarily intends to serve as a reserve asset for stablecoin issuers. The fund does not invest in stablecoins or stablecoin issuers. The fund has adopted a policy to invest 99.5% or more of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully (i.e., collateralized by cash and/or government securities) in order to qualify as a 'government money market fund' under federal regulations." It explains, "UBS Asset Management (Americas) LLC ('UBS AM') acts as the investment advisor. As investment advisor, UBS AM makes the fund's investment decisions. UBS AM selects money market instruments for the fund based on its assessment of relative values and changes in market and economic conditions.... Shares of the fund are expected to be held primarily by one or more stablecoin issuers as all or a portion of the reserve assets that back the outstanding stablecoins issued to their customers. Stablecoins generally are a type of cryptocurrency that are designed to maintain a stable value by pegging their value to another asset, such as a fiat currency like the US dollar, and stablecoin holders generally are permitted to redeem their stablecoins for a fixed amount of value. Although the fund does not invest in stablecoins or stablecoin issuers, the assets of the fund are expected to fluctuate depending on the creation (minting) of additional stablecoins or the redemption (burning) of outstanding stablecoins. Stablecoins and other digital assets that stablecoins may be used to purchase or sell may face periods of uncertainty and volatility that result in the potential for rapid or unexpected requests by one or more stablecoin issuers to redeem or purchase the fund's shares.... The minimum investment level for initial purchases generally is $1,000,000 for Institutional Shares; $50,000,000 for Preferred Shares; and $500,000,000 for Ultra Shares, as determined on a household basis." UBS also launched UBS Select 100% US Treasury - Token-Enabled share class (TOKXX) earlier this year for BNY's LiquidityDirect portal. (See the filing for TOKXX here.) Rob Sabatino, UBS AM Head of Global Liquidity Portfolio Management, comments, "Offering a GENIUS Act-compliant MMF in addition to a token-enabled MMF reflects UBS Asset Management's commitment to modernizing liquidity management. We are meeting the evolving needs of both traditional and digital-native clients by combining the stability of institutional cash strategies with the efficiency of tokenized infrastructure. This builds on our broader digital asset initiatives, including the 2024 launch of the UBS USD Money Market Investment Fund Token ('uMINT'), our tokenized money market fund in Singapore."
Bloomberg: MMF Assets Record $8.3T
Bloomberg writes that the "Dash for Cash Sends Money-Fund Assets to Record $8.3 Trillion." The article states, "Investors boosted the total amount in US money-market funds to a record $8.281 trillion as uncertainty surrounding the Federal Reserve's monetary policy path fuels demand for cash-like assets. Some $66 billion rushed into the money-market fund industry in the week ending May 28, according to the latest figures from Crane Data LLC. About $41 billion of that came on Thursday as investors adjusted their portfolios before month's end. In all, the funds have attracted about $172 billion so far this year." The piece tells us, "The recent inflows have come as traders abandoned bets that the Federal Reserve will resume cutting interest and began wagering that a hike would be needed to help quell a resurgence of inflation tied to the Iran war. Swaps markets imply a roughly 60% chance that officials increase rates by a quarter-point this year. To Deutsche Bank strategist Steven Zeng, the recalibration is fueling demand for front-end US rates, which -- along with other types of short-term securities -- make up the holdings of most money-market funds. As Fed expectations shifted from cuts to hikes, much of that repricing is captured in the bill curve, meaning more attractive yields,' he said." Bloomberg adds, "Appetite for money-market funds has been rising for years thanks to their attractive yields and ease of access for investors ranging from Wall Street professionals to corporate treasurers and everyday American savers. The funds also tend to be faster than other investment vehicles to pass along higher yields to investors. The seven-day average yield for US money funds was 3.34% as of May 28, according to Crane Data."
