News Archives: January, 2026
The Investment Company Institute's latest weekly "Money Market Fund Assets" report shows money fund assets surging higher by $59.9 billion to a record $7.733 trillion after increasing by $7.5 billion the previous week. Assets have risen in 13 of the last 15 weeks and 21 of the past 24 weeks. MMF assets are up by $883 billion, or 12.9%, over the past 52 weeks (through 12/30/25), with Institutional MMFs up $541 billion, or 13.1% and Retail MMFs up $342 billion, or 12.5%. Year-to-date, MMF assets are also up by $883 billion, or 12.9%, with Institutional MMFs up $541 billion, or 13.1% and Retail MMFs up $342 billion, or 12.5%. (Note: Happy New Year from Crane Data! Thanks for your readership and support in 2025 and best of luck in 2026!)
ICI's weekly release says, "Total money market fund assets increased by $59.91 billion to $7.73 trillion for the week ended Tuesday, December 30, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $63.13 billion and prime funds decreased by $4.99 billion. Tax-exempt money market funds increased by $1.76 billion." ICI's stats show Institutional MMFs increasing $50.8 billion and Retail MMFs increasing $9.1 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.364 trillion (82.2% of all money funds), while Total Prime MMFs were $1.219 trillion (15.9%). Tax Exempt MMFs totaled $150.3 billion (1.9%).
It explains, "Assets of retail money market funds increased by $9.14 billion to $3.08 trillion. Among retail funds, government money market fund assets increased by $6.58 billion to $1.94 trillion, prime money market fund assets increased by $980 million to $996.66 billion, and tax-exempt fund assets increased by $1.57 billion to $137.81 billion." Retail assets account for 39.8% of the total, and Government Retail assets make up 63.0% of all Retail MMFs.
They add, "Assets of institutional money market funds increased by $50.77 billion to $4.66 trillion. Among institutional funds, government money market fund assets increased by $56.55 billion to $4.42 trillion, prime money market fund assets decreased by $5.97 billion to $222.06 billion, and tax-exempt fund assets increased by $186 million to $12.44 billion." Institutional assets accounted for 60.2% of all MMF assets, with Government Institutional assets making up 94.9% of all institutional MMF totals.
According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $130.6 billion to a record $8.113 trillion month-to-date in December (as of 12/30). Assets increased by $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, $6.7 billion in June and $100.9 billion in May. MMFs fell by $24.4 billion in April, but rose $2.8 trillion in March, $94.2 billion in February and $52.8 billion in January. They jumped $110.9 billion last December. 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.
In other news, Kiplinger's writes on "Where to Stash Cash as Yields Fall, According to Advisers." They tell us, "The Federal Reserve's interest rate cuts during the fall are having a ripple effect across most consumer savings rates. The federal funds rate -- the rate banks use to borrow and lend to one another -- recently dropped to a target range of 3.75% to 4%, the lowest level in about three years. And the consensus among economists is that rates will continue to fall modestly in 2026, perhaps by another half a percentage point or so by year-end."
The piece says, "The result for savers: The days of easily earning 5% or more on cash have passed, financial advisers say. 'Many people were getting used to 4% and 5% yields on short-term money, but this is quickly drifting down, to as low as 2% to 3% in some cases,' says certified financial planner Todd Calamita, president of Calamita Wealth Management in Charlotte, N.C. 'Complacency can cost people thousands of dollars if they don't keep a watchful eye on the interest their accounts are paying.'"
It continues, "Today's lower savings rates, though, are still higher than cash yields have been for much of the past 15 years -- 1% or less was common during the period between the Great Recession and the pandemic -- and, on average, they continue to outpace inflation. So you can still earn a solid real return if you shop around."
Kiplinger's comments, "If you want fuss-free, nearly instant access to your cash, your best bet is a high-yield savings account or a money market deposit account. Many banks and credit unions are paying about 3.5% on these federally insured accounts now, while some online banks are promoting rates of 4% or better."
They add, "Sold by mutual fund and investment companies, money market funds invest in high-quality short-term Treasury bills and municipal and corporate debt. While they're not backed by the Federal Deposit Insurance Corp., they aim to maintain a stable net asset value of $1 per share."
