The Investment Company Institute released its latest monthly "Trends in Mutual Fund Investing: December 2009 and its latest weekly "ICI Reports Money Market Mutual Fund Assets" last night. Both series continue to show significant money fund asset declines. The December numbers show money fund assets declined by $512.7 billion, or 13.4%, in 2009, falling to $3.3196 trillion as of Dec. 31. Money funds percentage of all mutual fund assets fell from 39.9% of the $9.6011 trillion in assets on Dec. 31, 2008, to 29.8% of the $11.1264 trillion as of 12/31/09.
ICI's weekly release says, "Total money market mutual fund assets decreased by $21.93 billion to $3.218 trillion for the week ended Wednesday, January 27.... Taxable government funds decreased by $6.14 billion, taxable non-government funds decreased by $12.58 billion, and tax-exempt funds decreased by $3.21 billion." Year-to-date in 2010, money fund assets have decline by about $75 billion, or 2.3%.
ICI's monthly stats show money fund assets rising slightly in December, up $3.5 billion. Taxable funds rose $10.7 billion to $2.9221 trillion while Tax-Free money funds fell $7.2 billion to $397.5 billion. ICI's "Trends" says, "Money market funds had an outflow of $161 million in December, compared with an outflow of $48.55 billion in November. Funds offered primarily to institutions had an inflow of $17.50 billion. Funds offered primarily to individuals had an outflow of $17.66 billion." Net new cash flow to money funds totalled negative $536.65 billion in 2009 vs. a positive net new cash flow of $637.11 billion in 2008. Liquid assets of stock mutual fund remain near record lows at 3.6%.
ICI also released its "Month-End Portfolio Holdings of Taxable Money Market Funds." It shows that CD holdings surged in December, rising $32.8 billion to $671.7 billion. CDs remain the largest holding in money funds at 23.0%. Second is U.S. Government Agency Securities at 19.1% ($557.6 billion), while Commercial Paper is third at 17.9% ($522.7 billion). Repos fell to fourth place with $490.7 billion, or 16.8% (down $92.6 billion in Dec.). Treasury securities account for 14.0% of holdings ($410.3 billion), Notes (Corp and Bank) account for 5.9% (173.2 billion), and Other securities account for 3.2%.
For more on asset flows during 2009, see Crane Data's latest Money Fund Intelligence Distribution Survey. Click here for the release on the SEC's Money Market Fund Reforms, or see our previous stories below. The full Final Rules should be posted here later today or early next week.
