Money market mutual fund assets rose by $22.39 billion to $2.810 trillion in the week ended Dec. 29, according to the Investment Company Institute's latest report. Money fund assets had decreased for two weeks in a row, falling $38.6 billion then $9.3 billion, following a jump of $25.4 billion in the first week of December. Year-to-date through Dec. 29, money fund assets have decreased by $483 billion, or 14.7%, but assets have managed to hold above or around the $2.8 trillion level since June 2010. Money fund assets hit a record high of $3.9 trillion in January 2009, plunged to $3.3 trillion by the end of 2009, then broke below the $3.0 trillion level in March of 2010.
ICI also released its latest monthly "Trends in Mutual Fund Investing," which showed that money market fund assets increased by $25.5 billion, or 0.9%, in November 2010 to $2.812 trillion. This represents the largest increase in assets since January 2009, when assets rose by over $90 billion. Year-to-date in 2010, money fund assets have decreased by $504 billion, or 15.2%, according to ICI's monthly data series.
ICI's monthly release says, "Money market funds had an inflow of $25.03 billion in November, compared with an outflow of $11.21 billion in October. Funds offered primarily to institutions had an inflow of $29.13 billion. Funds offered primarily to individuals had an outflow of $4.10 billion." Liquid assets of stock funds remain near a record low at 3.7% and the number of money funds covered by ICI dropped to 651 from 665 a month ago and from 710 at the start of the year.
The ICI also released (to subscribers only) its latest "Month-End Portfolio Holdings of Taxable Money Market Funds, which showed Repurchase Agreement holdings jumped in November 2010. Repos increased by $26.6 billion, or 4.8%, to $575.9 billion in the latest month and have increased by $86.3 billion, or 17.1% YTD. Repo, the only money fund holding to show an increase in 2010, remains the largest percentage of taxable money fund portfolios with 23.1% on average.
Certificates of Deposit, the second largest money fund holding, fell slightly to $562.4 billion, or 22.6%, and Commercial Paper, now the third largest, was flat at $384 billion, or 15.4%. U.S. Government Agency Securities fell by $26.0 billion, or 6.4%, to $383.0 billion, or 15.4% of taxable money fund assets. Treasury Bills and Securities increased by $21.7 billion, or 7.1%, to $326.1 billion, or 13.1% of assets. Notes (Bank and Corporate) increased by $1.7 billion to $161.3 billion, or 6.5% of assets, and Other investments inched higher to $85.6 billion, or 3.4%.
