MMF Assets Drop for 4th Week
Money market fund assets fell for the fourth week in a row, their first string of declines (totaling $104.7 billion) following 15 straight weeks of inflows (during which time assets increased by $1.175 trillion). (June 15 was a quarterly corporate tax date.) ICI's latest weekly "Money Market Fund Assets" report says, "Total money market fund assets decreased by $33.18 billion to $4.68 trillion for the week ended Wednesday, June 17, the Investment Company Institute reported.... Among taxable money market funds, government funds decreased by $35.43 billion and prime funds increased by $3.36 billion. Tax-exempt money market funds decreased by $1.12 billion." ICI's stats show Institutional MMFs falling $35.1 billion and Retail MMFs increasing $2.0 billion. Total Government MMF assets, including Treasury funds, were $3.787 trillion (80.8% of all money funds), while Total Prime MMFs were $764.7 billion (16.3%). Tax Exempt MMFs totaled $132.7 billion, 2.8%. Money fund assets are up an eye-popping $1.053 trillion, or 29.0%, year-to-date in 2020, with Inst MMFs up $1.159 trillion (59.1%) and Retail MMFs up $193 billion (14.1%). Over the past 52 weeks, ICI's money fund asset series has increased by $1.500 trillion, or 47.1%, with Retail MMFs rising by $341 billion (27.9%) and Inst MMFs rising by $1.159 trillion (59.1%). They explain, "Assets of retail money market funds increased by $1.96 billion to $1.56 trillion. Among retail funds, government money market fund assets increased by $2.89 billion to $984.25 billion, prime money market fund assets decreased by $87 million to $460.70 billion, and tax-exempt fund assets decreased by $843 million to $118.12 billion." Retail assets account for just over a third of total assets, or 33.4%, and Government Retail assets make up 63.0% of all Retail MMFs. ICI adds, "Assets of institutional money market funds decreased by $35.14 billion to $3.12 trillion. Among institutional funds, government money market fund assets decreased by $38.31 million to $2.80 trillion, prime money market fund assets increased by $3.45 billion to $304.03 billion, and tax-exempt fund assets decreased by $274 million to $14.54 billion." Institutional assets accounted for 66.6% of all MMF assets, with Government Institutional assets making up 89.8% of all Institutional MMF totals. (Note: Crane Data has its own separate daily and monthly asset series.)
