Money market fund assets decreased in the latest week, their 9th decline in 10 weeks and second month in a row of declines. ICI's latest weekly "Money Market Fund Assets" report says, "Total money market fund assets decreased by $18.26 billion to $4.57 trillion for the week ended Wednesday, July 29, the Investment Company Institute reported.... Among taxable money market funds, government funds decreased by $12.42 billion and prime funds decreased by $5.44 billion. Tax-exempt money market funds decreased by $400 million." ICI's stats show Institutional MMFs decreasing $14.9 billion and Retail MMFs decreasing $3.4 billion. Total Government MMF assets, including Treasury funds, were $3.691 trillion (80.8% of all money funds), while Total Prime MMFs were $757.3 billion (16.6%). Tax Exempt MMFs totaled $122.2 billion, 2.7%. We review their latest weekly stats, as well as their most recent monthly "Trends" data update, below.
ICI shows Money fund assets up a still eye-popping $938 billion, or 25.8%, year-to-date in 2020, with Inst MMFs up $770 billion (34.1%) and Retail MMFs up $168 billion (12.3%). Over the past 52 weeks, ICI's money fund asset series has increased by $1.292 trillion, or 39.4%, with Retail MMFs rising by $282 billion (22.4%) and Inst MMFs rising by $1.010 trillion (49.9%). (Crane Data's separate Money Fund Intelligence Daily series shows MMF assets down by $57.9 billion in July through 7/29 to $4.954 trillion. They fell back below $5.0 trillion on July 14.)
They explain, "Assets of retail money market funds decreased by $3.35 billion to $1.54 trillion. Among retail funds, government money market fund assets decreased by $756 million to $979.73 billion, prime money market fund assets decreased by $2.38 billion to $448.73 billion, and tax-exempt fund assets decreased by $222 million to $109.51 billion." Retail assets account for just over a third of total assets, or 33.6%, and Government Retail assets make up 63.7% of all Retail MMFs.
ICI adds, "Assets of institutional money market funds decreased by $14.91 billion to $3.03 trillion. Among institutional funds, government money market fund assets decreased by $11.66 billion to $2.71 trillion, prime money market fund assets decreased by $3.06 billion to $308.55 billion, and tax-exempt fund assets decreased by $179 million to $12.69 billion." Institutional assets accounted for 66.3% of all MMF assets, with Government Institutional assets making up 89.4% of all Institutional MMF totals.
The Investment Company Institute also released its monthly "Trends in Mutual Fund Investing" and its "Month-End Portfolio Holdings of Taxable Money Funds" for June 2020 late yesterday. The former report shows that money fund assets decreased by $133.5 billion to $4.635 trillion in June, after increases of $31.8 billion in May, $399.4 billion in April and $690.6 billion in March. For the 12 months through June 30, 2020, money fund assets have increased by a breathtaking $1.433 trillion, or 44.8%.
ICI's monthly "Trends" release states, "The combined assets of the nation's mutual funds increased by $251.31 billion, or 1.2 percent, to $21.41 trillion in June, according to the Investment Company Institute's official survey of the mutual fund industry. In the survey, mutual fund companies report actual assets, sales, and redemptions to ICI."
It explains, "Bond funds had an inflow of $66.88 billion in June, compared with an inflow of $43.16 billion in May.... Money market funds had an outflow of $133.78 billion in June, compared with an inflow of $30.63 billion in May. In June funds offered primarily to institutions had an outflow of $124.01 billion and funds offered primarily to individuals had an inflow of $9.77 billion."
ICI's latest statistics show that both Taxable MMFs and Tax Exempt MMFs lost assets last month. Taxable MMFs decreased by $129 billion in June to $4.505 trillion. Tax-Exempt MMFs decreased $4.1 billion to $129.7 billion. Taxable MMF assets increased year-over-year by $1.440 trillion (47.0%), while Tax-Exempt funds fell by $6.7 billion over the past year (-4.9%). Bond fund assets increased by $119 billion in June (2.6%) to $4.717 trillion; they've risen by $276 billion (6.2%) over the past year.
Money funds represent 21.6% of all mutual fund assets (down 0.9% from the previous month), while bond funds account for 22.0%, according to ICI. The total number of money market funds was 358, unchanged from the month prior and down from 367 a year ago. Taxable money funds numbered 278 funds, and tax-exempt money funds numbered 80 funds.
ICI's "Month-End Portfolio Holdings" confirms a jump in Treasuries and a drop in Repo and Agencies last month. Treasury holdings in Taxable money funds remain in first place among composition segments since surpassing Repo in April. Treasury holdings increased by $55.7 billion, or 2.4%, to $2.349 trillion, or 52.1% of holdings. Treasury securities have increased by $1.606 trillion, or 216.2%, over the past 12 months. (See our July 13 News, "July MF Portfolio Holdings: Repo Plunges, Treasuries Break $2.5 Trillion.")
Repurchase Agreements were in second place among composition segments; they decreased by $122.8 billion, or -11.9%, to $9.8.7 billion, or 20.2% of holdings. Repo holdings have dropped $225.5 billion, or -19.9%, over the past year. U.S. Government Agency securities were the third largest segment; they decreased $68.6 billion, or -7.7%, to $826.0 trillion, or 18.3% of holdings. Agency holdings have risen by $150.2 billion, or 22.2%, over the past 12 months.
Certificates of Deposit (CDs) stood in fourth place; they decreased by $21.0 billion, or -8.8%, to $217.7 billion (4.8% of assets). CDs held by money funds shrunk by $42.9 billion, or 16.5%, over 12 months. Commercial Paper remained in fifth place, up just $13.0 million, or 0.0%, to $213.0 billion (4.7% of assets). CP has decreased by $13.1 billion, or -5.8%, over one year. Other holdings decreased to $28.8 billion (0.6% of assets), while Notes (including Corporate and Bank) were down to $7.0 billion (0.2% of assets).
The Number of Accounts Outstanding in ICI's series for taxable money funds increased by 49,102 million to 39.357 million, while the Number of Funds was unchanged at 278. Over the past 12 months, the number of accounts rose by 4.238 million and the number of funds decreased by eight. The Average Maturity of Portfolios was 43 days, unchanged from May. Over the past 12 months, WAMs of Taxable money have increased by 13.
