The Investment Company Institute released its latest "Money Market Fund Assets" report, as well as its monthly "Trends in Mutual Fund Investing" and "Month-End Portfolio Holdings of Taxable Money Funds" for March 2023 on Thursday. The monthly Trends shows money fund totals hitting record levels, while the Weekly update puts assets just shy of their record 2 weeks ago. The March jump was the third largest monthly increase ever and the largest in history if you exclude 2 coronavirus lockdown panic months in March and April 2020. Over the past 52 weeks, money fund assets have risen $753 billion, or 16.7%, with Retail MMFs rising by $498 billion (35.6%) and Inst MMFs rising by $206 billion (6.6%). ICI shows assets up by $528 billion, or 11.1%, year-to-date in 2023, with Institutional MMFs up $258 billion, or 8.4% and Retail MMFs up $221 billion, or 13.2%. (According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets hit a record on Wednesday, 4/26. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're over $400 billion lower than Crane's asset series.)
The weekly release says, "Total money market fund assets increased by $53.83 billion to $5.26 trillion for the week ended Wednesday, April 26, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $50.79 billion and prime funds increased by $5.71 billion. Tax-exempt money market funds decreased by $2.67 billion." ICI's stats show Institutional MMFs surging $48.9 billion and Retail MMFs rising $5.0 billion in the latest week. Total Government MMF assets, including Treasury funds, were $4.383 trillion (83.3% of all money funds), while Total Prime MMFs were $772.3 billion (14.7%). Tax Exempt MMFs totaled $107.5 billion (2.0%).
ICI explains, "Assets of retail money market funds increased by $4.98 billion to $1.90 trillion. Among retail funds, government money market fund assets increased by $3.24 billion to $1.29 trillion, prime money market fund assets increased by $4.05 billion to $514.11 billion, and tax-exempt fund assets decreased by $2.32 billion to $96.94 billion." Retail assets account for over a third of total assets, or 36.1%, and Government Retail assets make up 67.8% of all Retail MMFs.
They add, "Assets of institutional money market funds increased by $48.86 billion to $3.36 trillion. Among institutional funds, government money market fund assets increased by $47.55 billion to $3.10 trillion, prime money market fund assets increased by $1.66 billion to $258.21 billion, and tax-exempt fund assets decreased by $358 million to $10.54 billion." Institutional assets accounted for 63.9% of all MMF assets, with Government Institutional assets making up 92.0% of all Institutional MMF totals.
ICI's monthly "Trends" report shows that money fund assets increased $371.0 billion in March to a record $5.238 trillion. Bond fund assets also increased, jumping $62.0 billion to $4.629 trillion. But money fund assets, which surpassed bond fund assets in September 2022 for the first time since 2010, saw their lead over bond funds grow last month. MMFs have increased by $647.9 billion over the past 12 months. (The bond fund totals don't include bond ETFs, which total $1.346 trillion as of 3/31, according to ICI.)
Money funds' March asset increase follows gains of $60.0 billion in February, $31.5 billion in January, $105.3 billion in December, $63.4 billion in November, $36.8 billion in October and $4.2 billion in Sept. MMFs decreased $6.4 billion in August, but they increased $34.3 billion in July and $25.0 billion in June. MMFs decreased $8.0 billion in May and $71.0 billion in April. For the 12 months through March 31, 2023, money fund assets increased by $647.9 billion, or 14.1%. (For the month of April through 4/26, MMF assets have increased by $77.0 billion to a record $5.687 trillion according to MFI Daily. Crane Data's Prime asset totals have increased by $49.9 billion in April to $1.176 trillion.)
ICI's monthly release states, "The combined assets of the nation's mutual funds increased by $667.07 billion, or 2.9 percent, to $23.41 trillion in March, 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.... Bond funds had an outflow of $20.28 billion in March, compared with an inflow of $18.07 billion in February.... Money market funds had an inflow of $360.64 billion in March, compared with an inflow of $50.48 billion in February. In March funds offered primarily to institutions had an inflow of $292.04 billion and funds offered primarily to individuals had an inflow of $68.61 billion."
The Institute's latest statistics show that Taxable MMFs were higher while Tax Exempt MMFs were lower last month. Taxable MMFs increased by $372.1 billion in March to $5.126 trillion. Tax-Exempt MMFs decreased $1.2 billion to $112.3 billion. Taxable MMF assets increased year-over-year by $622.9 billion (13.8%), and Tax-Exempt funds rose by $25.0 billion over the past year (28.6%). Bond fund assets increased by $62.0 billion (after decreasing $70.5 billion in Feb.) to $4.629 trillion; they've decreased by $623.4 billion (-11.9%) over the past year.
Money funds represent 22.4% of all mutual fund assets (up 1.0% from the previous month), while bond funds account for 19.8%, according to ICI. The total number of money market funds was 281, unchanged from the prior month and down from 302 a year ago. Taxable money funds numbered 232 funds, and tax-exempt money funds numbered 49 funds.
ICI's "Month-End Portfolio Holdings" confirm a jump in Repo and a slight increase in Treasuries last month. Repurchase Agreements remained the largest composition segment in March, increasing $244.6 billion, or 8.9%, to $2.992 trillion, or 58.4% of holdings. Repo holdings have increased $802.5 billion, or 36.6%, over the past year. (See our April 13 News, "April MF Portfolio Holdings: Repo, Govt Agencies Jump to Record Levels.")
Treasury holdings in Taxable money funds increased last month after falling previously, they remained the second largest composition segment. Treasury holdings increased $44.1 billion, or 4.6%, to $996.6 billion, or 19.4% of holdings. Treasury securities have decreased by $639.4 billion, or -39.1%, over the past 12 months. U.S. Government Agency securities were the third largest segment; they increased $194.7 billion, or 36.2%, to $733.4 billion, or 14.3% of holdings. Agency holdings have increased by $376.1 billion, or 105.3%, over the past 12 months.
Certificates of Deposit (CDs) remained in fourth place; they decreased by $47.1 billion, or -18.6%, to $206.8 billion (4.0% of assets). CDs held by money funds rose by $62.8 billion, or 43.6%, over 12 months. Commercial Paper remained in fifth place, down $32.4 billion, or -16.3%, to $166.5 billion (3.2% of assets). CP increased $32.3 billion, or 24.0%, over one year. Other holdings increased to $15.9 billion (0.3% of assets), while Notes (including Corporate and Bank) increased to $7.5 billion (0.1% of assets).
The Number of Accounts Outstanding in ICI's series for taxable money funds decreased to 57.787 million, while the Number of Funds was unchanged at 232. Over the past 12 months, the number of accounts fell by 970.4 thousand and the number of funds decreased by 11. The Average Maturity of Portfolios was 16 days, up 2 from the record low in February. Over the past 12 months, WAMs of Taxable money have decreased by 13.
