The Investment Company Institute published its latest weekly "Money Market Fund Assets" report and its latest monthly "Trends in Mutual Fund Investing" and "Month-End Portfolio Holdings of Taxable Money Funds" for November 2023 on Thursday. The former shows MMF assets `rising $16.4 billion to $5.886 trillion in the past week. They fell the two previous weeks, and remain just $12 billion below their record level of $5.898 trillion level (set 12/6/23). Assets are up by $1.151 trillion, or 24.3%, year-to-date in 2023, with Institutional MMFs up $539 billion, or 17.6% and Retail MMFs up $612 billion, or 36.5%. Over the past 52 weeks (and for calendar 2023), money funds have risen a massive $1.151 trillion, or 24.3%, with Retail MMFs rising by $612 billion (36.5%) and Inst MMFs rising by $539 billion (17.6%).
The weekly release says, "Total money market fund assets increased by $16.35 billion to $5.89 trillion for the week ended Wednesday, December 27, the Investment Company Institute reported. Among taxable money market funds, government funds increased by $18.87 billion and prime funds decreased by $3.82 billion. Tax-exempt money market funds increased by $1.30 billion." ICI's stats show Institutional MMFs rising $3.4 billion and Retail MMFs rising $13.0 billion in the latest week. Total Government MMF assets, including Treasury funds, were $4.813 trillion (81.8% of all money funds), while Total Prime MMFs were $951.4 billion (16.2%). Tax Exempt MMFs totaled $122.1 billion (2.1%).
ICI explains, "Assets of retail money market funds increased by $13.00 billion to $2.29 trillion. Among retail funds, government money market fund assets increased by $8.88 billion to $1.49 trillion, prime money market fund assets increased by $3.20 billion to $686.48 billion, and tax-exempt fund assets increased by $920 million to $111.12 billion." Retail assets account for over a third of total assets, or 38.9%, and Government Retail assets make up 65.2% of all Retail MMFs.
They add, "Assets of institutional money market funds increased by $3.35 billion to $3.60 trillion. Among institutional funds, government money market fund assets increased by $9.99 billion to $3.32 trillion, prime money market fund assets decreased by $7.02 billion to $264.95 billion, and tax-exempt fund assets increased by $380 million to $10.95 billion." Institutional assets accounted for 61.1 % of all MMF assets, with Government Institutional assets making up 92.3% of all Institutional MMF totals.
According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets rose $3.5 billion in the first 27 days of December to $6.271 trillion, slightly off their record $6.321 trillion level set on 12/12/23. Assets jumped $226.4 billion in November after falling by $31.9 billion in October and rising by $93.9 billion in September, $98.3 billion in August and $34.7 billion in July. 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.
ICI's monthly Trends shows money fund totals jumping $213.9 billion in November to $5.881 trillion (after a decrease in October and increases in September, August, July, June, May and April). Prior to this, the March 2023 jump (a $371.0 billion increase) 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. Bond fund assets surged $170.5 billion to $4.609 trillion.
MMFs have increased by $1.210 trillion, or 25.9%, over the past 12 months (according to ICI's Trends through 11/30). Money funds' November asset increase follows a decrease of $13.6 billion in October and gains of $74.1 billion in September, $123.9 billion in August $31.4 billion in July, $30.6 billion in June, $172.7 billion in May, $8.4 billion in April, $371.0 billion in March, $60.0 billion in February, $31.5 billion in January and $105.3 billion in December. Money fund assets surpassed bond fund assets in September 2022 for the first time since 2010 and they continued to hold a sizeable lead last month. (The bond fund totals don't include bond ETFs, which total $1.446 trillion as of 11/30, according to ICI.)
ICI's monthly release states, "The combined assets of the nation's mutual funds increased by $1.46 trillion, or 6.3 percent, to $24.70 trillion in November, 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 $12.79 billion in November, compared with an outflow of $34.44 billion in October.... Money market funds had an inflow of $196.66 billion in November, compared with an outflow of $28.54 billion in October. In November funds offered primarily to institutions had an inflow of $159.38 billion and funds offered primarily to individuals had an inflow of $37.28 billion."
The Institute's latest statistics show that Taxable MMFs were higher while Tax Exempt MMFs were lower last month. Taxable MMFs increased by $214.4 billion in November to $5.758 trillion. Tax-Exempt MMFs decreased $0.6 billion to $122.5 billion. Taxable MMF assets increased year-over-year by $1.195 trillion (26.2%), and Tax-Exempt funds rose by $14.1 billion over the past year (13.0%). Bond fund assets increased by $170.5 billion (after decreasing $90.4 billion in October) to $4.609 trillion; they've increased by $43.2 billion (0.9%) over the past year.
Money funds represent 23.8% of all mutual fund assets (down 0.6% from the previous month), while bond funds account for 18.7%, according to ICI. The total number of money market funds was 275, down 1 from the prior month and down from 292 a year ago. Taxable money funds numbered 229 funds, and tax-exempt money funds numbered 46 funds.
ICI's "Month-End Portfolio Holdings" confirm a drop in Repo and a jump in Treasuries last month. Repurchase Agreements remained the largest composition segment in November but decreased $37.1 billion, or -1.5%, to $2.432 trillion, or 42.2% of holdings. Repo holdings have decreased $56.6 billion, or -2.3%, over the past year. (See our Dec. 12 News, "Dec. Portfolio Holdings: Treasuries Jump Again, Repo Slides; Assets Up.")
Treasury holdings in Taxable money funds increased last month; they remain the second largest composition segment. Treasury holdings increased $234.2 billion, or 12.6%, to $2.087 trillion, or 36.2% of holdings. Treasury securities have increased by $973.9 billion, or 87.5%, over the past 12 months. U.S. Government Agency securities were the third largest segment; they increased $256 million, or 0.0%, to $661.5 billion, or 11.5% of holdings. Agency holdings have increased by $142.8 billion, or 27.5%, over the past 12 months.
Certificates of Deposit (CDs) remained in fourth place; they increased by $965 million, or 0.3%, to $316.3 billion (5.5% of assets). CDs held by money funds rose by $98.0 billion, or 44.9%, over 12 months. Commercial Paper remained in fifth place, up $9.8 billion, or 4.3%, to $238.8 billion (4.1% of assets). CP increased $62.0 billion, or 35.1%, over one year. Other holdings increased to $19.2 billion (0.3% of assets), while Notes (including Corporate and Bank) decreased to $6.4 billion (0.1% of assets).
The Number of Accounts Outstanding in ICI's series for taxable money funds increased to 63.133 million, while the Number of Funds was down 1 at 229. Over the past 12 months, the number of accounts rose by 3.417 million and the number of funds decreased by 8. The Average Maturity of Portfolios was 34 days, up 4 from October. Over the past 12 months, WAMs of Taxable money have increased by 19.
