The December issue of our flagship Money Fund Intelligence newsletter, which will be sent to subscribers Friday morning, features the articles: "Money Fund Assets Break $8.0 Trillion; Top 10 Stories of 2025," which discusses money market mutual funds reaching all-time highs;"J.P. Morgan's 2026 Outlook: Still Room for MM Growth," which quotes from JPM's expectations for next year; and "State Street I.M. Files for Stablecoin Reserves MMF," which highlights the latest money fund filing. We also will send out our MFI XLS spreadsheet Friday a.m., and we've updated our Money Fund Wisdom database with 11/30/25 data. Our December Money Fund Portfolio Holdings are scheduled to ship on Tuesday, Dec. 9, and our December Bond Fund Intelligence is scheduled to go out on Friday, Dec. 12. (Note: There's still time to register for our "basic training" event, Money Fund University, which takes place Dec. 18-19 in Pittsburgh!)
MFI's "$8 Trillion" story says, "Money market mutual fund assets broke the $8.0 trillion barrier for the first time ever on Monday, Dec. 1, according to our Money Fund Intelligence Daily. Assets increased by $105.3 billion in the week through Monday (12/1) to a record $8.022 trillion, and they've since risen to $8.046 trillion (through 12/3). Money fund assets increased by $129.1 billion in November, and they've increased by $848.3 billion (11.8%) year-to-date in 2025."
The story continues, "Assets reached the $7.0 trillion level for the first time in November 2024. (See our 11/14/24 News, 'Money Fund Assets Break Over $7.0 Trillion.') Money market mutual fund assets broke the $6.0 trillion barrier in August 2023. (See our 9/28/23 News, 'Sept. MFI: Assets Break $6.0 Trillion.') They rose above $5.0 trillion for the first time in April 2020 (see our 4/30/20 News, 'Money Fund Assets Break $5.0 Trillion,' but needed a couple more years to retake that level for good."
We write in the "2026 Outlook," story, "J.P. Morgan's new 'Short-Term Fixed Income 2026 Outlook' explains, '[W]ith rates still well above 3%, cash has continued to pour into MMFs. Inflows have persisted even as the Fed cuts rates, supported by interest reinvestment, an inverted yield curve, persistent market volatility, and potentially AI-related debt raises with proceeds not yet fully deployed. MMFs have remained a preferred haven for investors seeking stability, yield, and a place to park liquidity, pushing AUMs up $736bn (or 10%) to north of $7.8tn YTD.'"
It adds, "JPM tells us, 'In 2026, we expect the Fed to cut twice more, in January and April, before going on hold, for a terminal fed funds range of 3.25-3.50%. Although MMF yields will fall commensurately, MMF AUMs are expected to continue their upward trend, albeit at a slower pace than this year, and are likely to surpass $8tn. Stablecoin balances should also continue to grow, and while it’s hard to predict approximate growth next year, we think another $90-100bn increase (similar to this year) is a reasonable base case given recent momentum following passage of the GENIUS Act and related developments.'"
Our "State Street" article says, "State Street Investment Management is the fourth money fund manager to launch a Stablecoin Reserves money market fund, following BlackRock's Circle Treasury Reserves, and Stablecoin Reserves offerings from Goldman Sachs and BNY. A Form N-1A Registration Statement for the pending State Street Stablecoin Reserves Money Market Fund tells us, 'The investment objective of State Street Stablecoin Reserves Money Market Fund ... is to seek a high level of current income consistent with preserving principal and liquidity and the maintenance of a stable $1.00 per share net asset value. The Fund, which is advised by SSGA Funds Management, Inc., invests in assets in which payment stablecoin issuers are permitted to invest in under a U.S. law enacted in July 2025 designed to establish a framework of these issuers and any regulation adopted thereunder (the 'GENIUS Act').'"
It continues, "These eligible investments include U.S. Treasury bills, notes and bonds ... with a remaining maturity of 93 days or less <b:>`_… as well as repurchase agreements secured by U.S. Treasury Obligations. The Fund may invest in any other assets that qualify as eligible investments under the GENIUS Act (and any regulations thereunder) and that are permitted under Rule 2a-7 for a government money market fund. `The Fund does not invest in stablecoins. The Fund may hold a portion of its assets in cash pending investment, to satisfy redemption requests or to meet the Fund's other cash management needs."
MFI also includes the News brief, "Assets Soar to Record $7.65 Trillion." It says, "ICI's separate weekly report shows money fund assets jumping by $86.8 billion to $7.654 trillion after increasing by $45.5 billion last week. MMF assets are up by $883 billion, or 13.0%, over the past 52 weeks (through 12/3/25), with Institutional MMFs up $525 billion, or 12.9% and Retail MMFs up $358 billion, or 13.3%."
Another News brief, "HSBC Launches GBP, EUR MM ETFs," comments, "A press release, 'HSBC Asset Management Launches First ETF Share Classes for EU-Regulated Money Market Funds,' tells us, 'HSBC Asset Management ... announces the launch of new ETF share classes for its existing HSBC Sterling Liquidity and HSBC Euro Liquidity Funds <b:>`_…. The development marks the first time an asset manager in Europe has launched `ETF share classes within existing EU-regulated Money Market Funds (MMFs).'"
A third News brief, "Treasury Holdings Jump," says: "Our November Money Fund Portfolio Holdings, with data as of Oct. 31, 2025, show that holdings of Treasuries jumped while Repo exposure inched lower. Treasuries, the largest portfolio composition segment, increased by $180.5 billion to $3.397 trillion, or 43.8% of holdings. Repo, the second largest segment, decreased $6.0 billion in October to $2.757 trillion, or 35.6% of holdings. Agencies were the third largest segment, and CP remained fourth, ahead of CDs, Other/Time Deposits and VRDNs."
A sidebar, "PFII: LGIPs Nearly $1 Trillion," says, "The Public Funds Investment Institute posted a brief titled, '2024 LGIP Survey: LGIPs Hold Nearly $1 Trillion of Public Funds.' It explains, 'This year we expanded our survey to include local sponsored LGIPs. In total we identified 161 portfolios. They operate in all but seven states. The survey is the only comprehensive look at the LGIP industry which invests assets for thousands of public units across the country.'"
Our December MFI XLS, with November 30 data, shows total assets rose $129.3 billion to a record high $7.989 trillion, after increasing $141.5 billion in October, $100.4 billion in September, $129.9 billion in August, $69.0 billion in July, $10.1 billion in June and jumping $90.3 billion in May. MMFs decreased $26.6 billion in April and $4.6 billion in March. Assets increased $90.4 billion in February, $47.9 billion in January and $113.0 billion last December.
Our broad Crane Money Fund Average 7-Day Yield was down 11 bps at 3.68%, and our Crane 100 Money Fund Index (the 100 largest taxable funds) was down 11 bps at 3.78% in November. On a Gross Yield Basis (7-Day) (before expenses are taken out), the Crane MFA and the Crane 100 averaged 4.05% and 4.05%. Charged Expenses averaged 0.37% and 0.26% for the Crane MFA and the Crane 100. (We'll revise expenses once we upload the SEC's Form N-MFP data for 11/30/25 on Monday, 12/8.) The average WAM (weighted average maturity) for the Crane MFA was 38 days (down 2 days) and the Crane 100 WAM was down 1 day from the previous month at 40 days. (See our Crane Index or craneindexes.xlsx history file for more on our averages.)
