News Archives: July, 2026
Crane Data hosted its big Money Fund Symposium conference in Jersey City last week, where over 740 money market professionals discussed rates, tokenization, record asset levels and a number of other hot topics in cash. The opening session, "Keynote: Money Funds Stay Hot (& Cool) in '26," featured J.P. Morgan Asset Management's Global Head of Portfolio Management Chris Tufts. Responding to the record numbers in Jersey City, Tufts says, "I think it's a reflection of the run our industry has had over the past five or six years in particular.... I think it speaks to the asset gathering, the relevance of our product, and the fact that money funds have become the default liquidity tool for a wider array of investors over the past several years." (Note: Conference materials are available in our "Money Fund Symposium 2026 Download Center." Watch for more highlights and excerpts in coming days and in our upcoming issue of Money Fund Intelligence, and thanks again to those who supported MFS'26! See you in Philadelphia next year, June 23-25, 2027!)
He explains, "I think I'd also add that what's new, and pretty exciting for me and probably for most of the people in the room, is that we're not just talking about a safe corner of the market, cash management. We're really as an industry increasingly at the forefront of innovation and how cash and liquidity plug into all things digital. So really this is an innovation conversation this year. That's exciting, and I'm happy to be part of that."
Describing his team, Tufts comments, "We're about $1.6 trillion in assets under supervision. We serve institutional clients and retail clients.... Our job day in and day out, like everybody else in the room, is managing liquidity, principal stability, and delivering competitive returns for clients. It sounds simple, but everyone here knows it's anything but simple to make that happen day in and day out.... Even as we've become more digital as a business and more electronic, it's still a relationship business at the end of the day."
He continues, "The investment team is obviously front and center in the daily investment process, but, as everyone knows this is an operational and risk management-focused product. So when I talk about the team, I like to acknowledge that there is a lot more than just the investors and traders ... making this product happen every day. The money fund platform specifically is about $1.3 trillion of the $1.6 trillion under supervision. It's mostly 30 or so commingled funds and vehicles across six currencies, 90% USD. US dollars still dominate ... the platform even with significant growth in the non-USD currency funds over the past couple of years."
Asked about technology and money moving, Tufts responds, "Everything is very transparent and available in terms of data points on the funds and performance, which just removes friction in the way client cash can move around based on yield or other factors. And then I think after stress events like we saw with the regional bank crisis, I think users of money funds have ... re-evaluated what liquidity really means, what diversification means, and they've just become a lot more discerning in terms of how they think about their cash."
He states, "Obviously, yield is part of that.... Relative to bank deposits and direct market instruments, a phrase I've heard used internally is, 'cash is becoming less tolerant of complacency.' So I think that's a theme more than just chasing yield -- more active cash movement around the system and our industry is going to be with us for some time."
Tufts then comments, "With money funds, it's a game of inches in a lot of ways ... I think to the extent that you can use technology, whether it's AI or other tools to forecast liquidity more efficiently, get better execution in the market, identify issues faster, escalate them more quickly and efficiently, evaluate your counterparty usage in more real time. Those are all wins that help you deliver that extra inch or basis point over time."
He says, "We're using AI extensively. I don't think AI is replacing portfolio managers and investors, but I think ... portfolio managers who use AI well will probably replace portfolio managers that don't use AI or don't use it well. So this is something that we need to integrate into our processes and into the way we manage funds.... It's really efficient, in terms of looking at ... issue escalation, catching anomalies in our trading activity or data or allocations, and doing day-to-day analysis on what's changed."
When asked about tokenization, Tufts responds, "It seems like this year at your Symposium, we're talking more about innovation and creative projects like tokenization and digital initiatives, and it's refreshing to be spending more time on that. Obviously, the last number of years, really, since the GFC, we've been occupied with significant regulatory change and reforms. A lot of that certainly was necessary, and I think it's made us a lot more resilient as an industry through crisis events. But it certainly is refreshing to be able to focus on the next leg of evolution of our product."
He explains, "In terms of the products that we've launched, the tokenized funds that we've launched, they really look and feel from a portfolio management perspective just like any other short Treasury and Repo product that we run in the standard money fund format. So, it really hasn't changed my experience as an investor. The fact that they're tokenized ... is more of a client experience, product development, an operational exercise at this point. But I do think ... it's a natural fit in this discussion for our product. [We've] focused on liquidity, yield, stability, and putting that into a digital format is a natural next step, just adding more flexibility around settlement, portability of the funds, collateral, efficiencies, etc."
Tufts continues, "The challenging part is just making sure the governance and control ... moves at the same speed as the evolution and those other elements. For me as a portfolio manager, I think about the ... cash flow aspects and any sort of flow dynamics around the tokenized product, and how that might look and feel a bit different than traditional mutual fund wrappers.... It could speed up a lot of things. With that said, with peer-to-peer transferability in tokenized products, that actually could dampen cash flow volatility for the funds that we manage."
He says, "We've launched a private offshore tokenized fund that's run to the Genius Act investment guidelines. We also have a true Genius Act compliant 2a-7 tokenized fund that we launched more recently that's had some decent asset gathering success already.... We need to be present and ... not only educate ourselves on how these products work and how to make them more efficient and [to] make the governance as tight as we can. But also it's a process educating clients on these new arenas and formats."
Discussing online money fund portals, Tufts comments, "Morgan Money is a key initiative internally. We offer an open architecture platform that makes ... yield and liquidity options fully transparent [and] makes cash movement and the client experience as frictionless as possible. And we do it in a controlled way where you have very robust limits, audit trails, etc. Then to get back to the cash sorting or cash stacking discussion, the portals help clients segment their cash and their liquidity a bit more intentionally. And we do that in Morgan Money through cash optimization techniques and other functionality [within the portal]."
He tells the MFS, "So I think it's just making sure the cash lands in the right place and stays there until that cash is re-purposed or client liquidity needs change, and that's good for us. It ensures that the right liquidity lands in the right fund and it's good for clients in terms of optimizing their return on investment. So I think the portals have been a good development in terms of just helping cash find the right home over time."
Asked about the investor base, Tufts says, "For me personally, I think the client relationship aspect of my role or my team's role is one of the things that keeps it fresh and engaging. I love talking to the end investor. You're hearing about their businesses, their cash needs, how they think about liquidity, what they're worried about in terms of market backdrop and what's happening in the funds. That is, I think, critical to understand day in and day out. We also spend a lot of time analyzing and kind of stripping down the liability side of our portfolios."
He adds, "Obviously, managing assets is critical, but I think it's equally, if not more important, to understand the liability side of the funds -- investor concentrations, cash flow behaviors, and we have a whole committee process around that. We use technology and AI-style tools to help understand that data. We try to leverage best practices from the bank in terms of thinking about the way they manage their liability book in deposits. It's very fundamental to the process in terms of how we assemble the funds and think about liquidity management, especially in times of volatility, trying to understand that liability profile of the funds is critical, and especially the prime-style funds that own credit."
Finally, Tufts tells us, "Money funds are popular because they're built for the unexpected. We're built for volatility, and preservation of capital is central to what we do. I think there's a lot of unknowns out there at the moment from a market and geopolitical standpoint. So I think that's a tailwind for our product and just speaks to the ongoing relevance of what we all do. Secondly, I think the AI and digital revolution, it's worth celebrating. I think it's going to improve resiliency, transparency, and the way the product is utilized by a broader set of investors. I think we need to embrace that innovation and drive it as an industry."
The ICI published its monthly "Trends in Mutual Fund Investing - May 2026" and "Month-End Portfolio Holdings of Taxable Money Funds" on Monday. The latest "Trends" shows money fund totals increasing $157.2 billion, or 2.1%, in May to $7.825 trillion. MMFs increased by $828.7 billion, or 11.8%, over the past 12 months (through 5/31/26). Money funds' May asset increase follows a decrease of $100.5 billion in April, $16.9 billion in March, an increase of $59.9 billion in February, a decrease of $17.3 billion in January, an increase of $170.2 billion in December, $107.7 billion in November, $146.8 billion in October, $104.5 billion in September, $123.4 billion in August, $69.0 billion in July, and $29.3 billion in June. Assets increased $84.7 billion last May. Bond fund assets increased $66.9 billion to $5.688 trillion, and bond ETF assets increased $66.1 billion to $2.501 trillion in May 2026.
The monthly release states, "The combined assets of the nation's mutual funds increased by $905.50 billion, or 2.8 percent, to $33.15 trillion in May, 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 inflow of $42.79 billion in May, compared with an inflow of $12.56 billion in April.... Money market funds had an inflow of $143.66 billion in May, compared with an outflow of $118.17 billion in April. In May funds offered primarily to institutions had an inflow of $133.89 billion and funds offered primarily to individuals had an inflow of $9.77 billion."
The Institute's latest statistics show that Taxable MMFs and Tax Exempt MMFs were both higher from last month. Taxable MMFs increased by $155.9 billion in May to $7.678 trillion. Tax-Exempt MMFs increased $1.4 billion to $146.5 billion. Taxable MMF assets increased year-over-year by $823.1 billion (12.0%), and Tax-Exempt funds rose by $5.7 billion over the past year (4.0%). Bond fund assets increased by $66.9 billion (after increasing by $44.0 billion in April) to $5.688 trillion; they've increased by $550.8 billion (10.7%) over the past year.
Money funds represent 23.6% of all mutual fund assets (down 0.2% from the previous month), while bond funds account for 17.2%, according to ICI. The total number of money market funds was 269, up 3 from the prior month and up from 263 a year ago. Taxable money funds numbered 228 funds, and tax-exempt money funds numbered 41 funds.
ICI's "Portfolio Holdings" confirms a jump in Treasuries and a decrease in Repo last month. Treasury holdings remain the largest composition segment. In May, they increased $183.5 billion, or 6.2%, to $3.142 trillion, or 40.9% of holdings. Treasury securities have increased by $603.6 billion, or 23.8%, over the past 12 months. (See our June 10 News, "June MF Portfolio Holdings: Assets Jump; Treasuries Surge, Repo Up.")
Repurchase Agreements, the second largest composition segment, decreased $11.2 billion, or -0.4%, to $2.820 trillion, or 36.7% of holdings. Repo holdings have increased $107.8 billion, or 4.0%, over the past year. U.S. Government Agency securities were the third largest segment; they increased $5.4 billion, or 0.5%, to $1.091 trillion, or 14.2% of holdings. Agency holdings have increased by $183.4 billion, or 20.2%, over the past 12 months.
Certificates of Deposit (CDs) were in fourth place, up $7.1 billion, or 2.4%, to $297.8 billion (3.9% of assets). CDs decreased $17.4 billion, or -5.5%, over one year. Commercial Paper holdings were in fifth place; CP holdings increased by $12.1 billion, or 4.5%, to $280.3 billion (3.7% of assets). CP held by money funds fell by $19.9 billion, or -6.6%, over 12 months. Other holdings decreased to $24.7 billion (0.3% of assets), while Notes (including Corporate and Bank) increased to $40.6 billion (0.5% of assets).
The Number of Accounts Outstanding in ICI's series for taxable money funds increased to 88.676 million, while the Number of Funds was up 3 to 228. Over the past 12 months, the number of accounts rose by 9.353 million and the number of funds increased by 6. The Average Maturity of Portfolios was 43 days, unchanged from April. Over the past 12 months, WAMs of Taxable money are up 5 days.
In related news, Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of June 26) includes Holdings information from 75 money funds (up 17 from a week ago), or $4.784 trillion (up from $4.103 trillion) of the $8.326 trillion in total money fund assets (or 57.5%) tracked by Crane Data. (Note: Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our June 10 News, "June MF Portfolio Holdings: Assets Jump; Treasuries Surge, Repo Up.")
Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $2.079 trillion (up from $1.844 trillion a week ago), or 43.5%; Repurchase Agreements (Repo) totaling $1.759 trillion (up from $1.479 trillion a week ago), or 36.8%, and Government Agency securities totaling $519.3 billion (up from $444.9 billion a week ago), or 10.9%. Commercial Paper (CP) totaled $179.8 billion (up from $150.0 billion a week ago), or 3.8%. Certificates of Deposit (CDs) totaled $99.7 billion (up from $79.9 billion a week ago), or 2.1%. The Other category accounted for $87.1 billion or 1.8%, while VRDNs accounted for $59.8 billion or 1.3%.
The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $2.079 trillion, Fixed Income Clearing Corp with $646.2B, the Federal Home Loan Bank with $315.3B, JP Morgan with $188.0B, RBC with $126.4B, Federal Farm Credit Bank with $118.7B, Citi with $110.5B, BNP Paribas with $109.2B, Wells Fargo with $107.4B and Credit Agricole with $62.4B.
The Ten Largest Funds tracked in our latest Weekly include: JPMorgan 100% US Trs MM ($334.8B), JPMorgan US Govt MM ($330.5B), Fidelity Inv MM: Govt Port ($283.7B), Goldman Sachs FS Govt ($272.6B), Morgan Stanley Inst Liq Govt ($214.4B), State Street Inst US Govt ($205.6B), BlackRock Lq FedFund ($191.8B), BlackRock Lq Treas Tr ($189.6B), Federated Hermes Govt ObI ($188.5B) and Dreyfus Govt Cash Mgmt ($166.6B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
