Money market fund assets reached a record high of $7.26 trillion for the week ending September 3, according to the Investment Company Institute (ICI). This marks a substantial increase of $52.37 billion compared to the previous week.
The growth was primarily driven by increases in both government and prime funds. Government funds saw a significant rise of $44.71 billion, while prime funds experienced an increase of $5.87 billion. Tax-exempt money market funds also contributed to the overall increase, growing by $1.79 billion.
The ICI categorizes funds as either retail or institutional based on the information provided in the fund prospectus. Retail funds are generally accessible to the public, including those offered through employer-sponsored retirement plans. Institutional funds, conversely, target institutional investors.
Retail money market fund assets increased by $18.90 billion to a total of $2.96 trillion. This included growth across government, prime, and tax-exempt fund categories.
Institutional money market funds also experienced significant growth, adding $33.47 billion to reach a total of $4.29 trillion. Similar to the retail sector, growth was observed across all fund categories within the institutional sector.
The ICI provides these weekly money market fund asset reports to the Federal Reserve. It’s important to note that the reported figures are subject to revision due to factors such as data adjustments and changes in the number of reporting funds. The ICI maintains a comprehensive history of weekly asset figures on its website, providing data for the past 20 weeks.
The ICI‘s data excludes assets from exchange-traded funds (ETFs) and funds primarily investing in other mutual funds. The definition of government money market funds includes investments in cash, U.S. Treasury securities (including repurchase agreements), and securities issued or guaranteed by the U.S. government or its agencies. The ICI‘s classification of retail and institutional funds is based on fund prospectus language and details are available on their website.
Related
