SEC Reports: Money Market Fund Assets Reach Record $7.47 Trillion in May, with Decreased Yields

The latest monthly summary of “Money Market Fund Statistics” published by the Securities and Exchange Commission reveals some interesting insights into the state of the market. Total assets of money market funds decreased by $72.09 billion in the latest month, reflecting a 0.6% decline compared to the previous month. This decrease is attributed to outflows of $91.65 billion in government institutional funds, partially offset by inflows of $15.76 billion in government retail funds.

The report also highlights that the total number of funds decreased by 16 to 381 in the latest month. Of these, prime institutional funds decreased by 15, while government institutional funds remained constant. On the retail side, government funds increased by 5, while prime funds decreased by 6. These changes indicate a shifting landscape within the money market fund industry.

Additionally, the report provides information on the liquidity levels of money market funds. The percentage of assets invested in daily liquid assets for prime funds increased from 31.1% to 33.7%, while weekly liquid assets decreased from 48.1% to 46.8%. Government funds also saw an increase in daily liquid assets from 57.2% to 59.1%, with weekly liquid assets remaining relatively stable at 79.4%.

Furthermore, the report discusses the average maturity of securities held by money market funds. The weighted average maturity of prime funds decreased from 34 days to 33 days, reflecting a slightly shorter duration of securities held. Government funds also experienced a decrease in weighted average maturity from 34 days to 33 days. These changes indicate a trend towards shorter-duration securities in money market fund portfolios.

Overall, the “Money Market Fund Statistics” summary provides valuable insights into the trends and developments within the money market fund industry. The decrease in total assets, changes in the number of funds, and shifts in liquidity and maturity levels all indicate a dynamic and evolving market environment. By staying informed about these data points, investors and industry professionals can make more educated decisions about their investments and strategies within the money market fund space.