Money funds' outflows are on the rise again, though 2020 overall still looks good.
| Nicolaas "Nico" Marais|
Wells Fargo Asset Management
This article draws from Morningstar Direct
data on money market mutual fund flows in the U.S. in August 2020.
Of the 10 money fund families tracked by the M* team, only three brought in net inflows last month. Wells Fargo
took the lead with an estimated $9.312 billion in net inflows, equivalent to about 4.3 percent of its money fund AUM, up from $4.992 billion and 2.4 percent in July. The other August money fund inflows winners were: BlackRock
, $6.046 billion and 1.4 percent (up from $422 million in net outflows, equivalent to 0.1 percent of AUM); and Federated Hermes
, $625 million and 0.2 percent (up from $3.593 billion in net outflows, equivalent to 1 percent of AUM.
Year-to-date, Goldman Sachs
tops the money fund inflows list as of August 31, thanks to an estimated $108.338 billion in net inflows. Other big YTD money fund inflows winners included: Fidelity
, $106.018 billion; and J.P. Morgan
, $93.17 billion.
Proportionately, Wells leads the money fund inflows pack YTD, thanks to estimated net inflows of 39.4 percent. Other big winners YTD included: Morgan Stanley
, 30.9 percent; and Goldman, 29.6 percent).
On the flip side, August was a rough month for Goldman's money fund business, which suffered an estimated $50.025 billion in net outflows, down from $12.713 billion in net July inflows. Other big August money fund outflows sufferers included: Charles Schwab
, $5.652 billion (down from $9.142 billion); and BNY Mellon's Dreyfus
, $4.002 billion (down from $585 million in net inflows).
The same three money fund firms — Goldman, Schwab, and Dreyfus — also led the August outflows pack proportionately, too, thanks to estimated net inflows equivalent to 13.7 percent, 2.9 percent, and 2 percent of their money fund AUM.
Only one money fund family, Schwab, suffered YTD money fund outflows as of the end August: $4.987 billion, equivalent to 2.6 percent of its money fund AUM.
Overall, those ten money fund families suffered an estimated $51.898 billion in net August money fund outflows, equivalent to about 1.44 percent of their combined AUM (up from $41.594 billion and 1.1 percent). That's versus $41.403 billion in net long-term fund inflows.
Yet YTD, as of the end of August, those money fund firms brought in an estimated $661.106 billion in net money fund inflows, equivalent to 18.32 percent of their combined money fund AUM. That's compared to $17.515 billion net long-term fund outflows YTD.
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