Money market funds' inflows fell 23 percent last year, but they dominated industry inflows last month.
| Laurence D. "Larry" Fink|
This article draws from Morningstar Direct
data on money market mutual fund flows in the U.S. in December 2021.
Money funds had $3.841 trillion in AUM as of December 31, 2021, accounting for 12.04 percent of all mutual fund and ETF AUM. That compares with $3.735 trillion and 12.04 percent on November 30, 2021
, and with $3.461 trillion and 12.67 percent on December 31, 2021
Seven of the ten money fund firms tracked by the M* team brought in net inflows in 2021. Nine brought in inflows in Q4 2021 and in December 2021.
took the lead last year, thanks to an estimated $123.036 billion in net money fund inflows in 2021, up year-over-year from $81.792 billion in 2020. Other big 2021 money fund inflows winners included: Morgan Stanley
, $73.316 billion (down Y/Y from $86.951 billion); and Goldman Sachs
, $66.675 billion (up Y/Y from $57.828 billion).
Last quarter, Fidelity
led the pack, thanks to an estimated $34.644 billion in net Q4 2021 money fund inflows. Other big Q4 inflows winners included: Northern Trust
, $33.501 billion; and BlackRock, $31.849 billion.
BlackRock also took the lead last month, thanks to an estimated $30.439 billion in net money fund inflows. Other big December 2021 inflows winners included: Fidelity, $22.544 billion; and Northern, $22.414 billion.
On the flip side, Vanguard
led the outflows pack last year, thanks to an estimated $32.729 billion in net 2021 money fund flows, down Y/Y from $44.62 billion in 2020 inflows. Other big 2021 outflows sufferers included: Allspring Global Investments
, $9.465 billion (down Y/Y from $66.976 billion in net inflows); and Fidelity, $3.694 billion (down Y/Y from $94.151 billion in net inflows).
Allspring (which spun out of a big bank, Wells Fargo, last fall) is the only money fund firm that suffered net outflows in Q4 2021, and the only one that did so in December 2021, too. (Those outflows reached $7.298 billion and $5.723 billion, respectively.)
As a group, money funds brought in an estimated $396.16 billion in net 2021 inflows, equivalent to about 10.31 percent of their combined AUM and accounting for 24.62 percent of overall industry inflows. That compares with $513.207 billion, 11.45 percent of AUM, and 69.97 percent of industry inflows in 2020.
In Q4 2021 alone, money funds brought in an estimated $175.986 billion in net inflows, equivalent to 4.58 percent of their combined AUM and accounting for 41.3 percent of overall industry inflows.
And in December 2021 alone, money funds brought in an estimated $106.253 billion in net inflows, equivalent to 2.77 percent of their combined AUM and accounting for 54.8 percent of overall industry inflows. That's up from $68.428 billion, 1.83 percent of AUM, and 45.81 percent of industry inflows in November 2021, and up from $23.272 billion in net December 2020 outflows.
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