Array ( [20250315] => 1 [20250316] => 3 [20250317] => 1 [20250318] => 0 [20250319] => 1 [20250320] => 2 [20250321] => 2 [20250322] => 0 [20250323] => 1 [20250324] => 1 [20250325] => 0 [20250326] => 2 [20250327] => 0 [20250328] => 2 [20250329] => 1 [20250330] => 1 [20250331] => 2 [20250401] => 0 [20250402] => 1 [20250403] => 1 [20250404] => 1 [20250405] => 1 [20250406] => 1 [20250407] => 1 [20250408] => 4 [20250409] => 1 [20250410] => 2 [20250411] => 0 [20250412] => 1 [20250413] => 2 [20250414] => 3 [20250415] => 1 [20250416] => 1 [20250417] => 2 [20250418] => 2 [20250419] => 1 [20250420] => 1 [20250421] => 4 [20250422] => 1 [20250423] => 0 [20250424] => 1 [20250425] => 0 [20250426] => 2 [20250427] => 2 [20250428] => 1 [20250429] => 2 [20250430] => 1 [20250501] => 1 [20250502] => 0 [20250503] => 0 [20250504] => 0 [20250505] => 1 [20250506] => 1 [20250507] => 0 [20250508] => 2 [20250509] => 2 [20250510] => 0 [20250511] => 0 [20250512] => 1 [20250513] => 2 [20250514] => 1 [20250515] => 1 [20250516] => 1 [20250517] => 0 [20250518] => 0 [20250519] => 0 [20250520] => 3 [20250521] => 4 [20250522] => 1 [20250523] => 1 [20250524] => 2 [20250525] => 1 [20250526] => 0 [20250527] => 1 [20250528] => 1 [20250529] => 0 [20250530] => 1 [20250531] => 0 [20250601] => 1 [20250602] => 1 [20250603] => 1 [20250604] => 1 [20250605] => 0 [20250606] => 2 [20250607] => 0 [20250608] => 1 [20250609] => 1 [20250610] => 0 [20250611] => 1 [20250612] => 0 )
Browse topics and content

Tech giants boost money market fund holdings to record levels

Feature-image

The five biggest companies in the S&P 500 index increased money fund investments by 47% this year while they sell off corporate bond holdings.

by Manpreet Singh

Published: November 6th 2019

The top five companies by market capitalization in the S&P 500 index – namely Apple, Amazon, Alphabet, Microsoft and Facebook – increased their holdings of money market funds to $45 billion this year, according to latest SEC filings by the companies. Individually, Apple holds most of them at $15 billion and Facebook comes second at $11 billion.

The increase partly offsets a $26 billion decrease in bond holdings at the five companies over the same period. At $455 billion, these investments in corporate bonds, government bonds and asset-backed securities are now 10% lower than their peak at the end of 2017, when US President Donald Trump signed a law lowering corporate tax rates.

The five tech giants posted a growth of nearly 47% in money market fund holdings from the previous financial year. Along with money market funds, deposits also grew at 22% from 2018. Corporate bonds, Government bonds and Mortgage-backed securities saw a dip in holdings by nearly 10%, 2% and 3% respectively.

Investment Holdings by Apple, Amazon, Microsoft, Alphabet and Facebook in 2019

Amazon, Alphabet, Microsoft and Facebook posted their collective holdings of cash equivalent and marketable securities at a record level since 2014. Apple Inc. saw a drop of 13% in its holdings from the previous financial year due to a decrease in marketable securities by $60 billon. Amazon’s marketable securities doubled from last year, while Apple added $23 billion to its cash holdings from the previous year, highest among top five companies. Since 2014, Facebook recorded 372% hike in its cash and marketable securities holdings.

Cash & Cash Equivalent and Marketable securities

The reduction in cash and bond holdings is even more dramatic at other S&P 500 companies. Not including the big five techs, the 25 biggest US companies as measured by cash holdings this April have reduced their total investments by more than $190 billion since the end of 2017. This 30% decline from the $650 billion end-2017 figure demonstrates the impact of the tax law change in encouraging a repatriation of cash and payouts to shareholders.