Crane Data's latest Money Fund Intelligence International shows that assets in European or "offshore" money market mutual funds moved higher over the past 30 days to a record $1.342 trillion, while yields inched down. Assets for EUR, GBP and USD MMFs rose over the past month. Like U.S. money fund assets, European MMFs have repeatedly hit record highs in 2023 and 2024. These U.S.-style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, increased by $38.5 billion over the 30 days through 9/13. The totals are up $109.8 billion (9.2%) year-to-date for 2024, they were up $166.9 billion (16.2%) for the year 2023. (Note that currency moves in the U.S. dollar cause Euro and Sterling totals to shift when they're translated back into totals in U.S. dollars. See our latest MFI International for more on the "offshore" money fund marketplace. These funds are only available to qualified, non-U.S. investors and are almost entirely institutional.) (Note too: We look forward to seeing some of you later this week at our European Money Fund Symposium, which will take place Sept. 19-20, 2024 in London, England!)
Offshore US Dollar money funds increased $29.8 billion over the last 30 days and are up $67.7 billion YTD to $717.2 billion; they increased $100.0 billion in 2023. Euro funds increased E2.8 billion over the past month. YTD, they're up E42.2 billion to E277.1 billion, for 2023, they increased by E54.5 billion. GBP money funds increased L4.5 billion over 30 days, and they're up L23.4 billion YTD at L258.8B, for 2023, they fell L28.1 billion. U.S. Dollar (USD) money funds (214) account for over half (53.4%) of the "European" money fund total, while Euro (EUR) money funds (123) make up 22.2% and Pound Sterling (GBP) funds (143) total 24.3%. We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers Monday), below.
Offshore USD MMFs yield 5.18 (7-Day) on average (as of 9/13/24), down four basis points from a month earlier. Yields averaged 4.20% on 12/30/22, 0.03% on 12/31/21, 0.05% on 12/31/20, 1.59% on 12/31/19 and 2.29% on 12/31/18. EUR MMFs, which left negative yield territory in the second half of 2022, yield 3.59% on average, down 4 bps from a month ago and up from 1.48% on 12/30/22, -0.80% on 12/31/21, -0.71% at year-end 2020, -0.59% at year-end 2019 and -0.49% at year-end 2018. Meanwhile, GBP MMFs broke above the 5.0% barrier 13 months ago, they broke back below 5.0% 2 months ago; they now yield 4.94%, down 4 bps from a month ago, but up from 3.17% on 12/30/22. Sterling yields were 0.01% on 12/31/21, 0.00% on 12/31/20, 0.64% on 12/31/19 and 0.64% on 12/31/18.
Crane's September MFI International Portfolio Holdings, with data as of 8/31/24, show that European-domiciled US Dollar MMFs, on average, consist of 26% in Commercial Paper (CP), 15% in Certificates of Deposit (CDs), 24% in Repo, 22% in Treasury securities, 12% in Other securities (primarily Time Deposits) and 1% in Government Agency securities. USD funds have on average 46.7% of their portfolios maturing Overnight, 4.0% maturing in 2-7 Days, 9.8% maturing in 8-30 Days, 10.1% maturing in 31-60 Days, 9.1% maturing in 61-90 Days, 13.8% maturing in 91-180 Days and 6.5% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (38.8%), France (12.1%), Japan (9.5%), Canada (9.0%), the U.K. (4.2%), the Netherlands (4.0%), Australia (4.0%), Sweden (3.7%), Finland (2.5%) and Germany (2.2%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $162.7 billion (22.4% of total assets), Fixed Income Clearing Corp with $37.1B (5.1%), Credit Agricole with $23.7B (3.3%), JP Morgan with $18.8B (2.6%), BNP Paribas with $18.7B (2.6%), Nordea Bank with $17.8B (2.4%), Mizuho Corporate Bank with $16.6B (2.3%), Barclays with $15.5B (2.1%), Sumitomo Mitsui Banking Corp with $15.4B (2.1%) and Bank of America with $15.0B (2.1%).
Euro MMFs tracked by Crane Data contain, on average 44% in CP, 23% in CDs, 14% in Other (primarily Time Deposits), 17% in Repo, 2% in Treasuries and 0% in Agency securities. EUR funds have on average 32.6% of their portfolios maturing Overnight, 10.6% maturing in 2-7 Days, 17.5% maturing in 8-30 Days, 13.1% maturing in 31-60 Days, 9.7% maturing in 61-90 Days, 10.3% maturing in 91-180 Days and 6.3% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (29.5%), Japan (12.5%), the U.S. (8.8%), Germany (7.6%), Canada (7.3%), Austria (4.7%), the Netherlands (4.7%), the U.K. (4.5%), Spain (3.6%) and Australia (3.5%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E15.2B (6.3%), BNP Paribas with E10.9B (4.5%), JP Morgan with E10.2B (4.2%), Societe Generale with E9.0B (3.7%), Republic of France with E8.7B (3.6%), Credit Mutuel with E7.6B (3.1%), DZ Bank AG with E7.2B (3.0%), Mitsubishi UFJ Financial Group Inc with E7.0B (2.9%), Sumitomo Mitsui Banking Corp with E6.8B (2.8%) and Toronto-Dominion Bank with E6.8B (2.8%).
The GBP funds tracked by MFI International contain, on average (as of 8/31/24): 39% in CDs, 18% in CP, 21% in Other (Time Deposits), 18% in Repo, 4% in Treasury and 0% in Agency. Sterling funds have on average 34.7% of their portfolios maturing Overnight, 8.5% maturing in 2-7 Days, 9.6% maturing in 8-30 Days, 10.8% maturing in 31-60 Days, 13.3% maturing in 61-90 Days, 16.5% maturing in 91-180 Days and 6.5% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (16.5%), Japan (14.3%), the U.K. (13.2%), Canada (12.6%), Australia (9.8%), the U.S. (9.1%), the Netherlands (4.3%), Singapore (3.4%), Finland (2.9%), and Abu Dhabi (2.4%).
The 10 Largest Issuers to "offshore" GBP money funds include: UK Treasury with L16.4B (6.9%), BNP Paribas with L11.3B (4.7%), Sumitomo Mitsui Trust Bank with L9.4B (3.9%), Toronto-Dominion Bank with L9.1B (3.8%), RBC with L9.0B (3.8%), Mizuho Corporate Bank Ltd with L8.5B (3.6%), JP Morgan with L8.4B (3.5%), National Australia Bank Ltd with L7.6B (3.2%), BPCE with L7.3B (3.1%) and Commonwealth Bank of Australia with L7.0B (2.9%).
