Crane Data's latest Money Fund Intelligence International shows that assets in European or "offshore" money market mutual funds moved higher again over the past 30 days to a record $1.363 trillion, while yields inched down. Assets for EUR and GBP MMFs rose over the past month while USD MMFs fell. 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 $17.1 billion over the 30 days through 10/11. The totals are up $166.4 billion (13.9%) 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 next week at the AFP conference, which will take place Oct. 20-23, 2024 in Nashville!)
Offshore US Dollar money funds decreased $10.7 billion over the last 30 days and are up $57.6 billion YTD to $707.2 billion; they increased $100.0 billion in 2023. Euro funds increased E3.3 billion over the past month. YTD, they're up E47.1 billion to E282.1 billion, for 2023, they increased by E54.5 billion. GBP money funds increased L13 million over 30 days, and they're up L24.5 billion YTD at L259.9B, for 2023, they fell L28.1 billion. U.S. Dollar (USD) money funds (218) account for over half (51.9%) of the "European" money fund total, while Euro (EUR) money funds (130) make up 22.8% and Pound Sterling (GBP) funds (146) total 25.3%. We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers Tuesday), below.
Offshore USD MMFs yield 4.82 (7-Day) on average (as of 10/11/24), down 36 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 3.39% on average, down 20 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 14 months ago, they broke back below 5.0% 3 months ago; they now yield 4.90%, 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 October MFI International Portfolio Holdings, with data as of 9/30/24, show that European-domiciled US Dollar MMFs, on average, consist of 27% in Commercial Paper (CP), 15% in Certificates of Deposit (CDs), 23% in Repo, 23% in Treasury securities, 11% in Other securities (primarily Time Deposits) and 1% in Government Agency securities. USD funds have on average 44.7% of their portfolios maturing Overnight, 5.7% maturing in 2-7 Days, 8.7% maturing in 8-30 Days, 11.5% maturing in 31-60 Days, 8.1% maturing in 61-90 Days, 16.2% maturing in 91-180 Days and 5.1% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (38.3%), France (11.9%), Canada (9.6%), Japan (9.1%), the Netherlands (4.6%), Australia (4.5%), the U.K. (3.6%), Sweden (3.2%), Finland (3.0%) and Germany (2.9%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $171.1 billion (23.1% of total assets), Fixed Income Clearing Corp with $40.1B (5.4%), Nordea Bank with $21.4B (2.9%), BNP Paribas with $20.6B (2.8%), Toronto-Dominion Bank with $17.4B (2.3%), Credit Agricole with $17.4B (2.3%), Mitsubishi UFJ Financial Group Inc with $16.4B (2.2%), Mizuho Corporate Bank with $15.0B (2.0%), Bank of America with $14.6B (2.0%) and RBC with $14.3B (1.9%).
Euro MMFs tracked by Crane Data contain, on average 43% in CP, 24% in CDs, 14% in Other (primarily Time Deposits), 17% in Repo, 2% in Treasuries and 0% in Agency securities. EUR funds have on average 34.0% of their portfolios maturing Overnight, 11.2% maturing in 2-7 Days, 15.5% maturing in 8-30 Days, 12.4% maturing in 31-60 Days, 5.8% maturing in 61-90 Days, 15.8% maturing in 91-180 Days and 5.2% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (28.4%), Japan (12.6%), the U.S. (8.4%), Canada (7.4%), the Netherlands (7.0%), Germany (6.7%), the U.K. (5.0%), Austria (4.3%), Australia (3.8%) and Sweden (3.0%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E14.9B (6.1%), BNP Paribas with E11.5B (4.7%), JP Morgan with E9.4B (3.9%), Republic of France with E8.5B (3.5%), Societe Generale with E8.2B (3.4%), Mitsubishi UFJ Financial Group Inc with E7.6B (3.1%), Mizuho Corporate Bank Ltd with E7.3B (3.0%), Toronto-Dominion Bank with E6.8B (2.8%), Sumitomo Mitsui Banking Corp with E6.4B (2.6%) and Credit Mutuel with E6.3B (2.6%).
The GBP funds tracked by MFI International contain, on average (as of 9/30/24): 37% in CDs, 19% in CP, 21% in Other (Time Deposits), 19% in Repo, 3% in Treasury and 1% in Agency. Sterling funds have on average 37.2% of their portfolios maturing Overnight, 7.4% maturing in 2-7 Days, 9.6% maturing in 8-30 Days, 13.8% maturing in 31-60 Days, 7.0% maturing in 61-90 Days, 20.1% maturing in 91-180 Days and 4.9% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (17.7%), Japan (13.4%), the U.K. (12.5%), Canada (12.3%), Australia (9.9%), the U.S. (8.9%), the Netherlands (4.7%), Singapore (3.7%), Finland (3.0%), and Spain (2.7%).
The 10 Largest Issuers to "offshore" GBP money funds include: BNP Paribas with L10.4B (5.2%), UK Treasury with L9.4B (4.7%), Toronto-Dominion Bank with L7.8B (3.9%), JP Morgan with L7.4B (3.7%), Mizuho Corporate Bank Ltd with L7.3B (3.7%), Commonwealth Bank of Australia with L6.8B (3.4%), Sumitomo Mitsui Trust Bank with L6.7B (3.4%), National Australia Bank Ltd with L6.1B (3.1%), RBC with L6.1B (3.0%) and Mitsubishi UFJ Financial Group Inc with L6.1B (3.0%).
