Worldwide mutual fund assets decreased 12.4% in the fourth quarter of 2008 to $18.97 trillion according to the Investment Company Institute's latest "Worldwide Mutual Fund Assets and Flows Fourth Quarter 2008." But the report says, "Assets of money market funds increased 6.8 percent to $5.8 trillion at the end of the fourth quarter." Money fund assets increased their share of total mutual fund assets worldwide to 30.5%, and U.S. money funds grew their share to 66% of all worldwide money fund assets.
ICI's latest quarterly says, "Net flows into money market funds jumped to $444 billion in the fourth quarter from $31 billion in the third quarter of 2008. For the year as a whole, money market funds had net inflows of $891 billion and long-term funds had net outflows of $610 billion in 2008." U.S. money funds accounted for the lion's share of inflows, up $368 billion in the quarter and $753.6 billion for the year, while Ireland experienced huge outflows, dropping $107.4 billion in Q4 and $230.9 billion in 2008 to $720.5 billion (12.4% of all assets). (Note that doesn't split out Ireland's assets by type, but that the vast majority are money funds.)
The survey, compiled on behalf of the International Investment Funds Association, continues, continues, "The Americas experienced net inflows of $388 billion into money market funds in the fourth quarter compared with net inflows of $34 billion in the third quarter. Asia/Pacific money market funds reported net inflows of $58 billion in the fourth quarter, up from net inflows of $18 billion in the third quarter. European money market funds registered net outflows of $3 billion in the fourth quarter, after reporting net inflows of $12 billion in the third quarter."
Crane Data's analysis of the full tables, available here, show that China posted the second largest money fund inflows after the U.S., $33.2 billion, to $57.0 billion, followed by Korea (up $18.0 billion to $71.9 billion) and France (up $10.9 billion to $678.6 billion), the third-largest market for money funds. After Ireland, Australia (down $22.6 billion to $176.6 billion), Italy (down $10.9 billion to $79.5 billion), and Mexico (down $10.0 billion to $35.3 billion) showed the largest asset declines in Q42008.
