The Investment Company Institute released its "Worldwide Regulated Open-End Fund Assets and Flows Third Quarter 2016" earlier this week. The latest data collection on mutual funds in other countries (as well as the U.S.) shows that money fund assets globally rose by $56.3 billion, or 1.1% in Q3'16, led by increases in Luxembourg, China, France and India. MMF assets worldwide have risen by $220.4 billion, or 4.6%, the past 12 months. China, Brazil, Luxembourg, France, Ireland and India showed the biggest asset increases in the past 12 months through Sept. 30, 2016. The U.S., Ireland, Brazil and Japan showed the largest declines in Q3, while Japan, Mexico and Sweden posted the largest declines over the past year. We review the latest `Worldwide MMF totals, and we also discuss Crane Data's latest MFI International and MFII Portfolio Holdings statistics, below. (See today's "Link of the Day for the latest on European money fund reforms too.)
ICI's release says, "Worldwide regulated open-end fund assets increased 4.0 percent to $40.85 trillion at the end of the third quarter of 2016, excluding funds of funds.... The Investment Company Institute compiles worldwide open-end fund statistics on behalf of the International Investment Funds Association, the organization of national fund associations.... Bond fund assets increased by 4.6 percent to $9.21 trillion in the third quarter. Balanced/mixed fund assets increased by 3.1 percent to $5.46 trillion in the third quarter, while money market fund assets increased by 1.2 percent globally to $5.05 trillion."
It explains, "At the end of the third quarter of 2016, 42 percent of worldwide regulated open-end fund assets were held in equity funds. The asset share of bond funds was 23 percent and the asset share of balanced/mixed funds was 13 percent. Money market fund assets represented 12 percent of the worldwide total. By region, 51 percent of worldwide assets were in the Americas in the third quarter of 2016, 36 percent were in Europe, and 13 percent were in Africa and the Asia-Pacific regions."
The release adds, "Globally, bond funds posted an inflow of $281 billion in the third quarter of 2016, after recording an inflow of $147 billion in the second quarter. Inflows from balanced/mixed funds worldwide totaled $47 billion in the third quarter of 2016, compared with $45 billion of inflows in the second quarter of 2016. Money market funds worldwide experienced an inflow of $49 billion in the third quarter of 2016 after registering an outflow of $13 billion in the second quarter of 2016."
According to Crane Data's analysis of ICI's "Worldwide" fund data, the U.S. maintained its position as the largest money fund market in Q3'16 with $2.672 trillion (or 52.9% of all global MMF assets). U.S. MMF assets decreased by $20.2 billion in Q3'16 and increased by $3.7B in the 12 months through Sept. 30, 2016. China remained in second place among countries overall, as assets rebounded strongly following their first declines since late 2010 in Q2. China saw assets jump $32.5 billion (up 5.1%) in Q3 to $664.4 billion (13.2% of worldwide assets). Over the last 12 months through Sept. 30, 2016, Chinese MMF assets have grown an astounding $87.1 billion, or 15.1%.
Ireland remained third among these country rankings, ending Q3 with $495.4 billion (9.8% of worldwide assets). Dublin-based MMFs were down $14.9B for the quarter, or 2.9%, but up $20.0B, or 4.2%, over the last 12 months. France remained in fourth place with $376.9 billion (7.5% of worldwide assets). Assets here jumped $16.9 billion, or 4.7%, in Q3, and were up $27.1 billion, or 7.8%, over one year. Luxembourg was in fifth place with $354.6B, or 7.0% of the total, up $41.6 billion in Q3 (13.3%) and up $30.7B (9.5%) over 12 months.
Korea, the 6th ranked country, saw MMF assets jump $5.4 billion, or 5.8%, to $98.7 billion (2.0% of total) in Q3 and rise $12.6 billion (14.6%) for the year. Brazil remained in 7th place, decreasing $5.6 billion, or 7.9%, to $65.2 billion (1.3% of total assets) in Q3. It increased $31.7 billion (94.4%) over the previous 12 months. (ICI's data no longer includes money fund figures for Australia, but they would rank as the sixth largest market at $322 billion, their level of two years ago, if they were still included. Australia's MMF assets were shifted into the "Other" category several quarters ago.)
ICI's statistics show Mexico in 8th place with $51.9B, or 1.0% of total, down $3.5B (6.4%) in Q3 and down $4.5B (8.0%) for the year. India was in 9th place, increasing $10.2 billion, or 28.2%, to $46.3 billion (0.9% of total assets) in Q3 and increasing $19.1 billion (70.3%) over the previous 12 months. Taiwan was in 10th place with $27.4 billion, or 0.5% of worldwide assets.
South Africa ($21.4B, up $2.7B and up $2.6B over the quarter and year, respectively), Switzerland ($20.0B, down $253M and up $778M), Chile ($19.6B, up $3.5B and up $5.7B), Sweden ($19.1B, down $2.4B and down $3.1B), and Canada ($18.4B, down $158M and down $480M) ranked 11th through 15th, respectively. Belgium, Norway, Spain, Poland and Germany round out the 20 largest countries with money market mutual funds. South Africa moved ahead of Switzerland and Sweden in the latest rankings.
Note that Ireland and Luxembourg's totals are primarily "offshore" money funds marketed to global multinationals, while most of the other countries in the survey have primarily domestic money fund offerings. Contact us if you'd like our latest "Largest Money Market Funds Markets Worldwide" spreadsheet, based on ICI's data, or if you'd like to see our MFI International product.
Crane Data's Money Fund Intelligence International shows assets in "offshore" money market mutual funds, U.S.-style funds domiciled in Dublin or Luxemburg and denominated in USD, Euro and GBP (sterling), up $20 billion year-to-date to $719 billion as of 12/19/16. U.S. Dollar (USD) funds (156) account for over half ($389.1 billion, or 54.1%) of the total, while Euro (EUR) money funds (97) total E90.7 billion and Pound Sterling (GBP) funds (107) total L188.1. USD funds are down $3 billion, YTD, while Euro funds are up E15 billion and GBP funds are up L38B. USD MMFs yield 0.53% (7-Day) on average (12/19/16), up 37 basis points from 12/31/15. EUR MMFs yield -0.47% on average, down 28 basis points YTD, while GBP MMFs yield 0.21%, down 16 bps YTD.
Crane's latest Money Fund Intelligence International Portfolio Holdings data (11/30/16) shows that European-domiciled US Dollar MMFs, on average, consist of 25% in Treasury securities, 21% in Commercial Paper (CP), 20% in Certificates of Deposit (CDs), 17% in Other securities (primarily Time Deposits), 14% in Repurchase Agreements (Repo), and 3% in Government Agency securities. USD funds have on average 29.0% of their portfolios maturing Overnight, 11.4% maturing in 2-7 Days, 18.3% maturing in 8-30 Days, 12.4% maturing in 31-60 Days, 12.7% maturing in 61-90 Days, 12.2% maturing in 91-180 Days, and 4.0% maturing beyond 181 Days. USD holdings are affiliated with the following countries: US (36.1%), France (14.5%), Japan (9.5%), Canada (9.0%), Sweden (5.1%), Germany (5.0%), Australia (4.2%), the Netherlands (4.0%), Great Britain (2.9%), Singapore (2.2%) and China (1.5%).
The 20 Largest Issuers to "offshore" USD money funds include: the US Treasury with $111.7 billion (25.2% of total assets), Credit Agricole with $17.6B (4.0%), BNP Paribas with $16.8B (3.8%), Mitsubishi UFJ with $12.9B (2.9%), Wells Fargo with $10.7B (2.4%), RBC with $9.0B (2.0%), Sumitomo Mitsui Banking Co with $8.1B (1.8%), Bank of Nova Scotia with $7.8B (1.8%), Canadian Imperial Bank of Commerce with $7.6B (1.7%), Societe Generale with $7.5B (1.7%), Natixis with $7.3B (1.6%), Mizuho Corporate Bank LTD with $7.2B (1.6%), Credit Mutuel with $6.9B (1.6%), Federal Home Loan Bank with $6.7B (1.5%), Toronto-Dominion Bank with $6.7B (1.5%), Sumitomo Mitsui Trust Bank with $6.1B (1.4%), Bank of Montreal with $5.9B (1.3%), ING Bank with $5.9B (1.3%), DZ Bank AG with $5.8B (1.3%), and Svenska Handelsbanken with $5.7B (1.3%).
Euro MMFs tracked by Crane Data contain, on average 42% in CP, 28% in CDs, 14% in Other (primarily Time Deposits), 11% in Repo, 4% in Treasury securities and 1% in Agency securities. EUR funds have on average 21.1% of their portfolios maturing Overnight, 8.3% maturing in 2-7 Days, 13.3% maturing in 8-30 Days, 19.7% maturing in 31-60 Days, 15.1% maturing in 61-90 Days, 19.9% maturing in 91-180 Days and 2.6% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (31.3%), US (13.5%), Japan (11.5%), Germany (9.1%), Netherlands (6.7%), Sweden (6.0%), Belgium (5.1%), Great Britain (3.3%), Switzerland (3.0%), and Finland (2.2%).
The 15 Largest Issuers to "offshore" EUR money funds include: BNP Paribas with E5.9B (6.6%), Credit Agricole with E3.6B (4.1%), Rabobank with E3.6B (4.0%), Proctor & Gamble with E3.4B (3.8%), Societe Generale with E3.1B (3.5%), DZ Bank AG with E3.1B (3.4%), Credit Mutuel with E2.8B (3.2%), Mitsubishi UFJ Financial Group Inc with E2.8B (3.1%), BPCE SA with E2.7B (3.0%), Svenska Handelsbanken with E2.5B (2.7%), Republic of France with E2.4B (2.6%), Dexia Group with E2.3B (2.6%), Sumitomo Mitsui Banking Co. with E2.3B (2.5%), Nordea Bank with E2.2B (2.5%), and Norinchukin Bank with E2.1B (2.4%).
The GBP funds tracked by MFI International contain, on average (as of 11/30/16): 38% in CDs, 26% in Other (Time Deposits), 21% in CP, 10% in Repo, 5% in Treasury, and 0% in Agency. Sterling funds have on average 22.5% of their portfolios maturing Overnight, 6.6% maturing in 2-7 Days, 13.5% maturing in 8-30 Days, 16.4% maturing in 31-60 Days, 17.8% maturing in 61-90 Days, 19.3% maturing in 91-180 Days, and 3.9% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (15.5%), Japan (14.0%), Great Britain (13.3%), Netherlands (9.2%), Australia (9.2%), Germany (8.1%), Canada (6.4%), US (5.6%), Sweden (5.5%), and Belgium (2.7%).
The 15 Largest Issuers to "offshore" GBP money funds include: UK Treasury with L9.4B (6.4%), Rabobank with L5.7B (3.8%), Commonwealth Bank of Australia with L5.0B (3.4%), DZ Bank AG with L4.8B (3.2%), Credit Mutuel with L4.7B (3.2%), Mizuho Corporate Bank Ltd. with L4.5B (3.1%), Bank of America with L4.5B (3.1%), ING Bank with L4.5B (3.0%), BNP Paribas with L4.4B (3.0%), Mitsubishi UFJ Financial Group Inc. with L4.4B (3.0%), Sumitomo Mitsui Trust Bank with L4.1B (2.8%), Sumitomo Mitsui Banking Co. with L4.0B (2.7%), Credit Agricole with L3.8B (2.6%), Erste Abwicklungsanstalt with L3.7B (2.5%), Sevenska Handelsbanken with L3.6B (2.4%), Nordea Bank with L3.6B (2.4%), Westpac Banking Co. with L3.5B (2.3%), BPCE SA with L3.3B (2.3%), Dexia Group with L3.3B (2.2%), and Toronto-Dominion Bank with L3.3B (2.2%).
