Crane Data's latest MFI International shows total assets in "offshore" money market mutual funds, U.S.-style funds domiciled in Ireland or Luxemburg and denominated in USD and Euro remain down year-to-date, though they've recently trimmed their losses. Through 7/12/19, overall MFII assets are down $11.5 billion to $834.5 billion. (They rose $15.2 billion in 2018.) Offshore USD money funds are down $3.4 billion YTD (they rose $28.8B last year). Euro funds are still feeling the pain of negative rates and recent European MMF reforms; they're down E7.9 billion YTD (following 2 flat years). GBP funds are up, however, by L5.6 billion. U.S. Dollar (USD) money funds (173) account for over half ($450.6 billion, or 54.0%) of our "European" money fund total, while Euro (EUR) money funds (76) total E91.1 billion (11.0%) and Pound Sterling (GBP) funds (103) total L215.0 billion (26.0%). We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers Monday), below, and we also give an update on our European Money Fund Symposium conference, which will take place Sept. 23-24 in Dublin.
Offshore USD MMFs yield 2.25% (7-Day) on average (as of 7/12/19), up from 2.29% on 12/31/18, 1.19% at the end of 2017 and 0.56% at the end of 2016. EUR MMFs yield -0.50 on average, compared to -0.49% at year-end 2018, -0.55% on 12/29/17 and -0.49% on 12/30/16. Meanwhile, GBP MMFs yielded 0.66%, up from 0.64% on 12/31/18, from 0.24% at the end of 2017 and 0.19% at the end of 2016. (See our latest MFI International for more on the "offshore" money fund marketplace. Note that these funds are only available to qualified, non-U.S. investors.)
Crane's MFII Portfolio Holdings, with data (as of 6/30/19), show that European-domiciled US Dollar MMFs, on average, consist of 29% in Commercial Paper (CP), 24% in Repurchase Agreements (Repo), 21% in Certificates of Deposit (CDs), 12% in Other securities (primarily Time Deposits), 13% in Treasury securities and 1% in Government Agency securities. USD funds have on average 38.6% of their portfolios maturing Overnight, 8.9% maturing in 2-7 Days, 17.8% maturing in 8-30 Days, 11.7% maturing in 31-60 Days, 8.7% maturing in 61-90 Days, 11.2% maturing in 91-180 Days and 2.9% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (24.9%), France (14.0%), Canada (12.3%), Japan (11.8%), the United Kingdom (9.1%), Germany (7.0%), the Netherlands (3.8%), Sweden (3.4%), Australia (2.5%), Singapore (2.3%), China (2.3%), Switzerland (2.0%), Norway (1.3%) and Belgium (0.9%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $61.1 billion (12.5% of total assets), BNP Paribas with $20.2B (4.1%), Barclays PLC with $18.1B (3.7%), Bank of Nova Scotia with $17.5B (3.6%), Wells Fargo with $16.9B (3.5%), Mitsubishi UFJ Financial Group Inc with $15.4B (3.2%), RBC with $12.2B (2.5%), Sumitomo Mitsui Banking Co with $11.9B (2.4%), Toronto-Dominion Bank with $11.9B (2.4%) and Mizuho Corporate Bank Ltd with $11.3B (2.3%).
Euro MMFs tracked by Crane Data contain, on average 48% in CP, 24% in CDs, 19% in Other (primarily Time Deposits), 5% in Repo, 1% in Agency securities and 3% in Treasuries. EUR funds have on average 23.2% of their portfolios maturing Overnight, 7.7% maturing in 2-7 Days, 18.7% maturing in 8-30 Days, 16.3% maturing in 31-60 Days, 15.5% maturing in 61-90 Days, 15.3% maturing in 91-180 Days and 3.1% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (29.8%), Japan (14.1%), Germany (11.8%), the US (10.4%), Sweden (7.6%), the Netherlands (4.4%), the U.K. (4.4%), China (3.3%), Switzerland (2.8%), Canada (2.4%), Finland (2.1%), Belgium (1.4%) and Abu Dhabi (1.4%).
The 10 Largest Issuers to "offshore" EUR money funds include: BNP Paribas with E4.8B (5.4%), Credit Agricole with E4.2B (4.7%), Mitsubishi UFJ Financial Group with E3.6B (4.0%), Republic of France with E3.5B (3.9%), BPCE with E3.4B (3.8%), Societe Generale with E2.7B (3.1%), Procter & Gamble Co with E2.7B (3.1%), Credit Mutuel with E2.7B (3.1%), Mizuho Corporate Bank with E2.7B (3.1%) and Nordea Bank with E2.6B (3.0%).
The GBP funds tracked by MFI International contain, on average (as of 6/30/19): 36% in CDs, 25% in Other (Time Deposits), 23% in CP, 13% in Repo, 3% in Treasury and 0% in Agency. Sterling funds have on average 25.6% of their portfolios maturing Overnight, 9.1% maturing in 2-7 Days, 14.8% maturing in 8-30 Days, 14.3% maturing in 31-60 Days, 12.6% maturing in 61-90 Days, 16.7% maturing in 91-180 Days and 7.0% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: Japan (17.7%), France (17.6%), the United Kingdom (16.5%), Canada (10.0%), Germany (6.4%), Sweden (5.4%), the Netherlands (4.6%), United States (4.2%), Australia (3.9%), Singapore (3.2%), China (2.5%) and Abu Dhabi (2.2%).
The 10 Largest Issuers to "offshore" GBP money funds include: the UK Treasury with L13.2B (7.9%), Mizuho Corporate Bank Ltd with L7.7B (4.6%), BPCE SA with L6.8B (4.1%), Mitsubishi UFJ Financial Group Inc with L6.7B (4.0%), BNP Paribas with L6.4B (3.8%), Credit Agricole with L6.4B (3.8%), Sumitomo Mitsui Banking Co with L6.2B (3.7%), Sumitomo Mitsui Trust Bank with L5.9B (3.6%), Nordea Bank with L5.7B (3.4%) and DZ Bank AG with L4.7B (2.8%).
We also continue making preparations for the 7th Annual Crane's European Money Fund Symposium, which will take place Sept. 23-24 at The Hilton Dublin in Dublin, Ireland. The latest agenda is available and registrations are being taken for the largest money market fund gathering in Europe. More details are below, and feel free to contact us for more information. We hope to see you in Dublin this fall!
Last year's European Crane Symposium in London attracted 140 attendees, sponsors and speakers -- our largest European event ever. Given the recent implementation of new money fund regulations and structures in Europe, the continued "repatriation" of assets back to the U.S., Brexit and the ongoing issue of negative interest rates, we expect our show in Dublin to attract a high level of interest this year. "European Money Fund Symposium offers European, global and "offshore" money market portfolio managers, investors, issuers, dealers and service providers a concentrated and affordable educational experience, and an excellent and informal networking venue," says Crane Data President, Peter Crane. "Our mission is to deliver the best possible conference content at an affordable price to money market fund professionals," he adds.
EMFS will be held at the The Hilton Dublin. Hotel rooms must be booked before Monday, August 21 to receive the discounted rate of E295. Registration for our 2019 Crane's European Money Fund Symposium is $1,000 USD. Visit www.euromfs.com to register, or contact us to request the PDF brochure or for Sponsorship pricing and info.
The EMFS agenda features sessions conducted by many of the leading authorities on money funds in Europe and worldwide. The Day One Agenda for Crane's European Money Fund Symposium includes: "Welcome to European Money Fund Symposium" with Peter Crane of Crane Data; followed by "Money Market Funds in Ireland" with Pat Lardner and Patrick Rooney of Irish Funds; "Euro Money Funds & Continental Issues," with David Callahan of Lombard Odier, Nathalie Dogniez of PwC Luxembourg (invited) and Joe McConnell, from J.P. Morgan Asset Management.
The afternoon will consist of: "Senior Portfolio Manager Perspectives," moderated by Kieran Davis of BGC Partners and featuring Neil Hutchison of J.P. Morgan A.M., Dan Farrell of Northern Trust AM and Jim O'Connor of Dreyfus/BNY Mellon CIS; "IMMFA Update: The State of MMFs in Europe" with Kim Hochfeld of Morgan Stanley I.M. (and IMMFA Chair); "Environmental & Social Money Fund Screening" with James Vincent of Goldman Sachs A.M., Andrew Paranthoiene of S&P Global Ratings and Abis Soetan of Fitch Ratings; "U.K. & Sterling MMF Issues" with Dennis Gepp of Federated Investors (UK) LLP and Paul Mueller of Invesco; and a "Dealer Update & Issuance Outlook" with Marianne Medora of Groupe BPCE/Natixis, Jean-Luc Sinniger of Citi Global Markets and Dan Singer of J.P. Morgan Securities.
The Day Two Agenda includes: "European MM Reforms: Finishing Touches" with John Aherne of William Fry and John Hunt of Sullivan & Worcester LLP; a "French & Continental Money Fund Update" with Vanessa Robert of Moody's Investors Service and Alastair Sewell of Fitch Ratings; and, "Strategists Speak: Negative Rates, Markets" with Ruairi Hourihane of Bank of America Merrill Lynch. The second day's afternoon will include: a "U.S. Money Fund & European USD Update" with Peter Crane of Crane Data, Deborah Cunningham of Federated Investors and Rob Sabatino of UBS Asset Management; "Chinese Money Funds & Asian Markets" with Andrew Paranthoiene of S&P Global Ratings, and Alastair Sewell of Fitch Ratings; and, "Offshore Money Fund Information" with Peter Crane.
