The Investment Company Institute latest "Worldwide Regulated Open-Fund Assets and Flows, Second Quarter 2019" shows that money fund assets globally rose by $32.5 billion, or 0.5%, in Q2'19, break above the $6.1 trillion level to $6.192T. The increase was driven by big gains U.S.-based money funds, but money fund assets in China plummeted. MMF assets worldwide have increased by $230.2 billion, or 3.9%, the past 12 months, and money funds in the U.S. now represent 52.0% of worldwide assets. We review the latest Worldwide MMF totals, below. (Thanks again to those who attended our European Money Fund Symposium in Dublin earlier this week too!)
ICI's release says, "Worldwide regulated open-end fund assets increased 2.9 percent to $51.43 trillion at the end of the second quarter of 2019, excluding funds of funds. Worldwide net cash inflow to all funds was $340 billion in the second quarter, compared with $320 billion of net inflows in the first quarter of 2019. The Investment Company Institute compiles worldwide open-end fund statistics on behalf of the International Investment Funds Association, the organization of national fund associations. The collection for the second quarter of 2019 contains statistics from 47 jurisdictions."
It explains, "The growth rate of total regulated open-end fund assets reported in US dollars was boosted by a slight depreciation of the US dollar over the second quarter of 2019. For example, on a US dollar-denominated basis, fund assets in Europe increased by 2.9 percent in the second quarter, compared with an increase of 1.6 percent on a euro-denominated basis."
ICI's quarterly continues, "On a US dollar-denominated basis, equity fund assets increased by 2.9 percent to $22.72 trillion at the end of the second quarter of 2019. Bond fund assets increased by 4.4 percent to $11.10 trillion in the second quarter. Balanced/mixed fund assets increased by 2.8 percent to $6.36 trillion in the second quarter, while money market fund assets increased by 0.5 percent globally to $6.19 trillion."
The release also says, "At the end of the second quarter of 2019, 44 percent of worldwide regulated open-end fund assets were held in equity funds. The asset share of bond funds was 22 percent and the asset share of balanced/mixed funds was 12 percent. Money market fund assets represented 12 percent of the worldwide total."
ICI adds, "Net sales of regulated open-end funds worldwide were $340 billion in the second quarter of 2019. Flows out of equity funds worldwide were $45 billion in the second quarter, after experiencing $28 billion of net inflows in the first quarter of 2019. Globally, bond funds posted an inflow of $236 billion in the second quarter of 2019, after recording an inflow of $267 billion in the first quarter.... Money market funds worldwide experienced an inflow of $72 billion in the second quarter of 2019 after registering an inflow of $36 billion in the first quarter of 2019."
According to Crane Data's analysis of ICI's "Worldwide" fund data, the U.S. strengthened its position as the largest money fund market in Q219 with $3.201 trillion, or 52.0% of all global MMF assets. U.S. MMF assets increased by $122.1 billion (4.0%) in Q2'19 and increased by $380.9B (13.5%) in the 12 months through June 30, 2019. China remained in second place among countries overall, despite assets plunging in the latest quarter. China saw assets decrease $110.9 billion (-9.5%) in Q2 to $1.060 trillion (17.2% of worldwide assets). Over the 12 months through June 30, 2019, Chinese MMF assets have fallen by $104.8 billion, or -9.0%.
Ireland remained third among country rankings, ending Q2 with $558.7 billion (9.1% of worldwide assets). Dublin-based MMFs were up $13.1B for the quarter, or 2.4%, but down $10.2B, or -1.8%, over the last 12 months. Luxembourg remained in fourth place with $384.9 billion (6.2% of worldwide assets). Assets there decreased $666 million, or 0.2%, in Q2, and were up $27.7 billion, or 7.7%, over one year. France was in fifth place with $371.2B, or 6.0% of the total, down $9.2 billion in Q2 (-2.4%) and down $34.5B (-8.5%) over 12 months.
Japan remained in sixth place with $102.7 billion (1.7%); assets there rose $5.1 billion (5.3%) in Q2 and decreased by $4.3 billion (-4.1%) over 12 months. Korea, the 7th ranked country, saw MMF assets rise $2.4 billion, or 2.8%, in Q2'19 to $90.4 billion (1.5% of the world's total MMF assets); they've fallen $4.7 billion (-5.0%) for the year. Brazil remained in 8th place, as assets increased $5.4 billion, or 6.6%, to $84.0 billion (1.4% of total assets) in Q2. They've increased $9.3 billion (12.5%) over the previous 12 months.
ICI's statistics show India remaining in 9th place with $66.3B, or 1.1% of total, up $2.5B (4.0%) in Q2 and down $579M (-0.9%) for the year. Mexico was in 10th place, increasing $3.2 billion, or 5.1%, to $66.1 billion (1.1% of total assets) in Q2 and increasing $10.0 billion (17.7%) over the previous 12 months. (Note that ICI's data no longer includes money fund figures for Australia. Australia's MMF assets, which had been one of the largest markets in the world, were mysteriously shifted into the "Other" category several years ago.)
The United Kingdom ($26.1B, up $139M and down $3.3B over the quarter and year, respectively) ranked 11th ahead of South Africa ($24.8B, up $483M and up $2.6B). Chinese Taipei ($23.6B, down $891M and down $565M), Canada ($23.1B, up $907M and up $3.0B), and Chile ($20.0B, up $605M and down $4.0B) rank 13th through 15th, respectively. Switzerland, Belgium, Norway, Germany and Spain round out the 20 largest countries with money market mutual funds.
ICI's quarterly series shows money fund assets in the Americas total $3.402 trillion, up $132.7 billion in Q2, while European money funds moved back ahead of Asia and Pacific money funds for the first time since Q3'18. Asian MMFs decreased by $101.9 billion to $1.350 trillion, while Europe saw its money funds increase by $1.2 billion in Q2'19 to $1.416 trillion. Africa saw its money funds increase $483M to $24.8 billion.
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 mainly domestic money fund offerings. Contact us if you'd like our latest "Largest Money Market Funds Markets Worldwide" spreadsheet, based on ICI's data, if you'd like to see our MFI International product, or if you'd like to see Powerpoints on Chinese, French or Irish money funds from our latest European Symposium.
