The Investment Company Institute latest "Worldwide Regulated Open-Fund Assets and Flows, Third Quarter 2019" shows that money fund assets globally rose by $51.6 billion, or 0.3%, in Q3'19, breaking above the $6.6 trillion level to $6.626T. The increase was driven by big gains U.S.-based money funds, while money fund assets in China dropped again. MMF assets worldwide have increased by $646.6 billion, or 10.8%, the past 12 months, and money funds in the U.S. now represent 51.9% of worldwide assets. We review the latest Worldwide MMF totals, below.
ICI's release says, "Worldwide regulated open-end fund assets increased 3.0 percent to $51.61 trillion at the end of the third quarter of 2019, excluding funds of funds. Worldwide net cash inflow to all funds was $676 billion in the third quarter, compared with $339 billion of net inflows in the second 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 third 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 reduced by US dollar appreciation over the third quarter of 2019. For example, on a US dollar-denominated basis, fund assets in Europe decreased by 0.6 percent in the third quarter, compared with an increase of 3.9 percent on a euro-denominated basis."
ICI's quarterly continues, "On a US dollar–denominated basis, equity fund assets decreased by 0.4 percent to $22.64 trillion at the end of the third quarter of 2019. Bond fund assets increased by 2.6 percent to $11.39 trillion in the third quarter. Balanced/mixed fund assets increased by 1.7 percent to $6.47 trillion in the third quarter, while money market fund assets increased by 3.0 percent globally to $6.63 trillion."
The release also says, "At the end of the third 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 13 percent. Money market fund assets represented 13 percent of the worldwide total."
ICI adds, "Net sales of regulated open-end funds worldwide were $676 billion in the third quarter of 2019. Flows out of equity funds worldwide were $3 billion in the third quarter, after experiencing $45 billion of net inflows in the second quarter of 2019. Globally, bond funds posted an inflow of $271 billion in the third quarter of 2019, after recording an inflow of $235 billion in the second quarter.... Money market funds worldwide experienced an inflow of $311 billion in the third quarter of 2019 after registering an inflow of $72 billion in the second 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 Q319 with $3.441 trillion, or 51.9% of all global MMF assets. U.S. MMF assets increased by $239.6 billion (7.5%) in Q3'19 and increased by $577.5B (20.2%) in the 12 months through Sept. 30, 2019. China remained in second place among countries overall, despite assets declining in the latest quarter. China saw assets decrease $70.2 billion (-6.6%) in Q3, falling below $1.0 trillion for the first time in 2 years to $990.2 billion (14.9% of worldwide assets). Over the 12 months through Sept. 30, 2019, Chinese MMF assets have fallen by $212.0 billion, or -17.6%.
Ireland remained third among country rankings, ending Q3 with $599.8 billion (9.1% of worldwide assets). Dublin-based MMFs were up $41.1B for the quarter, or 7.3%, and up $44.4B, or 8.0%, over the last 12 months. Luxembourg remained in fourth place with $391.1 billion (5.9% of worldwide assets). Assets there increased $6.2 billion, or 1.6%, in Q3, and were up $31.1 billion, or 8.7%, over one year. France was in fifth place with $368.4B, or 5.6% of the total, down $2.8 billion in Q3 (-0.8%) and down $25.1B (-6.4%) over 12 months.
Australia was listed in sixth place with $235.1 billion (3.5%) Note that ICI's data includes this footnote for Australia: "Due to a reclassification, a portion of the assets from the 'other' category have been moved into the money market and real estate categories." Australia's MMF assets were mysteriously shifted into the "Other" category several years ago but just reappeared this quarter. Japan was in seventh place with $104.5 billion (1.6%); assets there rose $1.8 billion (1.8%) in Q3 and increased by $1.2 billion 1.2%) over 12 months.
Korea, the 8th ranked country, saw MMF assets decreased $4.1 billion, or -4.5%, in Q3'19 to $86.3 billion (1.3% of the world's total MMF assets); they've risen $3.3 billion (4.0%) for the year. Brazil was in 9th place, as assets decreased $3.1 billion, or -3.7%, to $80.9 billion (1.2% of total assets) in Q3. They've increased $9.6 billion (13.5%) over the previous 12 months. ICI's statistics show Mexico increased to 10th place with $65.1B, or 1.0% of total, down $969M (-1.5%) in Q3 and up $3.8 (6.2%) for the year. India was in 11th place, decreasing $2.4 billion, or -3.7%, to $63.8 billion (1.0% of total assets) in Q3 and increasing $9.4 billion (17.2%) over the previous 12 months.
The United Kingdom ($26.2B, up $97M and down $664M over the quarter and year, respectively) ranked 12th ahead of Chinese Taipei ($24.9B, up $1.2B and up $1.0B). Canada ($24.6B, up $1.5B and up $4.1B) and South Africa ($24.1B, down $738M and up $633B), rank 13th through 15th, respectively. Switzerland, Chile, Norway, Germany and Belgium round out the 20 largest countries with money market mutual funds.
ICI's quarterly series shows money fund assets in the Americas total $3.634 trillion, up $234.9 billion in Q3. Asian MMFs increased by $162.3 billion to $1.512 trillion, while Europe saw its money funds increase by $36.8 billion in Q3'19 to $1.453 trillion. Africa saw its money funds decrease $738M to $24.1 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 or if you'd like to see our MFI International product.
