The Investment Company Institute, the mutual fund industry's trade association, released its latest "Worldwide Mutual Fund Assets and Flows" data collection, which shows that global money market mutual fund assets decreased in the First Quarter of 2015. The latest report says total worldwide money fund assets dropped $89 billion to $4.458 trillion. (When Australia's approximately $322.1 billion is included, total Worldwide money fund assets stand at $4.859 trillion.) China, Korea, and Mexico were bright spots in Q1, all gaining assets. China moved into third place among the largest money fund markets in various countries (behind the U.S. and Ireland), pushing France to fourth. Globally, MMF assets increased by $64.6 billion, or 1.3%, over the past year (through 3/31/15). (Note: Crane Data's Peter Crane and Standard & Poor's Andrew Paranthoiene will speak on "MMFs in Asia & Emerging Markets next month at European Money Fund Symposium in Dublin, Sept. 17-18. Crane's European MF Symposium is the largest gathering of money fund professionals outside the U.S.)
ICI's latest quarterly release says, "Worldwide regulated open-end fund assets increased 0.8 percent to $37.28 trillion at the end of the first quarter of 2015, excluding funds of funds. Worldwide net cash flow to all funds was $554 billion in the first quarter, compared to $548 billion of net inflows in the fourth quarter of 2014. Bond fund assets decreased 1.1 percent to $8.18 trillion in the first quarter. Balanced/mixed fund assets rose 1.3 percent in the first quarter, while money market fund assets fell 2.0 percent globally."
It continues, "Globally, bond funds posted an inflow of $194 billion in the first quarter of 2015, after recording an inflow of $108 billion in the fourth quarter.... Money market funds worldwide experienced an outflow of $13 billion in the first quarter of 2015 after registering an inflow of $145 billion in the fourth quarter of 2014. The global outflow from money market funds in the first quarter was driven by outflows of $80 billion in the Americas that were partially offset by inflows of $48 billion in Europe and $18 billion in the Asia-Pacific region."
Further, ICI writes, "At the end of the first quarter of 2015, 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 12 percent of the worldwide total."
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 Q1'15 with $2.645 trillion (or 54.4% of all global MMF assets). U.S. MMF assets decreased by $79.9 billion in Q1'15, and were up by $13.9B in the 12 months through March 31, 2015. Ireland remained the second largest money market fund country, ending Q1 with $383.2 billion (7.9% of worldwide assets), up $4.3B for the quarter but down $1.7B over the last 12 months. As previously mentioned, China continued its dramatic rise, moving into third place among countries overall. China saw assets grow $13.0 billion (up 3.9%) in Q1 to $349.2 billion (7.2% of worldwide assets). Over the last 12 months through March 31, 2015, Chinese MMF assets up are $114.7 billion, or 48.9%.
France dropped to fourth place with $328.7 billion (6.8% of worldwide assets), down $20.5 billion in Q1 and down a massive $116.1 billion over 1 year. Australia was in 5th place worldwide with $322.1 billion (6.6%). (Note that ICI's data didn't include money fund figures for Australia again this quarter. We continue to estimate these at $322 billion, the same amount as two quarters again. Australia's MMF assets were shifted into the "Other" category two quarters ago but there's been no explanation from Australia's fund association on why.)
Luxembourg remained in 6th place with $298.2B, or 6.1% of the total (down $6.1 billion in Q1 and down $23.2B for 1 year). Korea, the 7th ranked country, had the largest gain of all countries, climbing $16.0 billion, or 21.0%, to $92.3 billion (1.9% of total) in Q1 and $21.9 billion (31.2%) for the year. Mexico moved up to 8th place, jumping $9.9 billion, or 20.2%, to $58.9 billion (1.2% of total assets) in Q1 and $4.6 billion (8.4%) over the previous 12 months. ICI's latest Worldwide statistics also show Brazil ($41.6B, down $3.2B and down $13.5B on the quarter and year, respectively) and India ($26.0B, down $2.3B and up $3.7B) as the 9th and 10th largest money fund markets.
Taiwan ($25.2B, up $1.2B and down $2.5B), South Africa ($19.7B, down $1.1B and down $4.0B), Canada ($19.2B, down $2.0B and down $5.1B), Switzerland ($19.1B, down $512M and up $704M), and Sweden ($18.4B, down $1.9B and up $1.4B) ranked 11th through 15th, respectively. Japan, Chile, Finland, Germany, and United Kingdom round out the 20 largest countries that have money market mutual funds.
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. (Crane Data believes that some of these countries, like France and Italy, do not have true "money market funds" due to their lack of strict guidelines and "accumulating" NAVs instead of stable NAVs.) 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, which tracks the "offshore" or international money fund market (mainly domiciled in Dublin and Luxembourg), shows assets down $69.7 billion year-to-date through July 31, 2015, to $685.0 billion. USD-denominated money funds are down $24.2 billion YTD to $359.5B. GBP-denominated MMFs are up L300 million to L152.7B, while Euro-denominated money funds are up E12.3 billion to E78.4 billion.
