Crane Data's latest Money Fund Intelligence International shows that assets in European or "offshore" money market mutual funds moved higher again over the past 30 days to a record $1.149 trillion, and yields also inched higher. Assets for USD, EUR and GBP MMFs all rose over the past month. Last month, European MMF assets broke above their previous record high of $1.101 trillion set in mid-December 2021, and they've now surpassed last month's record of $1.117 trillion. These U.S.-style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, increased by $32.7 billion over the 30 days through 11/13. The totals are up $119.1 billion (11.6%) year-to-date. (Note that currency moves in the U.S. dollar cause Euro and Sterling totals to shift when they're translated back into totals in U.S. dollars. See our latest MFI International for more on the "offshore" money fund marketplace. These funds are only available to qualified, non-U.S. investors.)
Offshore US Dollar money funds increased $21.2 billion over the last 30 days and are up $84.1 billion YTD to $633.6 billion. Euro funds increased E7.3 billion over the past month. YTD, they're up E28.3 billion to E208.7 billion. GBP money funds increased L2.9 billion over 30 days, and they're still down L31.1 billion YTD at L232.4B. U.S. Dollar (USD) money funds (206) account for over half (55.1%) of the "European" money fund total, while Euro (EUR) money funds (115) make up 19.5% and Pound Sterling (GBP) funds (139) total 25.4%. We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers Tuesday), below.
Offshore USD MMFs yield 5.32% (7-Day) on average (as of 11/13/23), up from 5.30% a month earlier. Yields averaged 4.20% on 12/30/22, 0.03% on 12/31/21, 0.05% on 12/31/20, 1.59% on 12/31/19 and 2.29% on 12/31/18. EUR MMFs finally left negative yield territory in the second half of 2022 but they should remain flat until the ECB moves rates again. They're yielding 3.85% on average, up from 3.83% a month ago and up from 1.48% on 12/30/22, -0.80% on 12/31/21, -0.71% at year-end 2020, -0.59% at year-end 2019 and -0.49% at year-end 2018. Meanwhile, GBP MMFs broke the 5.0% barrier 4 months ago and now yield 5.24%, up 2 bps from a month ago, and up from 3.17% on 12/30/22. Sterling yields were 0.01% on 12/31/21, 0.00% on 12/31/20, 0.64% on 12/31/19 and 0.64% on 12/31/18.
Crane's November MFI International Portfolio Holdings, with data as of 10/31/23, show that European-domiciled US Dollar MMFs, on average, consist of 23% in Commercial Paper (CP), 16% in Certificates of Deposit (CDs), 26% in Repo, 19% in Treasury securities, 15% in Other securities (primarily Time Deposits) and 1% in Government Agency securities. USD funds have on average 50.8% of their portfolios maturing Overnight, 7.8% maturing in 2-7 Days, 7.2% maturing in 8-30 Days, 8.3% maturing in 31-60 Days, 7.2% maturing in 61-90 Days, 13.2% maturing in 91-180 Days and 5.5% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (39.1%), France (13.2%), Canada (9.5%), Japan (8.7%), Sweden (5.4%), the U.K. (5.0%), the Netherlands (4.4%), Australia (3.1%), Germany (2.2%), and Belgium (1.5%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $125.1 billion (19.0% of total assets), Fixed Income Clearing Corp with $36.9B (5.6%), Credit Agricole with $24.0B (3.6%), BNP Paribas with $21.5B (3.3%), Barclays with $20.2B (3.1%), Mizuho Corporate Bank Ltd with $17.5B (2.6%), Bank of America with $17.0B (2.6%), RBC with $17.0B (2.6%), and Citi with $16.4B (2.5%) and JP Morgan with $14.6B (2.2%).
Euro MMFs tracked by Crane Data contain, on average 40% in CP, 20% in CDs, 20% in Other (primarily Time Deposits), 15% in Repo, 5% in Treasuries and 0% in Agency securities. EUR funds have on average 37.2% of their portfolios maturing Overnight, 10.1% maturing in 2-7 Days, 14.3% maturing in 8-30 Days, 7.5% maturing in 31-60 Days, 15.3% maturing in 61-90 Days, 9.3% maturing in 91-180 Days and 6.3% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (31.3%), Japan (12.8%), the U.S. (10.5%), the U.K. (6.9%), Canada (6.9%), Germany (5.1%), Austria (4.8%), Sweden (4.3%), Belgium (3.5%) and the Netherlands (3.4%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E11.4B (6.1%), Republic of France with E11.0B (5.9%), BNP Paribas with E9.6B (5.1%), Credit Mutuel with E7.0B (3.8%), Erste Group Bank AG with E6.5B (3.5%), Mitsubishi UFJ Financial Group Inc with E6.4B (3.4%), BPCE SA with E6.4B (3.4%), Societe Generale with E5.9B (3.2%), Banco Santander with E5.2B (2.8%), and Bank of Nova Scotia with E4.9B (2.6%).
The GBP funds tracked by MFI International contain, on average (as of 10/31/23): 38% in CDs, 15% in CP, 24% in Other (Time Deposits), 19% in Repo, 4% in Treasury and 0% in Agency. Sterling funds have on average 37.7% of their portfolios maturing Overnight, 10.7% maturing in 2-7 Days, 9.8% maturing in 8-30 Days, 5.0% maturing in 31-60 Days, 13.8% maturing in 61-90 Days, 16.0% maturing in 91-180 Days and 7.0% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (17.3%), Japan (16.6%), the U.K. (14.6%), Canada (14.2%), the U.S. (8.1%), Australia (7.4%), the Netherlands (4.4%), Sweden (3.6%), Spain (3.0%) and Singapore (2.6%).
The 10 Largest Issuers to "offshore" GBP money funds include: Mizuho Corporate Bank Ltd with L9.4B (4.4%), BNP Paribas with L9.1B (4.2%), Toronto-Dominion Bank with L9.0B (4.2%), UK Treasury with L8.8B (4.1%), Mitsubishi UFJ Financial Group Inc with L8.7B (4.0%), Sumitomo Mitsui Trust Bank with L8.2B (3.8%), Credit Agricole with L7.9B (3.7%), BPCE SA with L7.1B (3.3%), RBC with L6.8B (3.2%) and Banco Santander with L6.4B (3.0%).
