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 $1.239 trillion, while yields inched lower. Assets for USD & EUR MMFs rose over the past month, while assets for GBP MMFs fell. Last month, European MMF assets broke above last month's previous record high of $1.210 trillion. These U.S.-style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, increased by $28.4 billion over the 30 days through 2/13. The totals are up $41.4 billion (3.5%) year-to-date for 2024, they were up $166.9 billion (16.2%) for the year 2023. (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 and are almost entirely institutional.)
Offshore US Dollar money funds increased $20.8 billion over the last 30 days and are up $27.1 billion YTD to $676.7 billion; they increased $100.0 billion in 2023. Euro funds increased E6.7 billion over the past month. YTD, they're up E3.2 billion to E238.1 billion, for 2023, they increased by E54.5 billion. GBP money funds decreased L1.8 billion over 30 days, and they're up L6.4 billion YTD at L241.8B, for 2023, they fell L28.1 billion. U.S. Dollar (USD) money funds (211) account for over half (54.6%) of the "European" money fund total, while Euro (EUR) money funds (117) make up 20.7% and Pound Sterling (GBP) funds (140) total 24.7%. We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers Thursday), below.
Offshore USD MMFs yield 5.27 (7-Day) on average (as of 2/13/24), down 3 bps from 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 3.88% on average, up 2 bps from 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 7 months ago and now yield 5.21%, down 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 February MFI International Portfolio Holdings, with data as of 1/31/24, show that European-domiciled US Dollar MMFs, on average, consist of 23% in Commercial Paper (CP), 16% in Certificates of Deposit (CDs), 23% in Repo, 23% in Treasury securities, 14% in Other securities (primarily Time Deposits) and 1% in Government Agency securities. USD funds have on average 46.1% of their portfolios maturing Overnight, 5.3% maturing in 2-7 Days, 10.4% maturing in 8-30 Days, 7.8% maturing in 31-60 Days, 8.2% maturing in 61-90 Days, 14.6% maturing in 91-180 Days and 7.6% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (39.5%), France (10.5%), Canada (8.9%), Japan (8.6%), Sweden (7.1%), the U.K. (5.6%), the Netherlands (3.9%), Australia (3.1%), Germany (2.2%), and Belgium (2.0%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $163.8 billion (23.0% of total assets), Fixed Income Clearing Corp with $42.8B (6.0%), Barclays PLC with $25.3B (3.5%), BNP Paribas with $18.2B (2.6%), Credit Agricole with $17.6B (2.5%), Mizuho Corporate Bank Ltd with $16.9B (2.4%), Nordea Bank with $16.6B (2.3%), RBC with $16.3B (2.3%), JP Morgan with $15.2B (2.1%) and Toronto-Dominion Bank with $13.5B (1.9%).
Euro MMFs tracked by Crane Data contain, on average 42% in CP, 22% in CDs, 19% in Other (primarily Time Deposits), 16% in Repo, 1% in Treasuries and 0% in Agency securities. EUR funds have on average 41.2% of their portfolios maturing Overnight, 6.5% maturing in 2-7 Days, 16.1% maturing in 8-30 Days, 11.4% maturing in 31-60 Days, 11.0% maturing in 61-90 Days, 8.3% maturing in 91-180 Days and 5.6% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (30.3%), Japan (14.2%), the U.S. (10.0%), Canada (6.7%), the U.K. (6.7%), Germany (5.4%), the Netherlands (4.6%), Austria (4.3%), Sweden (4.0%) and Belgium (3.4%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E12.9B (6.1%), BNP Paribas with E12.4B (5.8%), Credit Mutuel with E9.2B (4.3%), Republic of France with E8.2B (3.9%), Mizuho Corporate Bank Ltd with E7.9B (3.7%), Mitsubishi UFJ Financial Group Inc with E7.8B (3.7%), Erste Group Bank AG with E7.2B (3.4%), Societe Generale with E6.7B (3.2%), JP Morgan with E6.7B (3.2%) and Sumitomo Mitsui Banking Corp with E6.2B (2.9%).
The GBP funds tracked by MFI International contain, on average (as of 1/31/24): 38% in CDs, 18% in CP, 23% in Other (Time Deposits), 19% in Repo, 2% in Treasury and 0% in Agency. Sterling funds have on average 38.5% of their portfolios maturing Overnight, 8.1% maturing in 2-7 Days, 11.2% maturing in 8-30 Days, 8.5% maturing in 31-60 Days, 12.6% maturing in 61-90 Days, 16.3% maturing in 91-180 Days and 4.9% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (16.9%), Japan (16.1%), the U.K. (15.0%), Canada (12.8%), the U.S. (9.3%), Australia (7.4%), the Netherlands (4.2%), Sweden (4.1%), Singapore (3.0%) and Spain (2.6%).
The 10 Largest Issuers to "offshore" GBP money funds include: UK Treasury with L14.9B (6.5%), BNP Paribas with L9.7B (4.2%), Toronto-Dominion Bank with L9.6B (4.2%), Mizuho Corporate Bank Ltd with L9.5B (4.1%), Mitsubishi UFJ Financial Group Inc with L8.4B (3.6%), Sumitomo Mitsui Trust Bank with L8.4B (3.6%), Credit Agricole with L7.9B (3.5%), BPCE SA with L7.2B (3.1%), Sumitomo Mitsui Banking Corp with L6.9B (3.0%) and JP Morgan with L6.8B (3.0%).
