Crane Data's latest Money Fund Intelligence International shows that assets in European or "offshore" money market mutual funds moved higher over the past 30 days to a record $1.292 trillion, while yields were mostly flat. Assets for EUR and GBP MMFs rose over the past month, while USD MMFs fell. Like U.S. money fund assets, European MMFs have repeatedly hit record highs in 2023 and 2024. These U.S.-style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, increased by $20.7 billion over the 30 days through 7/12. The totals are up $94.6 billion (7.9%) 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.) (Note too: Please join us for our European Money Fund Symposium, which will take place Sept. 19-20, 2024 in London, England. Registrations are $1,000 and our discounted hotel rate expires August 14.)
Offshore US Dollar money funds decreased $815 million over the last 30 days and are up $35.1 billion YTD to $684.6 billion; they increased $100.0 billion in 2023. Euro funds increased E19.6 billion over the past month. YTD, they're up E35.7 billion to E270.6 billion, for 2023, they increased by E54.5 billion. GBP money funds increased L293 million over 30 days, and they're up L14.6 billion YTD at L249.9B, for 2023, they fell L28.1 billion. U.S. Dollar (USD) money funds (214) account for over half (53.0%) of the "European" money fund total, while Euro (EUR) money funds (122) make up 22.6% and Pound Sterling (GBP) funds (143) total 24.4%. We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers Monday), below.
Offshore USD MMFs yield 5.23 (7-Day) on average (as of 7/12/24), unchanged 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 3.65% on average, down 14 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 12 months ago and now yield 5.13%, down 1 bp 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 July MFI International Portfolio Holdings, with data as of 6/30/24, show that European-domiciled US Dollar MMFs, on average, consist of 26% in Commercial Paper (CP), 16% in Certificates of Deposit (CDs), 23% in Repo, 23% in Treasury securities, 11% in Other securities (primarily Time Deposits) and 1% in Government Agency securities. USD funds have on average 43.0% of their portfolios maturing Overnight, 8.3% maturing in 2-7 Days, 9.8% maturing in 8-30 Days, 10.5% maturing in 31-60 Days, 7.2% maturing in 61-90 Days, 14.0% maturing in 91-180 Days and 7.2% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (40.4%), France (11.5%), Canada (9.3%), Japan (8.3%), the U.K. (4.6%), the Netherlands (4.2%), Australia (3.9%), Sweden (3.4%), Germany (3.0%) and Finland (2.8%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $160.7 billion (23.3% of total assets), Fixed Income Clearing Corp with $38.3B (5.5%), Nordea Bank with $18.1B (2.6%), BNP Paribas with $18.0B (2.6%), Credit Agricole with $17.9B (2.6%), RBC with $17.9B (2.6%), Citi with $14.2B (2.1%), Toronto-Dominion Bank with $14.1B (2.0%), JP Morgan with $14.0B (2.0%), and Bank of America with $13.9B (2.0%).
Euro MMFs tracked by Crane Data contain, on average 42% in CP, 21% in CDs, 19% in Other (primarily Time Deposits), 16% in Repo, 2% in Treasuries and 0% in Agency securities. EUR funds have on average 37.6% of their portfolios maturing Overnight, 11.4% maturing in 2-7 Days, 12.6% maturing in 8-30 Days, 8.7% maturing in 31-60 Days, 8.9% maturing in 61-90 Days, 12.7% maturing in 91-180 Days and 8.0% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (30.3%), Japan (12.6%), the U.S. (8.8%), Germany (8.1%), Canada (6.1%), the U.K. (5.1%), Austria (4.6%), Australia (3.7%), Netherlands (3.7%) and Belgium (3.6%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E13.4B (6.0%), Republic of France with E10.8B (4.8%), BNP Paribas with E10.5B (4.7%), JP Morgan with E9.7B (4.3%), DZ Bank AG with E8.7B (3.9%), Credit Mutuel with E8.2B (3.7%), Societe Generale with E8.2B (3.6%), Erste Group Bank AG with E7.0B (3.1%), Mitsubishi UFJ Financial Group Inc with E6.6B (3.0%) and Sumitomo Mitsui Banking Corp with E6.6B (2.9%).
The GBP funds tracked by MFI International contain, on average (as of 6/30/24 ): 40% in CDs, 19% in CP, 22% in Other (Time Deposits), 16% in Repo, 3% in Treasury and 0% in Agency. Sterling funds have on average 33.8% of their portfolios maturing Overnight, 10.6% maturing in 2-7 Days, 11.1% maturing in 8-30 Days, 10.6% maturing in 31-60 Days, 9.7% maturing in 61-90 Days, 13.6% maturing in 91-180 Days and 10.5% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (15.9%), Japan (15.0%), Canada (13.2%), the U.K. (13.1%), Australia (9.8%), the U.S. (9.7%), Singapore (3.1%), Finland (3.1%), the Netherlands (3.0%) and Spain (1.9%).
The 10 Largest Issuers to "offshore" GBP money funds include: UK Treasury with L13.9B (6.7%), BNP Paribas with L9.2B (4.4%), Toronto-Dominion Bank with L8.8B (4.3%), Sumitomo Mitsui Trust Bank with L8.6B (4.2%), JP Morgan with L7.4B (3.6%), Mizuho Corporate Bank Ltd with L7.0B (3.4%), National Australia Bank Ltd with L6.8B (3.3%), RBC with L6.7B (3.2%), Nordea Bank with L6.0B (2.9%) and Australia & New Zealand Banking Group Ltd with L5.9B (2.8%).
