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 $1.307 trillion, while yields were mostly flat. Assets for EUR, GBP and USD MMFs rose over the past month. 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 $15.3 billion over the 30 days through 8/13. The totals are up $109.8 billion (9.2%) 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.)
Offshore US Dollar money funds increased $4.5 billion over the last 30 days and are up $39.5 billion YTD to $689.1 billion; they increased $100.0 billion in 2023. Euro funds increased E4.4 billion over the past month. YTD, they're up E40.1 billion to E275.0 billion, for 2023, they increased by E54.5 billion. GBP money funds increased L4.8 billion over 30 days, and they're up L19.3 billion YTD at L254.7B, 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 Wednesday), below.
Offshore USD MMFs yield 5.22 (7-Day) on average (as of 8/13/24), down one basis point 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, which left negative yield territory in the second half of 2022, yield 3.63% on average, down 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 above the 5.0% barrier 12 months ago broke back below 5.0% last month; they now yield 4.98%, down 15 bps from a month ago, but 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 7/31/24, show that European-domiciled US Dollar MMFs, on average, consist of 24% in Commercial Paper (CP), 16% in Certificates of Deposit (CDs), 22% in Repo, 25% in Treasury securities, 12% in Other securities (primarily Time Deposits) and 1% in Government Agency securities. USD funds have on average 43.8% of their portfolios maturing Overnight, 5.5% maturing in 2-7 Days, 9.7% maturing in 8-30 Days, 8.7% maturing in 31-60 Days, 9.0% maturing in 61-90 Days, 15.9% maturing in 91-180 Days and 7.3% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (39.1%), France (12.1%), Japan (9.1%), Canada (8.7%), the U.K. (4.7%), Australia (4.2%), the Netherlands (3.8%), Sweden (3.4%), Finland (2.6%) and Germany (2.2%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $169.4 billion (24.7% of total assets), Credit Agricole with $21.3B (3.1%), Fixed Income Clearing Corp with $20.7B (3.0%), BNP Paribas with $18.2B (2.7%), Barclays with $17.3B (2.5%), Nordea Bank with $16.5B (2.4%), Toronto-Dominion Bank with $16.1B (2.4%), JP Morgan with $15.9B (2.3%), Mizuho Corporate Bank with $15.4B (2.3%), and Bank of America with $14.4B (2.1%).
Euro MMFs tracked by Crane Data contain, on average 43% in CP, 22% in CDs, 15% in Other (primarily Time Deposits), 18% in Repo, 2% in Treasuries and 0% in Agency securities. EUR funds have on average 37.0% of their portfolios maturing Overnight, 9.3% maturing in 2-7 Days, 12.0% maturing in 8-30 Days, 12.3% maturing in 31-60 Days, 10.0% maturing in 61-90 Days, 12.6% maturing in 91-180 Days and 6.7% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (31.3%), Japan (12.0%), the U.S. (10.0%), Germany (7.0%), Canada (6.1%), the U.K. (4.8%), Austria (4.6%), the Netherlands (4.3%), Australia (3.9%) and Sweden (3.5%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E15.1B (6.3%), BNP Paribas with E11.4B (4.8%), Republic of France with E11.2B (4.6%), JP Morgan with E9.5B (4.0%), Credit Mutuel with E8.6B (3.6%), DZ Bank AG with E8.3B (3.4%), Societe Generale with E8.2B (3.4%), Erste Group Bank AG with E7.3B (3.0%), Mitsubishi UFJ Financial Group Inc with E6.8B (2.8%) and Agence Central de Organismes de Securite Sociale with E6.6B (2.7%).
The GBP funds tracked by MFI International contain, on average (as of 7/31/24 ): 41% in CDs, 15% in CP, 22% in Other (Time Deposits), 18% in Repo, 4% in Treasury and 0% in Agency. Sterling funds have on average 37.1% of their portfolios maturing Overnight, 8.2% maturing in 2-7 Days, 9.1% maturing in 8-30 Days, 10.2% maturing in 31-60 Days, 10.0% maturing in 61-90 Days, 16.3% maturing in 91-180 Days and 9.2% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (15.4%), Japan (15.3%), the U.K. (13.9%), Canada (12.1%), Australia (10.4%), the U.S. (10.1%), the Netherlands (3.4%), Singapore (3.2%), Finland (2.9%), and Spain (2.3%).
The 10 Largest Issuers to "offshore" GBP money funds include: UK Treasury with L15.9B (6.8%), BNP Paribas with L11.2B (4.8%), Sumitomo Mitsui Trust Bank with L9.8B (4.2%), Toronto-Dominion Bank with L9.4B (4.0%), JP Morgan with L8.6B (3.7%), National Australia Bank Ltd with L8.4B (3.6%), Commonwealth Bank of Australia with L7.3B (3.1%), RBC with L7.2B (3.1%), BPCE with L6.6B (2.8%) and Mitsubishi UFJ Financial Group Inc with L6.5B (2.8%).
