The Investment Company Institute released its latest quarterly "Worldwide Mutual Fund Assets And Flows: Second Quarter 2011" last week, showing that while money funds globally experienced moderate outflows in mid 2011, six of the 15 largest markets showed asset increases. India, Ireland, and Australia showed sizeable inflows, while Mexico, Brazil and Switzerland also showed increases. Brazil surpassed Italy moving into the 8th largest spot, while the rest of the 10 largest markets remained the same.
ICI's release says, "Mutual fund assets worldwide increased 1.2 percent to $25.92 trillion at the end of the second quarter of 2011. Worldwide net cash flows into all funds rose to $106 billion in the second quarter, after posting $78 billion of net inflows in the first quarter of 2011. Flows into long-term funds rose modestly to $191 billion from $179 billion in the previous quarter. Equity funds worldwide had net inflows of $24 billion in the second quarter, down from $61 billion of net flows in the first quarter. Flows into bond funds were $100 billion in the second quarter, rising from $57 billion of net flows in the previous quarter. Flows out of money market funds slowed to $85 billion in the second quarter of 2011, after experiencing $101 billion of net outflows in the first quarter of 2011. The Investment Company Institute compiles worldwide statistics on behalf of the International Investment Funds Association, an organization of national mutual fund associations. The collection for the second quarter of 2011 contains statistics from 45 countries."
The ICI's release shows total Worldwide Money Market Fund assets fell $37.2 billion, or 0.7%, to $4.933 trillion from $4.970 trillion. It says, "Net outflows from money market funds slowed somewhat in the second quarter. Money market funds worldwide experienced $85 billion of net outflows in the second quarter of 2011, down from $101 billion of outflows in the first quarter of 2011. Money market funds in the Americas and in Europe experienced net outflows of $45 billion and $43 billion, respectively, in the second quarter after witnessing net inflows of $75 billion and $16 billion, respectively, in the previous quarter. In contrast, money market funds in the Asia and Pacific region posted net inflows of $5 billion in the second quarter, compared with $12 billion of net outflows in the first quarter." Money market funds account for 19% of all mutual fund assets worldwide, according to the release.
The ICI's full Worldwide tables shows that the United States remains by far the largest money fund market, with $2.686 trillion, or 54.5% of total worldwide assets. U.S. money fund assets declined by $41.2 billion in the second quarter. France remained the second largest money fund market with $531.9 billion, or 10.8% of assets, while Ireland remained the third largest market with $491.8 billion, or 10.0%. French money fund assets declined by $18.6 billion, or 3.4% in Q2, while Irish assets increased by $15.3 billion, or 3.2%. Luxembourg holds the fourth most money fund assets ($385.9 billion, or 7.8%), and Australia ranks fifth with $287.1 billion, or 5.8%. Note that Ireland and Luxembourg are the domiciles for most "offshore" or "IMMFA" money market funds, which are geared towards multinational corporations (as opposed to domestic investors). (These have similar guidelines to U.S. money funds, while some European money funds, like France, do not.)
Mexico ranked sixth among worldwide money market mutual fund markets with $64.4 billion, or 1.3%; Korea ranked seventh with $49.8 billion, or 1.0%; Brazil ranked eighth with $47.8 billion, or 1.0%; Italy ranked ninth with $46.1 billion, or 0.9%; and, South Africa ranked 10th with $40.9 billion, or 0.8%. The 11th through 25th largest money fund markets include: Canada ($33.8 billion), India ($31.9B), Japan ($26.2B), Switzerland ($25.8B), Taiwan ($24.0B), China ($18.4B), Norway ($18.4B), Finland ($15.2B), Chile ($14.7B), Sweden ($14.1B), Turkey ($14.1B), Germany ($12.0B), Spain ($10.6B), Hungary ($7.3B), and United Kingdom ($5.1B).
Note that the Investment Company Institute also recently announced the launch of ICI Global in a speech by President & CEO Paul Schott Stevens entitled, "A New Voice for Global Investment Funds." Stevens commented, "Over the past two decades, the world has witnessed the rise of asset managers as global financial intermediaries.... Against this backdrop, the Institute's Board of Governors has determined that our organization should significantly broaden its international engagement. ICI Global, an exciting new initiative just launched by the Investment Company Institute, is set to fill that role.... It will advance the interest and promote public understanding of global investment funds, their managers, and investors." (E-mail Pete to request our full Largest Money Market Mutual Fund Markets Worldwide Excel file, which was created using ICI's Worldwide tables, or to request our latest Money Fund Intelligence International, a daily XLS that tracks Dublin and Luxembourg-registered money funds.)
