Earlier this week, the Investment Company Institute released its latest data on "Worldwide Mutual Fund Assets and Flows (Third Quarter 2013," which shows that money market mutual fund assets rebounded strongly in Q3 2013. (ICI began publishing their Worldwide statistics in 2004.) The latest data show worldwide money market mutual fund assets rising by $197.9 billion, led by large increases in U.S., Australian, and Chinese MMFs, in Q3'13, and by $53.7 billion over the past year (through 9/30/13) to $4.692 trillion. Crane Data excerpts from ICI's release and analyzes the money fund portion of the ICI's latest global statistics, and we also quote from an ICI Global statement on the FSB's issuance of a "consultation on Global SIFIs below.
ICI's latest Worldwide release says, "Mutual fund assets worldwide increased 5.2 percent to $28.87 trillion, an all-time high, at the end of the third quarter of 2013. Worldwide net cash flow to all funds was $208 billion in the third quarter, compared to $115 billion of net inflows in the second quarter of 2013. Flows into long-term funds decreased to $100 billion in the third quarter from an inflow of $213 billion in the previous quarter. Equity funds worldwide had net inflows of $81 billion in the third quarter, up from $45 billion of net inflows in the second quarter. Outflows from bond funds totaled $49 billion in the third quarter, the first outflow recorded since the fourth quarter of 2008, and down from net inflows of $54 billion in the second quarter. Inflows into money market funds were $108 billion in the third quarter of 2013, reversing the $99 billion outflow recorded in the second quarter of 2013."
The quarterly statement adds, "The Investment Company Institute compiles worldwide statistics on behalf of the International Investment Funds Association, an organization of national mutual fund associations <b:>`_. The collection for the third quarter of 2013 contains statistics from 44 countries."
ICI continues, "Money market funds worldwide experienced a net inflow of $108 billion in the third quarter of 2013 after recording a net outflow of $99 billion in the second quarter of 2013. The global inflow from money market funds in the third quarter was driven by inflows of $91 billion in the Americas and $28 billion in the Asia and Pacific region. Money market funds in Europe registered outflows of $12 billion in the third quarter."
According to Crane Data's analysis of ICI's data, the U.S. maintained its position as the largest money fund market in Q3'13 with $2.681 trillion (down to 57.1% of all worldwide MMF assets); assets increased by $95.1 billion in Q3'13 (they were up by $129.2B in the past year). France remained a distant No. 2 (though it rebounded in Q3) to the U.S. with $442.6 billion (9.4%, up $10.2 billion in Q3, down $38.4B over 1 year and down a shocking $250.6 billion since the end of 2009). This was followed by Ireland ($362.9 billion, or 7.7% of total assets, up $15B in Q3 and down $22.3B over 12 months). Australia rose to 4th place in the latest quarter with a jump of $48.2 billion in the quarter and $2.4B in the past year to $344.4B (7.3%), while Luxembourg fell to 5th place, ($321.6B, 6.9% of the total, down $2.4B in Q3 and down $31.0B for 1 year).
China, which saw assets jump ($79.9B, up $30.4B in Q3 and up $22.7 billion in 12 months, moved ahead of Korea ($68.9B, up $7.7B and up $9.2B on the quarter and year, respectively), Mexico ($55.9B, down $1.1B and down $139M), and Brazil ($50.8B, up $294M and up $6.3B), into sixth place. Canada rounded out the 10 largest countries with money funds (moving ahead of Taiwan and India). Ireland and Luxembourg's totals are primarily "offshore" money funds marketed to global multinationals, while most of the other countries in the survey have primarily domestic money fund offerings. (Crane Data believes that some of these countries, like France and Italy, do not have true "money market funds" due to their lack of strict guidelines and "accumulating" NAVs instead of stable NAVs. Contact us if you'd like a copy of our "Largest Money Market Funds Markets Worldwide" spreadsheet based on ICI's data.)
In other news, a statement entitled, "ICI and ICI Global Respond to Financial Stability Board's Consultation on Global Systemically Important Financial Institutions," explains, "Today, Dan Waters, Managing Director of ICI Global, and Karrie McMillan, General Counsel of the Investment Company Institute, made the following statement about the Financial Stability Board's (FSB) issuance of a consultation on Global Systemically Important Financial Institutions (G-SIFIs): "As the FSB's consultative document recognises, asset managers act as agents on behalf of investment funds and other clients. Unlike banks and insurance companies, asset managers do not invest on a principal basis and do not take on balance sheet risk. Thus, a fund's portfolio results -- whether positive or negative -- belong solely to the fund's shareholders, and do not flow through to any other fund, to the asset manager, or to the financial markets at large. ICI and ICI Global continue to maintain that, as a result of their structure, operations, and regulation, regulated funds and their managers have not been and are highly unlikely to be a source of systemic risk."
