The Investment Company Institute, the mutual fund industry's trade association, released its latest "Worldwide Mutual Fund Assets and Flows" data collection, which shows that global money market mutual fund assets increased in the Second Quarter of 2015. The latest report says total worldwide money fund assets rose $31 billion to $4.580 trillion. (When Australia's approximately $322.1 billion is included, total Worldwide money fund assets stand at $4.903 trillion.) Ireland solidified its spot as the second largest MMF market with a huge jump, while China and Luxembourg also gained assets in Q2. Globally, MMF assets increased by $107.5 billion, or 2.2%, over the past year (through 6/30/15). In other international money fund news, the Institutional Money Market Funds Association hired a new Secretary General, Jane Lowe. (Note: We've shifted the dates slightly for next year's European Money Fund Symposium, which will now be held Sept. 20-21, 2016, in London.)
ICI's latest quarterly release says, "Worldwide regulated open-end fund assets increased 2.2 percent to $38.27 trillion at the end of the second quarter of 2015, excluding funds of funds. Worldwide net cash flow to all funds was $588 billion in the second quarter, compared to $562 billion of net inflows in the first quarter of 2015. The Investment Company Institute compiles worldwide open-end fund statistics on behalf of the International Investment Funds Association, the organization of national fund associations. The collection for the second quarter of 2015 contains statistics from 46 countries."
It continues, "Bond fund assets increased 1.0 percent to $8.21 trillion in the second quarter. Balanced/mixed fund assets rose 7.4 percent to $5.41 trillion in the second quarter accounting for 45 percent of the quarterly increase in global mutual fund assets. Money market fund assets rose 0.7 percent globally."
ICI's quarterly adds, "Money market funds worldwide experienced an outflow of $22 billion in the second quarter of 2015 after registering an outflow of $11 billion in the first quarter of 2015. The global outflow from money market funds in the second quarter was driven by outflows of $30 billion in the Americas and $36 billion in Europe that were partially offset by inflows of $44 billion in the Asia-Pacific region.... Money market fund assets represented 12 percent of the worldwide total."
According to Crane Data's analysis of ICI's "Worldwide" fund data, the U.S. maintained its position as the largest money fund market in Q2'15 with $2.616 trillion (or 53.4% of all global MMF assets). U.S. MMF assets decreased by $26.6 billion in Q2'15, but were up by $55.4B in the 12 months through June 30, 2015. Ireland remained the second largest money market fund country, ending Q2 with $450.0 billion (9.2% of worldwide assets), up $66.8B for the quarter, or 17.4%, and up $57.2B, or 14.6%, over the last 12 months. China continues to gain market share, maintaining third place among countries overall. China saw assets grow $39.7 billion (up 11.4%) in Q2 to $388.9 billion (7.9% of worldwide assets). Over the last 12 months through June 30, 2015, Chinese MMF assets up are $132.1 billion, or 51.5%.
France remained in fourth place with $335.2 billion (6.8% of worldwide assets), up $6.5 billion in Q2, but down $84.1 billion, or 20.0%, over 1 year. Australia was in 5th place worldwide with $322.1 billion (6.6%). (Note that ICI's data didn't include money fund figures for Australia again this quarter. We continue to estimate these at $322 billion, the same amount as it had in Q4 2014 when ICI stopped reporting them. Australia's MMF assets were shifted into the "Other" category several quarters ago but there's been no explanation from Australia's fund association on why.)
Luxembourg remained in 6th place with $316.9B, or 6.5% of the total (up $18.7 billion in Q2 and up $9.4B for 1 year). Korea, the 7th ranked country, jumped $3.3 billion to $95.6 billion (1.9% of total) in Q2 and is $22.2 billion (30.3%) for the year. Mexico held on to 8th place, climbing $849 million to $59.8 billion (1.2% of total assets) in Q2 and $3.6 billion (6.4%) over the previous 12 months. ICI's latest Worldwide statistics also show Brazil ($44.0B, up $2.4B and down $13.7B on the quarter and year, respectively) in 9th place. India, with $32.5 billion in assets, rounds out the top 10. India was a big gainer in 2Q, rising $6.5B, or 25%. For the one year period through June 30, 2015, India's MMF assets were down $3.4B.
Taiwan ($26.5B, up $1.3B for the quarter and down $712M for the year), Sweden ($21.2B, up $2.7B and down $126M), South Africa ($20.6B, up $893M and down $4.8B), Switzerland ($20.0B, up $932M and up $2.3B), and Canada ($19.5B, up $288M and down $4.8B) ranked 11th through 15th, respectively. Japan, Finland, Chile, United Kingdom, and Germany round out the 20 largest countries that have money market mutual funds.
Note that 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 our latest "Largest Money Market Funds Markets Worldwide" spreadsheet, based on ICI's data, or if you'd like to see our MFI International product.
Crane Data's Money Fund Intelligence International, which tracks the "offshore" or international money fund market (mainly domiciled in Dublin and Luxembourg), shows assets down $71.6 billion year-to-date through Sept. 30, 2015, to $683.1 billion. USD-denominated money funds are down $13.5 billion YTD to $383.7B. GBP-denominated MMFs are down L6.0 billion to L146.4B, while Euro-denominated money funds are down E13.2 billion to E77.5 billion.
As referenced in the lead, IMMFA appointed a new Secretary General, Jane Lowe, effective Nov. 9, 2015. She replaces Susan Hindle-Barone, who stepped down in September after 3 years in that role, and was previously with the Investment Association (formerly known as the Investment Management Association) The press release says, "Lowe will lead and manage the day-to-day business of IMMFA. Her focus will be to represent the Association, members and the industry, to promote the understanding of money market funds, as well as their usefulness to investors and the money markets as a whole. Jane joins at an important time for the European Money Market Fund industry as the dialogue around the potential of European Money Market Reform continues. Engaging and working with European legislators and regulators will therefore also be a facet of the role."
IMMFA Chairman Reyer Kooy comments, "Jane brings with her a valuable and highly relevant skill-set to the Association, combining financial services and regulatory experience along with a strong understanding of industry association governance. Her lobbying expertise in both EU and UK contexts at the highest levels of government will enhance IMMFA advocacy initiatives."
