The Investment Company Institute released its latest "Worldwide Mutual Fund Assets and Flows" data collection earlier this week. It shows that global money market mutual fund assets increased sharply in the Fourth Quarter of 2015, topping $5 trillion for the first time since 2009. The latest report says total worldwide money fund assets rose $229 billion, or 4.7%, to $5.072 trillion as of year-end 2015. Once again, most of the gains came from the second largest MMF country, China, which saw another huge jump in Q4 as investors fled the volatile stock market for the safety of money funds. The US, Ireland, Brazil and Belgium also gained significant assets in Q4. Globally, MMF assets increased by $192.2 billion, or 3.9%, in calendar year 2015. We review the ICI's Worldwide MMF totals, as well as Crane Data's latest MFI International asset totals and yields below.
ICI's latest quarterly release says, "Worldwide regulated open-end fund assets increased 2.9 percent to $37.19 trillion at the end of the fourth quarter of 2015, excluding funds of funds. The rise in worldwide fund assets predominately reflected positive equity performance, with equity fund assets rising by over $800 billion in the fourth quarter. Worldwide net cash flow to all funds was $576 billion in the fourth quarter, compared with $223 billion of net inflows in the third 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 fourth quarter of 2015 contains statistics from 45 countries."
It continues, "Bond fund assets decreased 0.9 percent to $7.83 trillion in the fourth quarter. Balanced/mixed fund assets rose 2.2 percent to $5.15 trillion in the fourth quarter. Money market fund assets rose 4.7 percent globally to $5.07 trillion, accounting for 22 percent of the quarterly increase in global mutual fund assets.... Money market funds worldwide experienced an inflow of $236 billion in the fourth quarter of 2015 after registering an inflow of $201 billion in the third quarter of 2015. The global inflow to money market funds in the fourth quarter was driven by inflows of $111 billion in the Asia-Pacific region, $86 billion in the Americas, and $38 billion in Europe.... Money market fund assets represented 14 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 Q4'15 with $2.755 trillion (or 51.8% of all global MMF assets). U.S. MMF assets increased by $86.5 billion in Q4'15 and by $29.5B in the 12 months through Dec. 31, 2015. China continues to gain market share, holding on to second place among countries overall. China saw assets grow a massive $107.1 billion (up 18.5%) in Q4 to $684.4 billion (12.7% of worldwide assets). Over the last 12 months through Dec. 31, 2015, Chinese MMF assets have doubled, up $348.2 billion, or 103.6%.
A Reuters article from January, entitled, "China stock investors seek haven in bond, money market funds," elaborates on the Q4 gains in MMF assets in China. It says, "China's recent stock market rout has further damped risk appetite of mainland investors, who have been seeking safe haven in bond and money market funds, and stepping up overseas investment amid yuan depreciation fears, latest data shows.... Latest monthly fund data shows investors are shifting money out of stocks into money market and bond funds. In December, assets in money market funds jumped 27.6 percent from a month earlier to 4.4 trillion yuan, while bond funds expanded 21.6 percent in size. That compares with a merely 1 percent rise in stock fund assets, despite a 4.6 percent monthly gain in the benchmark CSI300 index that month."
China is also in the process of adopting new money fund regulations. As Fitch Ratings detailed in a recent report, "New rules on money market funds published by the China Securities Regulatory Commission (CSRC) show some convergence with international standards, notably the introduction of liquidity requirements.... Nonetheless, the regulations still permit Chinese money funds more latitude in taking investment risk than European or US money funds."
Ireland remained third in the ICI rankings, ending Q4 with $508.9 billion (9.2% of worldwide assets), up $33.5B for the quarter, or 7.0%, and up $129.9B, or 34.3%, over the last 12 months <b:>`_. France remained in fourth place with $338.5 billion (6.3% of worldwide assets), down $11.2 billion, or 3.2%, in Q4, and down $10.7 billion, or 3.1%, over 1 year. Luxembourg moved up to fifth place with $322.3B, or 6.0% of the total (down $1.6 billion in Q4 and up $18.0B for 1 year). ICI's data no longer includes money fund figures for Australia, but they would rank as the sixth largest market at $322 billion, their level of two years ago. (Australia's MMF assets were shifted into the "Other" category several quarters ago, but we continue to list them in our version of the tables.)
Without Australia, Korea is the 6th ranked country. Its MMF assets fell $6.1 billion, or 7.1%, to $80.1 billion (1.5% of total) in Q4, but assets rose $3.8 billion (4.9%) for the year. Mexico was in 7th place, dropping $2.7 billion, or 4.8%, to $53.7 billion (1.0% of total assets) in Q4 and increasing $4.6 billion (9.5%) over the previous 12 months. ICI's latest Worldwide statistics show Brazil in 8th place with $51.3B, or 1.0% of total, up $17.8B (52.9%) in Q4 and up $6.5B (14.5%) for the year. India was in 9th place, jumping $8.0 billion, or 29.4%, to $35.2 billion (0.7% of total assets) in Q4 and increasing $6.9 billion (24.4%) over the previous 12 months. Finally, Taiwan was in 10th place with $30.7 billion in assets (0.6% of total), up $3.2B, or 11.5%, in Q4 and up $6.7 billion (28.1%) for the year.
Sweden ($21.1B, down $1.0B for the quarter and up $820M for the year), Switzerland ($19.3B, up $61M and down $377M), Belgium ($18.3B, up $12.5B and up $17.0 billion for the year), Canada ($18.2B, down $690M and down $3.1B), and Chile ($17.5B, up $3.7B and down $2.3B) ranked 11th through 15th, respectively. South Africa, Japan, United Kingdom, Germany, and Spain round out the 20 largest countries with 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. 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 shows assets in "offshore" money market mutual funds, U.S.-style funds domiciled in Dublin or Luxemburg and denominated in USD, Euro and GBP (sterling), down $4.5 billion to $694.6 billion year-to-date through 3/22/16. U.S. Dollar (USD) funds (156) tracked by Crane Data's MFII account for over half ($352.0 billion, or 50.7%) of the total, while Euro (EUR) money funds (98) total E77.8 billion and Pound Sterling (GBP) funds (108) total L172.5. USD funds are down $40.1 billion, or 10.2%, YTD, while Euro funds are up E2.3 billion, or 3.0%, and GBP funds are up L22.0 billion, or 14.6%.
Offshore USD MMFs have an average 7-Day Net Yield of 0.28% as of March 22, up 12 basis points YTD, and they average Charged Expenses of 0.18%. The average 7-Day Net Yield of EUR MMFs is -0.28%, down 10 basis points YTD, while the GBP MMF yields are averaging 0.41%, up 7 basis points on the year. Euro MMFs average expenses of 0.10% while Sterling MMFs average expenses of 0.17%. Crane Data tracks 156 USD MMFs, 98 Euro MMFs and 108 Sterling MMFs.
