The Investment Company Institute released its latest "Worldwide Mutual Fund Assets and Flows" data collection recently. The latest report shows that total global money fund assets declined by $67.1 billion, or 1.3%, to $4.996 trillion in Q2 2016. The U.S., China and Luxembourg suffered the biggest declines, while France, Korea and Brazil saw gains. Worldwide MMF assets have increased by $136.0 billion, or 2.8%, over the previous 12 months through 6/30/16. We review the latest Worldwide MMF totals below, and we also discuss Crane Data's latest MFI International statistics below. (Thanks to those who participated and supported Crane's European Money Fund Symposium in London this week! Watch for coverage of some sessions in next week's News.)
ICI's release says, "Worldwide regulated open-end fund assets increased 1.2 percent to $39.29 trillion at the end of the second quarter of 2016, excluding funds of funds. Worldwide net cash inflow to all funds was $210 billion in the second quarter, compared with $145 billion of net inflows in the first quarter of 2016. 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 2016 contains statistics from 46 countries."
It continues, "On a US dollar–denominated basis, equity fund assets increased by 0.8 percent to $16.30 trillion at the end of the second quarter of 2016. Bond fund assets increased by 3.8 percent to $8.81 trillion in the second quarter. Balanced/mixed fund assets increased by 1.3 percent to $5.30 trillion in the second quarter, while money market fund assets decreased by 1.3 percent globally to $5.00 trillion."
ICI explains, "At the end of the second quarter of 2016, 41 percent of worldwide regulated open-end fund assets were held in equity funds. The asset share of bond funds was 22 percent and the asset share of balanced/mixed funds was 13 percent. Money market fund assets represented 13 percent of the worldwide total."
The release adds, "Globally, bond funds posted an inflow of $146 billion in the second quarter of 2016, after recording an inflow of $80 billion in the first quarter.... Money market funds worldwide experienced an outflow of $13 billion in the second quarter of 2016 after registering an outflow of $42 billion in the first quarter of 2016."
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 Q2'16 with $2.692 trillion (or 54.3% of all global MMF assets). U.S. MMF assets decreased by $62.6 billion in Q2'16 and increased by $46.8B in the 12 months through June 30, 2016. China remained in second place among countries overall despite another drop in assets. China saw assets fall $52.5 billion (down 7.7%) in Q2 to $631.9 billion (12.6% of worldwide assets), its first declines since late 2010. However, over the last 12 months through June 30, 2016, Chinese MMF assets have grown an astounding $282.7 billion, or 81.0%.
Ireland remained third among these country rankings, ending Q2 with $510.3 billion (10.2% of worldwide assets). Dublin-based MMFs were up $1.4B for the quarter, or 0.3%, but up $127.1B, or 33.2%, over the last 12 months. France remained in fourth place with $360.0 billion (7.2% of worldwide assets). Assets here jumped $21.4 billion, or 6.3%, in Q2, and were up $31.2 billion, or 9.5%, over one year. (ICI's data no longer includes money fund figures for Australia, but they would rank as the fifth largest market at $322 billion, their level of two years ago, if they were still included. Australia's MMF assets were shifted into the "Other" category several quarters ago.)
Luxembourg was in fifth place with $313.0B, or 6.3% of the total, down $9.4 billion in Q2 (-2.9%) and up $14.8B (4.9%) for 1 year. Korea, the 6th ranked country, saw MMF assets jump $13.3 billion, or 16.6%, to $93.3 billion (1.9% of total) in Q2 and rise $1.0 billion (1.1%) for the year. Brazil remained in 7th place, increasing $19.5 billion, or 37.9%, to $70.8 billion (1.4% of total assets) in Q2. It increased $29.2 billion (70.2%) over the previous 12 months.
ICI's statistics show Mexico in 8th place with $55.4B, or 1.1% of total, up $1.7B (3.2%) in Q2 and down $3.5B (6.0%) for the year. India was in 9th place, increasing $937 million, or 2.7%, to $36.2 billion (0.7% of total assets) in Q2 and increasing $10.1 billion (39.0%) over the previous 12 months. Taiwan was in 10th place with $29.7 billion, or 0.6% of worldwide assets.
Sweden ($21.4B, up $309M for the quarter and up $3.0B for the year), Switzerland ($20.2B, up $970M and up $1.1B), South Africa ($18.7B, up $1.9B and down $976M), Canada ($18.6B, up $368M and down $666M), and Belgium ($16.1B, down $2.2B and up $14.4 billion for the year) ranked 11th through 15th, respectively. Chile, Norway, Spain, Japan and Germany round out the 20 largest countries with money market mutual funds. South Africa moved ahead of Canada and Belgium in the latest rankings.
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), up $33.7 billion year-to-date to $732.7 billion as of 9/21/16. U.S. Dollar (USD) funds tracked by MFII account for over half ($369.2 billion, or 50.4%) of the total, while Euro (EUR) money funds total E86.2 billion and Pound Sterling (GBP) funds total L184.8. USD funds are down $22.9 billion, or 6.2%, YTD, while Euro funds are up E10.8 billion, or 12.5%, and GBP funds are up L34.2 billion, or 18.5%.
Offshore USD MMFs have an average 7-Day Net Yield of 0.39% as of Sept. 20, up 23 basis points YTD. The average 7-Day Net Yield of EUR MMFs is -0.42%, down 24 basis points YTD, while the GBP MMF yields are averaging 0.26%, down 8 basis points on the year. Crane Data tracks 156 USD MMFs, 97 Euro MMFs and 107 Sterling MMFs.
