The Investment Company Institute released its "Worldwide Regulated Open-Fund Assets and Flows, Second Quarter 2018" Friday. The most recent data collection on mutual funds in other countries (as well as the U.S.) shows that money fund assets globally fell by $135.6 billion, or -2.2%, in Q2'18, led by big drops in Chinese and French money funds. Money funds in the US and India rose substantially. MMF assets worldwide have increased by $632.8 billion, or 11.9%, the past 12 months. We review the latest Worldwide Money Market Fund totals, below. (Watch for more on money funds outside the U.S. in our upcoming Money Fund Intelligence newsletter, and watch for coverage of Worldwide Bond Fund totals in the next issue of Bond Fund Intelligence.)
ICI's release says, "Worldwide regulated open-end fund assets decreased 1.2 percent to $49.39 trillion at the end of the second quarter of 2018, excluding funds of funds. Worldwide net cash inflow to all funds was $194 billion in the second quarter, compared with $584 billion of net inflows in the first quarter of 2018. 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 2018 contains statistics from 47 jurisdictions."
On the data series' conversion into U.S. dollars, it explains, "The growth rate of total regulated open-end fund assets reported in US dollars was decreased by US dollar appreciation over the second quarter of 2018. For example, on a US dollar–denominated basis, fund assets in Europe decreased by 2.8 percent in the second quarter, compared with an increase of 2.7 percent on a euro-denominated basis."
ICI continues, "On a US dollar–denominated basis, equity fund assets increased by 0.7 percent to $22.10 trillion at the end of the second quarter of 2018. Bond fund assets decreased by 2.9 percent to $10.25 trillion in the second quarter. Balanced/mixed fund assets decreased by 3.8 percent to $6.26 trillion in the second quarter, while money market fund assets decreased by 2.3 percent globally to $5.96 trillion."
The release writes, "At the end of the second quarter of 2018, 45 percent of worldwide regulated open-end fund assets were held in equity funds. The asset share of bond funds was 21 percent and the asset share of balanced/mixed funds was 13 percent. Money market fund assets represented 12 percent of the worldwide total."
It adds, "Net sales of regulated open-end funds worldwide were $194 billion in the second quarter of 2018.... Globally, bond funds posted an inflow of $71 billion in the second quarter of 2018, after recording an inflow of $147 billion in the first quarter.... Money market funds worldwide experienced an inflow of $36 billion in the second quarter of 2018 after registering an inflow of $14 billion in the first quarter of 2018."
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 Q2'18 with $2.821 trillion, or 47.3% of all global MMF assets. U.S. MMF assets increased by $27.6 billion (1.0%) in Q2'18 and increased by $187.1B (7.1%) in the 12 months through June 30, 2018. China remained in second place among countries overall, though assets declined sharply in the latest quarter. China saw assets decrease $73.9 billion (-6.0%) in Q2 to $1.165 trillion (19.5% of worldwide assets). But over the 12 months through June 30, 2018, Chinese MMF assets have risen by $412.3 billion, or 54.8%.
Ireland remained third among these country rankings, ending Q2 with $568.9 billion (9.5% of worldwide assets). Dublin-based MMFs were down $21.8B for the quarter, or -3.7%, but up $29.8B, or 5.5%, over the last 12 months. France remained in fourth place with $405.6 billion (6.8% of worldwide assets). Assets here decreased $39.7 billion, or -8.9%, in Q2, but were up $5.7 billion, or 1.4%, over one year. Luxembourg was in fifth place with $357.2B, or 6.0% of the total, down $20.0 billion in Q2 (-5.3%) and down $13.4B (-3.6%) over 12 months.
Japan remained in sixth place with $107.1 billion (1.8%); assets there dropped $1.0 billion (-0.9%) in Q2 and $4.8 billion (-4.3%) over 12 months. Korea, the 7th ranked country, saw MMF assets fall $5.2 billion, or -5.2%, in Q2 to $95.1 billion (1.6% of the world's total MMF assets); they fell $1.9 billion (-1.9%) for the year. Brazil remained in 8th place, as assets decreased $6.8 billion, or -8.4%, to $74.7 billion (1.3% of total assets) in Q2. They have decreased $6.9 billion (-8.4%) over the previous 12 months.
ICI's statistics show India in 9th place with $66.9B, or 1.1% of total, up $15.3B (29.6%) in Q2 and up $13.5B (25.2%) for the year. Mexico was in 10th place, decreasing $2.5 billion, or -4.3%, to $56.1 billion (0.9% of total assets) in Q2 and decreasing $311 million (-0.6%) over the previous 12 months. (Note that ICI's data no longer includes money fund figures for Australia. Australia's MMF assets, which had been one of the largest markets in the world, were mysteriously shifted into the "Other" category several years ago.)
The United Kingdom ($29.5B, down $206M and up $4.1B over the quarter and year, respectively) still ranks ahead of Chinese Tapei ($24.2B, down $4.6B and down $3.4B). Chile ($23.9B, down $1.6B and up $2.3B) moved ahead of South Africa ($22.2B, down $3.9B and down $913M), and both remain ahead of Switzerland ($22.4B, down $661M and down $1.4B). These countries ranked 11th through 15th, respectively. Sweden, Canada, Poland, Norway and Germany 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.
