Crane Data's latest MFI International shows total assets in "offshore" money market mutual funds, U.S.-style funds domiciled in Ireland or Luxemburg and denominated in USD, Euro and GBP (sterling), up year-to-date in 2018. Through 11/14/18, MFII assets are up $16 billion to $847 billion. Offshore USD money funds are up $22 billion YTD, continuing to defy predictions of repatriation-related outflows. Euro funds are still feeling the pain of negative rates and pending European MMF reforms; they're down E5 billion YTD. GBP funds are up L2B. U.S. Dollar (USD) money funds (159) account for over half ($447 billion, or 52.8%) of this "European" money fund total, while Euro (EUR) money funds (98) total E98 billion (11.0%) and Pound Sterling (GBP) funds (103) total L221 billion (26.0%). We summarize our "offshore" money fund assets, as well as our latest Money Fund Intelligence International Portfolio Holdings totals, below.
USD MMFs yield 2.09% (7-Day) on average (as of 11/14/18), up from 1.19% at the end of 2017 and 0.56% at the end of 2016. EUR MMFs yield -0.48 on average, up from -0.55% on 12/29/17 and -0.49% on 12/30/16, while GBP MMFs yield 0.62%, up from 0.24% at the end of 2017 and 0.19% at the end of 2016. (See our latest MFI International for more on the "offshore" money fund marketplace.)
Crane's latest MFI International Money Fund Portfolio Holdings, with data (as of 10/31/18), show that European-domiciled US Dollar MMFs, on average, consist of 28% in Commercial Paper (CP), 22% in Certificates of Deposit (CDs), 14% in Treasury securities, 20% in Repurchase Agreements (Repo), 14% in Other securities (primarily Time Deposits), and 2% in Government Agency securities. USD funds have on average 33.6% of their portfolios maturing Overnight, 11.2% maturing in 2-7 Days, 17.9% maturing in 8-30 Days, 11.1% maturing in 31-60 Days, 12.5% maturing in 61-90 Days, 10.8% maturing in 91-180 Days, and 2.9% maturing beyond 181 Days. USD holdings are affiliated with the following countries: US (24.5%), France (18.0%), Japan (10.2%), Canada (9.8%), United Kingdom (6.5%), Germany (5.0%), The Netherlands (4.8%), Sweden (4.6%), Australia (3.5%), China (2.8%), Singapore (2.5%), and Switzerland (2.2%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $68.4 billion (14.0% of total assets), BNP Paribas with $30.5B (6.3%), Credit Agricole with $18.2B (3.7%), Mitsubishi UFJ Financial Group Inc with $15.0B (3.1%), Wells Fargo with $14.3B (2.9%), Barclays PLC with $12.9B (2.6%), Toronto-Dominion Bank with $12.B (2.5%), Mizuho Corporate Bank Ltd with $11.1B (2.3%), Societe Generale with $10.7B (2.2%), and HSBC with $9.2B (1.9%).
Euro MMFs tracked by Crane Data contain, on average 46% in CP, 26% in CDs, 20% in Other (primarily Time Deposits), 6% in Repo, 1% in Agency securities, and 1% in Treasuries. EUR funds have on average 20.0% of their portfolios maturing Overnight, 11.7% maturing in 2-7 Days, 16.7% maturing in 8-30 Days, 13.1% maturing in 31-60 Days, 20.6% maturing in 61-90 Days, 14.6% maturing in 91-180 Days and 3.3% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (31.6%), Japan (15.2%), the US (9.4%), Sweden (6.7%), Netherlands (6.3%), Germany (6.1%), U.K. (5.0%), Belgium (4.0%), Switzerland (3.8%) and China (3.0%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E5.7B (6.4%), BNP Paribas with E4.2B (4.7%), Mizuho Corporate Bank Ltd with E3.5B (3.9%), ING Bank with E3.0B (3.4%), Sumitomo Mitsui Trust Bank with E2.9B (3.3%), Svenska Handelsbanken with E2.8B (3.1%), BPCE with E2.7B (3.0%), Societe Generale with E2.7B (3.0%), Credit Mutuel with E2.6B (2.9%), and Procter & Gamble Co with E2.6B (2.8%).
The GBP funds tracked by MFI International contain, on average (as of 10/31/18): 37% in CDs, 27% in Other (Time Deposits), 23% in CP, 9% in Repo, 4% in Treasury, and 0% in Agency. Sterling funds have on average 15.6% of their portfolios maturing Overnight, 14.5% maturing in 2-7 Days, 16.8% maturing in 8-30 Days, 10.0% maturing in 31-60 Days, 17.6% maturing in 61-90 Days, 20.7% maturing in 91-180 Days, and 4.% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (18.1%), Japan (15.4%), United Kingdom (15.4%), Netherlands (9.0%), Canada (8.1%), Germany (6.3%), Australia (5.4%), Sweden (5.1%), United States (4.6%), and Singapore (2.6%).
The 10 Largest Issuers to "offshore" GBP money funds include: UK Treasury with L13.4B (8.2%), Sumitomo Mitsui Banking Co with L5.9B (3.7%), Mizuho Corporate Bank Ltd with E5.6B (3.4%), Rabobank with E5.6B (3.4%), BNP Paribas with L5.5B (3.4%), BPCE SA with L5.5B (3.4%), Sumitomo Mitsui Trust Bank with L5.4B (3.3%), Toronto-Dominion Bank with L5.4B (3.3%), Nordea Bank with L5.1B (3.1%) and Credit Agricole L4.6B (2.8%),
In other news, ICI's weekly "Money Market Fund Assets" report shows MMF assets rising in the latest week, their 4th week in a row of strong gains. Government, Prime and Tax Exempt MMFs all increased. Overall assets are now up $70 billion, or 2.5%, YTD, and they've increased by $167 billion, or 6.1%, over 52 weeks. Retail MMFs, which broke above the $1.1 trillion level, have increased by $87 billion, or 8.6% YTD, while Inst MMFs, which broke above the $1.8 trillion level, have decreased $18 billion, or -1.0%. Over 52 weeks, Retail money funds have gained $118 billion, or 12.0%, while Inst money funds are up $49 billion, or 2.8%. We review the latest asset figures, and also give a preview of our pending Money Fund Portfolio Holdings data, below.
ICI writes, "Total money market fund assets increased by $12.31 billion to $2.92 trillion for the week ended Wednesday, November 14, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $10.79 billion and prime funds increased by $1.05 billion. Tax-exempt money market funds increased by $470 million." Total Government MMF assets, which include Treasury funds too, stand at $2.245 trillion (76.9% of all money funds), while Total Prime MMFs stand at $539.5 billion (18.5%). Tax Exempt MMFs total $135.9 billion, or 4.7%.
They explain, "Assets of retail money market funds decreased by $912 million to $1.10 trillion. Among retail funds, government money market fund assets decreased by $3.34 billion to $653.62 billion, prime money market fund assets increased by $1.76 billion to $318.18 billion, and tax-exempt fund assets increased by $672 million to $128.20 billion." Retail assets account for over a third of total assets, or 37.7%, and Government Retail assets make up 59.4% of all Retail MMFs.
ICI's release adds, "Assets of institutional money market funds increased by $13.23 billion to $1.82 trillion. Among institutional funds, government money market fund assets increased by $14.14 billion to $1.59 trillion, prime money market fund assets decreased by $709 million to $221.29 billion, and tax-exempt fund assets decreased by $202 million to $7.73 billion." Institutional assets account for 62.3% of all MMF assets, with Government Inst assets making up 87.4% of all Institutional MMFs.
