The Investment Company Institute released its "Worldwide Regulated Open-Fund Assets and Flows, Third Quarter 2018" yesterday. The most recent data collection on mutual funds in other countries (as well as the U.S.) shows that money fund assets globally rose by $16.9 billion, or 0.3%, in Q3'18, led by big gains in U.S. and Chinese money funds. Money fund assets in the Ireland, India, France and Korea fell. MMF assets worldwide have increased by $260.1 billion, or 4.5%, the past 12 months, and money funds in Asia surpassed money funds in Europe for the first time ever. We review the latest Worldwide Money Market Fund totals, below.
ICI's release says, "Worldwide regulated open-end fund assets increased 1.3 percent to $50.09 trillion at the end of the third quarter of 2018, excluding funds of funds. Worldwide net cash inflow to all funds was $178 billion in the third quarter, compared with $197 billion of net inflows in the second 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 third 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 reduced by US dollar appreciation over the third quarter of 2018. For example, on a US dollar-denominated basis, fund assets in Europe decreased by 0.6 percent in the third quarter, compared with an increase of 0.2 percent on a euro-denominated basis."
ICI continues, "On a US dollar-denominated basis, equity fund assets increased by 2.8 percent to $22.73 trillion at the end of the third quarter of 2018. Bond fund assets were essentially unchanged at $10.25 trillion in the third quarter. Balanced/mixed fund assets increased by 0.1 percent to $6.26 trillion in the third quarter, while money market fund assets increased by 0.3 percent globally to $5.98 trillion."
The release writes, "At the end of the third quarter of 2018, 45 percent of worldwide regulated open-end fund assets were held in equity funds. The asset share of bond funds was 20 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 $178 billion in the third quarter of 2018. Flows into equity funds worldwide were $91 billion in the third quarter, after experiencing $25 billion of net inflows in the second quarter of 2018. Globally, bond funds posted an inflow of $91 billion in the third quarter of 2018, after recording an inflow of $72 billion in the second quarter..... Money market funds worldwide experienced an outflow of $53 billion in the third quarter of 2018 after registering an inflow of $36 billion in the second 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 Q3'18 with $2.864 trillion, or 47.9% of all global MMF assets. U.S. MMF assets increased by $43.0 billion (1.5%) in Q3'18 and increased by $115.8B (4.2%) in the 12 months through Sept. 30, 2018. China remained in second place among countries overall, as assets rebounded from the prior quarter in the latest quarter. China saw assets increase $37.0 billion (3.2%) in Q3 to $1.202 trillion (20.1% of worldwide assets). Over the 12 months through Sept. 30, 2018, Chinese MMF assets have risen by $253.5 billion, or 26.7%.
Ireland remained third among these country rankings, ending Q3 with $555.4 billion (9.3% of worldwide assets). Dublin-based MMFs were down $13.6B for the quarter, or -2.4%, and down $5.0B, or -0.9%, over the last 12 months. France remained in fourth place with $393.4 billion (6.6% of worldwide assets). Assets here decreased $12.2 billion, or -3.0%, in Q2, and were down $40.7 billion, or -9.4%, over one year. Luxembourg was in fifth place with $360.0B, or 6.0% of the total, up $2.7 billion in Q3 (0.8%) and down $24.8B (-6.4%) over 12 months.
Japan remained in sixth place with $103.3 billion (1.7%); assets there dropped $3.7 billion (-3.5%) in Q3 and $6.4 billion (-5.8%) over 12 months. Korea, the 7th ranked country, saw MMF assets fall $12.1 billion, or -12.8%, in Q3 to $83.0 billion (1.4% of the world's total MMF assets); they've fallen $11.1 billion (-11.8%) for the year. Brazil remained in 8th place, as assets decreased $3.4 billion, or -4.5%, to $71.3 billion (1.2% of total assets) in Q3. They have decreased $12.1 billion (-14.5%) over the previous 12 months.
ICI's statistics show Mexico moving up to 9th place with $61.3B, or 1.0% of total, up $5.2B (9.3%) in Q3 and up $1.4B (2.4%) for the year. India fell to 10th place, decreasing $12.4 billion, or -18.6%, to $54.5 billion (0.9% of total assets) in Q3 and increasing $14 million (0.0%) 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 ($26.9B, down $2.5B and up $7M over the quarter and year, respectively) still ranks ahead of Chinese Tapei ($23.8B, down $366M and down $2.0B) in 11th and 12th place. South Africa ($23.5B, up $1.2B and up $234M), Canada ($20.6B, up $459M and up $750M), and Switzerland ($20.5B, down $955M and down $3.6B) rank 13th through 15th, respectively. Sweden, Chile (which fell from the top 15), Poland, Norway and Germany round out the 20 largest countries with money market mutual funds.
ICI's quarterly series shows money fund assets in the Americas total $3.001 trillion, up $39.6 billion in Q3, while Asia and Pacific money funds surpassed Europe money funds for the first time, rising $8.2 billion to $1.474 trillion. Europe saw its money funds decline by $32.1 billion in Q3'18 to $1.441 trillion, while Africa saw its money funds rise $1.2 billion to $23.5 billion.
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.
