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 and Euro down sharply year-to-date, though Sterling MMFs have seen increases. Through 4/11/19, overall MFII assets are down $21.4 billion to $824.5 billion. (They rose $15.2 billion in 2018.) Offshore USD money funds are down $15.2 billion YTD (they rose $28.8B last year). Euro funds are still feeling the pain of negative rates and recent European MMF reforms; they're down E10.1 billion YTD (following 2 flat years). GBP funds are up, however, by L8.8billion. U.S. Dollar (USD) money funds (174) account for over half ($438.8 billion, or 53.2%) of this "European" money fund total, while Euro (EUR) money funds (79) total E88.9 billion (10.8%) and Pound Sterling (GBP) funds (102) total L218.3 billion (26.5%). We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers Friday), below.
Offshore USD MMFs yield 2.34% (7-Day) on average (as of 4/11/19), up from 2.29% on 12/31/18, 1.19% at the end of 2017 and 0.56% at the end of 2016. EUR MMFs yield -0.50 on average, compared to -0.49% at year-end 2018, -0.55% on 12/29/17 and -0.49% on 12/30/16. Meanwhile, GBP MMFs yielded 0.68%, up from 0.64% on 12/31/18, 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. Note that these funds are only available to qualified, non-U.S. investors.)
Crane's MFII Portfolio Holdings, with data (as of 3/31/19), show that European-domiciled US Dollar MMFs, on average, consist of 28% in Commercial Paper (CP), 18% in Repurchase Agreements (Repo), 23% in Certificates of Deposit (CDs), 11% in Other securities (primarily Time Deposits), 18% in Treasury securities and 2% in Government Agency securities. USD funds have on average 33.9% of their portfolios maturing Overnight, 10.0% maturing in 2-7 Days, 22.9% maturing in 8-30 Days, 11.2% maturing in 31-60 Days, 9.5% maturing in 61-90 Days, 10.3% maturing in 91-180 Days and 2.3% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (29.2%), France (12.7%), Japan (11.6%), Canada (10.9%), Germany (6.2%), the United Kingdom (6.2%), the Netherlands (5.0%), Sweden (3.6%), Australia (2.9%), Switzerland (2.9%), Singapore (2.9%), China (1.9%), Belgium (1.8%), and Norway (1.4%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $83.2 billion (17.5% of total assets), BNP Paribas with $18.5B (3.9%), Wells Fargo with $17.2B (3.6%), Mitsubishi UFJ Financial Group Inc with $17.2B (3.6%), Barclays PLC with $13.8B (2.9%), Mizuho Corporate Bank Ltd with $13.0B (2.7%), Bank of Nova Scotia with $12.8B (2.7%), Toronto-Dominion Bank with $10.8B (2.3%), RBC with $10.4B (2.2%) and Sumitomo Mitsui Banking Co with $9.0B (1.9%).
Euro MMFs tracked by Crane Data contain, on average 47% in CP, 24% in CDs, 18% in Other (primarily Time Deposits), 10% in Repo, 1% in Agency securities and 0% in Treasuries. EUR funds have on average 27.8% of their portfolios maturing Overnight, 9.8% maturing in 2-7 Days, 16.0% maturing in 8-30 Days, 13.6% maturing in 31-60 Days, 13.0% maturing in 61-90 Days, 18.0% maturing in 91-180 Days and 1.8% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (29.0%), Japan (13.1%), the US (10.5%), Germany (10.2%), Sweden (6.9%), the Netherlands (4.8%), Canada (4.2%), the U.K. (3.9%), Supranational (3.0%), China (2.3%), Finland (2.2%), Belgium (2.2%) and Switzerland (2.1%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E4.5B (5.4%), BNP Paribas with E4.3B (5.1%), Mitsubishi UFJ Financial Group with E3.1B (3.7%), BPCE SA with E3.1B (3.7%), Mizuho Corporate Bank Ltd with E3.1B (3.6%), Svenska Handelsbanken with E2.6B (3.1%), European Investment Bank with E2.5B (2.9%), Citi with E2.4B (2.9%), Procter & Gamble Co. with E2.4B (2.9%) and Credit Mutuel with E2.4B (2.8%).
The GBP funds tracked by MFI International contain, on average (as of 3/31/19): 25% in CDs, 36% in Other (Time Deposits), 23% in CP, 11% in Repo, 4% in Treasury and 1% in Agency. Sterling funds have on average 26.2% of their portfolios maturing Overnight, 9.2% maturing in 2-7 Days, 19.4% maturing in 8-30 Days, 12.1% maturing in 31-60 Days, 12.8% maturing in 61-90 Days, 15.3% maturing in 91-180 Days and 5.0% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: the United Kingdom (19.1%), France (15.4%), Japan (14.9%), Canada (9.4%), Germany (7.7%), the Netherlands (5.9%), Australia (5.4%), the United States (4.6%), Sweden (3.6%), Singapore (3.1%), China (2.5%) and Abu Dhabi (1.9%).
The 10 Largest Issuers to "offshore" GBP money funds include: UK Treasury with L15.0B (9.2%), Mizuho Corporate Bank Ltd with L7.1B (4.3%), Standard Chartered Bank with L5.9B (3.6%), Mitsubishi UFJ Financial Group with L5.7B (3.5%), BNP Paribas with L5.5B (3.3%), Credit Agricole with L5.1B (3.1%), Sumitomo Mitsui Banking Co with L5.0B (3.1%), BPCE SA with L4.7B (2.9%), Toronto-Dominion Bank with L4.6B (2.8%) and Sumitomo Mitsui Trust Bank with L4.4B (2.7%).
In related news, Crane Data continues to make plans for our 7th annual European Money Fund Symposium, which will be held Sept. 23-24, 2019, in Dublin, Ireland. (See the latest agenda here.) Our last "offshore" money fund event in London attracted a record 140 attendees, sponsors and speakers, and we expect our next Dublin show to once again be the largest money fund event in Europe. Let us know if you're interested in any sponsorship or speaking opportunities, or if you have any feedback or questions.
European Money Fund Symposium offers "offshore" money fund portfolio managers, and money market investors, issuers, dealers and service providers a concentrated and affordable educational experience, as well as an excellent and informal networking venue. Our mission is to deliver the best possible conference content at an affordable price to money market fund professionals. Attendee registration for our 2019 Crane's European Money Fund Symposium is $1,000 (USD).
Finally, there's just over 2 months to go until our big show, Crane's Money Fund Symposium, which is June 24-26, 2019, at the Renaissance Boston. If you plan on attending, register soon and make your hotel reservations asap, and let us know if you'd like to learn more about any of our other events.
