Crane Data's latest MFI International shows assets in "offshore" or European money market mutual funds rising sharply in the latest month through August 13. These U.S.-style funds, domiciled in Ireland or Luxemburg and denominated in US Dollars, Sterling and Euro, increased by $34.4 billion to $868.8 billion over the past month, and they're now up by $22.9 billion year-to-date. Offshore USD money funds rose $13.3 billion the past month and they're up $9.9 billion YTD. Euro funds surged E8.3 billion to break into the black YTD, up E0.3 billion. GBP funds jumped by L9.0 billion from July 12 through August 13, are they are up by L14.6 billion YTD. U.S. Dollar (USD) money funds (175) account for over half ($463.8 billion, or 53.4%) of our "European" money fund total, while Euro (EUR) money funds (78) total E99.3 billion (11.4%) and Pound Sterling (GBP) funds (103) total L224.0 billion (25.8%). We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers yesterday), below.
Offshore USD MMFs yield 2.05% (7-Day) on average (as of 8/13/19), down from 2.29% on 12/31/18, but up from 1.19% at the end of 2017. EUR MMFs yield -0.51 on average, compared to -0.49% at year-end 2018 and -0.55% on 12/29/17. Meanwhile, GBP MMFs yielded 0.64%, the same as 0.64% on 12/31/18 but up from 0.24% at the end of 2017. (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 7/31/19), show that European-domiciled US Dollar MMFs, on average, consist of 28% in Commercial Paper (CP), 26% in Repurchase Agreements (Repo), 21% in Certificates of Deposit (CDs), 13% in Other securities (primarily Time Deposits), 11% in Treasury securities and 1% in Government Agency securities. USD funds have on average 41.1% of their portfolios maturing Overnight, 9.4% maturing in 2-7 Days, 14.0% maturing in 8-30 Days, 8.9% maturing in 31-60 Days, 9.9% maturing in 61-90 Days, 12.5% maturing in 91-180 Days and 4.2% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (23.8%), France (14.6%), Canada (12.4%), Japan (10.7%), the United Kingdom (9.4%), Germany (7.2%), the Netherlands (3.8%), Sweden (3.8%), Australia (3.0%), China (2.7%), Switzerland (2.4%), Singapore (1.9%), Norway (1.2%) and Belgium (0.7%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $57.8 billion (11.4% of total assets), Barclays PLC with $21.8B (4.3%), BNP Paribas with $18.3B (3.6%), Bank of Nova Scotia with $15.9B (3.1%), Mitsubishi UFJ Financial Group Inc with $15.6B (3.1%), Wells Fargo with $14.5B (2.9%), Toronto-Dominion Bank with $14.1B (2.8%), RBC with $13.8B (2.7%), Sumitomo Mitsui Banking Co with $12.4B (2.4%) and Standard Chartered Bank with $11.9B (2.4%).
Euro MMFs tracked by Crane Data contain, on average 48% in CP, 20% in CDs, 22% in Other (primarily Time Deposits), 8% in Repo, 1% in Agency securities and 1% in Treasuries. EUR funds have on average 25.7% of their portfolios maturing Overnight, 7.5% maturing in 2-7 Days, 14.5% maturing in 8-30 Days, 16.9% maturing in 31-60 Days, 16.0% maturing in 61-90 Days, 16.1% maturing in 91-180 Days and 3.3% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (28.6%), Japan (15.0%), the US (10.6%), Germany (10.3%), Sweden (7.0%), the U.K. (6.3%), the Netherlands (4.8%), China (3.3%), Belgium (2.7%), Switzerland (2.7%), Canada (1.7%), Finland (1.7%) and Austria (1.6%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E6.2B (6.6%), BNP Paribas with E5.2B (5.6%), Mizuho Corporate Bank Ltd with E4.3B (4.6%), Mitsubishi UFJ Financial Group Inc with E3.4B (3.6%), Svenska Handelsbanken with E3.3B (3.6%), BPCE SA with E3.1B (3.3%), Citi with E2.9B (3.1%), Procter & Gamble Co with E2.8B (3.0%), Nordea Bank with E2.6B (2.8%) and DekaBank Deutsche Girozentrale with E2.5B (2.7%).
The GBP funds tracked by MFI International contain, on average (as of 7/31/19): 35% in CDs, 24% in Other (Time Deposits), 23% in CP, 13% in Repo, 4% in Treasury and 1% in Agency. Sterling funds have on average 26.1% of their portfolios maturing Overnight, 9.5% maturing in 2-7 Days, 11.5% maturing in 8-30 Days, 13.0% maturing in 31-60 Days, 16.1% maturing in 61-90 Days, 18.4% maturing in 91-180 Days and 5.4% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (19.1%), the United Kingdom (18.0%), Japan (16.3%), Canada (10.0%), Germany (5.7%), the Netherlands (5.1%), Sweden (4.9%), United States (3.7%), Singapore (3.1%), Australia (2.6%), China (2.2%) and Abu Dhabi (2.1%).
The 10 Largest Issuers to "offshore" GBP money funds include: the UK Treasury with L15.6B (9.9%), Credit Agricole with L7.8B (4.9%), Mizuho Corporate Bank Ltd with L6.7B (4.2%), Sumitomo Mitsui Banking Co with L6.3B (4.0%), BCPE SA with L6.0B (3.8%), BNP Paribas with L5.1B (3.3%), Mitsubishi UFJ Financial Group Inc with L4.9B (3.1%), Nordea Bank with L4.8B (3.1%), Sumitomo Mitsui Trust Bank with L4.7B (3.0%) and Toronto-Dominion Bank with L4.6B (2.9%).
In related news, U.K. website Citywire posted the piece, "BlackRock launches ESG money market fund range." They explain, "BlackRock has launched a new money market Ucits fund range BlackRock Institutional Cash (ICS) LEAF. Three new LEAF funds provide investors with same-day access to liquidity in sterling, euro and US dollar and invest in securities of entities that meet the funds' ESG criteria. BlackRock will commit 5% of the net revenue from management fees from the ICS LEAF series to purchase and subsequently retire carbon offsets." (See our July 22 News, "`BlackRock Launches First Offshore ESG MMF; ICS LEAF in EUR, GBP, USD.")
They quote BlackRock's Head of International Cash Management Peter Loehnert, "Sustainable investing is about smart investing and recognising that companies seeking to solve the world's biggest challenges may be best positioned to grow. This launch provides greater choice to investors wishing to align their financial and ESG goals, and complements our ongoing efforts to integrate sustainability-related insights and data into our investment platform."
Finally, we wanted to remind readers once more about the 7th Annual Crane's European Money Fund Symposium, which will take place Sept. 23-24 at The Hilton Dublin in Dublin, Ireland. The latest agenda is available and registrations are still being taken for the largest money market fund gathering in Europe. More details are below, and feel free to contact us for more information. We hope to see you in Dublin next month!
EMFS will be held at the The Hilton Dublin. Hotel rooms must be booked before Monday, August 21 to receive the discounted rate of E295. Registration for our 2019 Crane's European Money Fund Symposium is $1,000 USD. Visit www.euromfs.com to register, or contact us to request the PDF brochure or for Sponsorship pricing and info.
