The Investment Company Institute's latest "Worldwide Regulated Open-Fund Assets and Flows, Fourth Quarter 2019" release shows that money fund assets globally rose by $311.2 billion, or 4.7%, in Q4'19 to a record $6.937 trillion. The increase was driven by big gains in U.S.-based money funds, and increases in Ireland-, China- and Luxembourg-based money funds. MMF assets worldwide have increased by $860.7 billion, or 14.2%, the past 12 months, and money funds in the U.S. now represent 52.4% of worldwide assets. We review the latest Worldwide MMF totals, below. (Note: Let us know if you'd like to see our latest Money Fund Intelligence International product, which tracks "offshore" money market funds domiciled in Europe and outside the U.S.)
ICI's release says, "Worldwide regulated open-end fund assets increased 6.4 percent to $54.88 trillion at the end of the fourth quarter of 2019, excluding funds of funds. Worldwide net cash inflow to all funds was $836 billion in the fourth quarter, compared with $675 billion of net inflows in the third quarter of 2019. 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 fourth quarter of 2019 contains statistics from 47 jurisdictions."
It explains, "The growth rate of total regulated open-end fund assets reported in US dollars was increased by US dollar depreciation over the fourth quarter of 2019. For example, on a US dollar-denominated basis, fund assets in Europe increased by 6.5 percent in the fourth quarter, compared with an increase of 3.3. percent on a euro-denominated basis."
ICI's quarterly continues, "On a US dollar–denominated basis, equity fund assets increased by 8.3 percent to $24.51 trillion at the end of the fourth quarter of 2019. Bond fund assets increased by 3.6 percent to $11.80 trillion in the fourth quarter. Balanced/mixed fund assets increased by 5.9 percent to $6.84 trillion in the fourth quarter, while money market fund assets increased by 4.8 percent globally to $6.94 trillion."
The release also says, "At the end of the fourth quarter of 2019, 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 12 percent. Money market fund assets represented 13 percent of the worldwide total."
ICI adds, "Net sales of regulated open-end funds worldwide were $836 billion in the fourth quarter of 2019. Flows into equity funds worldwide were $143 billion in the fourth quarter, after experiencing $3 billion of net outflows in the third quarter of 2019. Globally, bond funds posted an inflow of $257 billion in the fourth quarter of 2019, after recording an inflow of $271 billion in the third quarter.... Money market funds worldwide experienced an inflow of $287 billion in the fourth quarter of 2019 after registering an inflow of $311 billion in the third quarter of 2019."
According to Crane Data's analysis of ICI's "Worldwide" fund data, the U.S. strengthened its position as the largest money fund market in Q419 with $3.632 trillion, or 52.4% of all global MMF assets. U.S. MMF assets increased by $191.0 billion (5.6%) in Q4'19 and increased by $595.0B (19.6%) in the 12 months through Dec. 31, 2019. China remained in second place among countries overall, despite assets declining over the past 12 months. China saw assets increase $31.9 billion (3.2%) in Q4, passing $1.0 trillion again after last quarter's decline, to $1.022 trillion (14.7% of worldwide assets). Over the 12 months through Dec. 31, 2019, Chinese MMF assets have fallen by $88.0 billion, or -7.9%.
Ireland remained third among country rankings, ending Q4 with $632.3 billion (9.1% of worldwide assets). Dublin-based MMFs were up $32.5B for the quarter, or 5.4%, and up $73.6B, or 13.2%, over the last 12 months. Luxembourg remained in fourth place with $408.1 billion (5.9% of worldwide assets). Assets there increased $17.0 billion, or 4.4%, in Q4, and were up $24.7 billion, or 6.4%, over one year. France was in fifth place with $352.3B, or 5.1% of the total, down $16.0 billion in Q4 (-4.4%) and down $21.4B (-5.7%) over 12 months.
Australia was listed in sixth place with $243.1 billion, or 3.5% of worldwide assets. Its MMFs increased by $8.0 billion, or 3.4% in Q4. Note that ICI's data includes this footnote for Australia: "Due to a reclassification, a portion of the assets from the 'other' category have been moved into the money market and real estate categories." Australia's MMF assets were mysteriously shifted into the "Other" category several years ago but just reappeared last quarter. Japan was in seventh place with $116.2 billion (1.7%); assets there rose $11.7 billion (11.2%) in Q4 and increased by $16.0 billion (16.0%) over 12 months.
Korea, the 8th ranked country, saw MMF assets increase $5.0 billion, or 5.8%, in Q4'19 to $91.3 billion (1.3% of the world's total MMF assets); they've risen $10.7 billion (13.3%) for the year. Brazil was in 9th place, as assets increased $3.5 billion, or 4.3%, to $84.4 billion (1.2% of total assets) in Q4. They've increased $7.9 billion (10.2%) over the previous 12 months. ICI's statistics show India increased to 10th place with $69.7B, or 1.0% of total, up $5.8B (9.1%) in Q4 and up $6.1 (9.6%) for the year. Mexico was in 11th place, increasing $680 million, or 1.0%, to $65.8 billion (0.9% of total assets) in Q4 and increasing $7.2 billion (12.2%) over the previous 12 months.
The United Kingdom ($28.6, up $2.4B and up $3.4B over the quarter and year, respectively) ranked 12th ahead of Chili ($27.6B, up $9.4B and up $6.2B). Canada ($27.0B, up $2.4B and up $5.4B) and Chinese Taipei ($26.7 up $1.9B and up $4.1M), rank 13th through 15th, respectively. South Africa, Switzerland, Norway, Germany and Belgium round out the 20 largest countries with money market mutual funds.
ICI's quarterly series shows money fund assets in the Americas total $3.845 trillion, up $208.3 billion in Q4. Asian MMFs increased by $65.1 billion to $1.577 trillion, while Europe saw its money funds increase by $36.9 billion in Q4'19 to $1.490 trillion. Africa saw its money funds increase $943M to $25.0 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 mainly domestic money fund offerings. Contact us if you'd like our latest "Largest Money Market Funds Markets Worldwide" spreadsheet, based on ICI's data.
