The Investment Company Institute's latest "Worldwide Regulated Open-Fund Assets and Flows, Second Quarter 2020" release shows that money fund assets globally rose by $472.5 billion, or 6.1%, in Q2'20 to a record $8.160 trillion. The increase was driven by big gains in U.S. and European money funds. MMF assets worldwide have increased by $1.968 trillion, or 31.8%, the past 12 months, and money funds in the U.S. now represent 63.0% 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. Note too: The recording of yesterday's Bond Fund Webinar: Ultra-Short & Alt-Cash is available here. Thanks to our excellent speakers and thanks for attending!)
ICI's release says, "Worldwide regulated open-end fund assets increased 12.4 percent to $53.87 trillion at the end of the second quarter of 2020, excluding funds of funds. Worldwide net sales to all funds was $899 billion in the second quarter, compared with $691 billion of net inflows in the first quarter of 2020. The Investment Company Institute compiles worldwide regulated open-end fund statistics on behalf of the International Investment Funds Association (IIFA), the international organization of national fund associations. The collection for the first quarter of 2020 contains statistics from 46 jurisdictions."
It explains, "Assets in regulated open-end funds reported in US dollars increased in the second quarter of 2020 in part because of US dollar depreciation. For example, on a US dollar–denominated basis, fund assets in Europe increased 11.7 percent in the second quarter, compared with a increase of 9.3 percent on a euro-denominated basis."
ICI's quarterly continues, "On a US dollar–denominated basis, equity fund assets increased by 19.1 percent to $22.86 trillion at the end of the second quarter of 2020. Bond fund assets rose by 7.5 percent to $11.63 trillion in the second quarter. Balanced/mixed fund assets increased by 10.7 percent to $6.48 trillion in the second quarter.... Money market fund assets rose by 6.1 percent globally to $8.16 trillion."
The release also tells us, "At the end of the second quarter of 2020, 42 percent of worldwide regulated open-end fund assets were held in equity funds. The asset share of bond funds was 22 percent and the asset share of balanced/mixed funds was 12 percent. Money market fund assets represented 15 percent of the worldwide total."
ICI adds, "Net sales of regulated open-end funds worldwide were $899 billion in the second quarter of 2020. Flows out of equity funds worldwide were $2 billion in the second quarter, after experiencing $19 billion of net outflows in the first quarter of 2020. Globally, bond funds posted an inflow of $306 billion in the second quarter of 2020, after recording an outflow of $229 billion in the first quarter.... Money market funds worldwide experienced an inflow of $486 billion in the second quarter of 2020 after registering an inflow of $915 billion in the first quarter of 2020."
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 Q2'20 with $4.635 trillion, or 60.3% of all global MMF assets. U.S. MMF assets increased by $297.1 billion (6.9%) in Q2'20 and increased by $1.433 trillion (44.8%) in the 12 months through June 30, 2020. China remained in second place among countries overall. China saw assets decrease $87.7 billion (-7.6%) in Q2, to $1.072 trillion (13.9% of worldwide assets). Over the 12 months through June 30, 2020, Chinese MMF assets have risen by $11.5 billion, or 1.1%.
Ireland remained third among country rankings, ending Q2 with $673.7 billion (8.8% of worldwide assets). Dublin-based MMFs were up $58.2B for the quarter, or 9.5%, and up $115.0B, or 20.6%, over the last 12 months. Luxembourg remained in fourth place with $481.2 billion (6.3% of worldwide assets). Assets there increased $73.2 billion, or 17.9%, in Q2, and were up $96.3 billion, or 25.0%, over one year. France was in fifth place with $359.6B, or 4.7% of the total, up $30.1 billion in Q2 (9.1%) and down $11.6B (-3.1%) over 12 months.
Australia was listed in sixth place with $274.3 billion, or 3.6% of worldwide assets. Its MMFs increased by $36.3 billion, or 15.3%, in Q2. 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 reappeared several quarters ago. Japan was in seventh place with $114.0 billion (1.5%); assets there rose $3.7 billion (3.3%) in Q2 and increased by $11.3 billion (11.0%) over 12 months.
Korea, the 8th ranked country, saw MMF assets increase $13.7 billion, or 13.8%, in Q2'20 to $112.9 billion (1.5% of the world's total MMF assets); they've risen $22.4 billion (24.8%) for the year. Brazil was in 9th place, assets increased $4.9 billion, or 6.4%, to $81.0 billion (1.1% of total assets) in Q2. They've decreased $3.0 billion (-3.5%) over the previous 12 months. ICI's statistics show India in 10th place with $65.3B, or 0.8% of total assets, up $13.5B (26.0%) in Q2 and down $962 million (-1.5%) for the year. Mexico was in 11th place, increasing $3.9 billion, or 7.1%, to $58.5 billion (0.8% of total assets) in Q2 and decreasing $7.6 billion (-11.4%) over the previous 12 months.
Canada ($31.9, up $2.1B and up $8.8B over the quarter and year, respectively) ranked 12th ahead of the Chinese Taipei ($30.3B, up $4.6B and up $6.7B). The U.K. ($27.0B, down $1.6B and up $985B) and South Africa ($24.4B up $3.5B and down $459M), rank 13th through 15th, respectively. Chili, Switzerland, Belgium, Norway and Argentina round out the 20 largest countries with money market mutual funds.
ICI's quarterly series shows money fund assets in the Americas total $4.843 trillion, up $311.9 billion in Q2. Asian MMFs decreased by $14.9 billion to $1.678 trillion, while Europe saw its money funds increase by $172.0 billion in Q2'20 to $1.614 trillion. Africa saw its money funds increase $3.5B to $24.4 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.
