The Investment Company Institute published a release, "Worldwide Regulated Open-Fund Assets and Flows, Third Quarter 2020," which shows that money fund assets globally fell by $92.0 billion, or -1.1%, in Q3'20 to $8.068 trillion. The decrease was driven by a big drop in U.S. money funds, as the massive cash buildup in early 2020 was spent down. MMF assets worldwide have increased by $1.442 trillion, or 21.8%, the past 12 months, and money funds in the U.S. now represent 54.6% 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 during the third quarter of 2020 by 5.6 percent to $56.91 trillion at the end of the quarter, excluding funds of funds. Worldwide net cash inflow to all funds was $292 billion in the third quarter, compared with $910 billion of net inflows in the second quarter of 2020. The Investment Company Institute compiles worldwide regulated open-end fund statistics on behalf of the International Investment Funds Association (IIFA), the organization of national fund associations. The collection for the third quarter of 2020 contains statistics from 46 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 third quarter of 2020. For example, on a US dollar–denominated basis, fund assets in Europe increased by 7.4 percent in the third quarter, compared with an increase of 2.7 percent on a euro-denominated basis."
ICI's quarterly continues, "On a US dollar–denominated basis, equity fund assets increased by 7.6 percent to $24.59 trillion at the end of the third quarter of 2020. Bond fund assets increased by 5.1 percent to $12.22 trillion in the third quarter. Balanced/mixed fund assets increased by 7.7 percent to $6.99 trillion in the third quarter.... Money market fund assets decreased by 1.1 percent globally to $8.07 trillion."
The release also tells us, "At the end of the third quarter of 2020, 43 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 14 percent of the worldwide total."
ICI adds, "Net sales of regulated open-end funds worldwide were $292 billion in the third quarter of 2020. Flows out of equity funds worldwide were $31 billion in the third quarter, after experiencing $2 billion of net outflows in the second quarter of 2020. Globally, bond funds posted an inflow of $325 billion in the third quarter of 2020, after recording an inflow of $307 billion in the second quarter.... Money market funds worldwide experienced an outflow of $196 billion in the third quarter of 2020 after registering an inflow of $486 billion in the second quarter of 2020."
According to Crane Data's analysis of ICI's "Worldwide" fund data, the U.S. sustained its position as the largest money fund market in Q3'20 with $4.404 trillion, or 60.3% of all global MMF assets. U.S. MMF assets decreased by $230.3 billion (-5.0%) in Q3'20 and increased by $963.2 billion (28.0%) in the 12 months through Sept. 30, 2020. China remained in second place among countries overall. China saw assets flat, up just $2.1 billion (0.2%) in Q3, to $1.074 trillion (13.3% of worldwide assets). Over the 12 months through Sept. 30, 2020, Chinese MMF assets have risen by $83.7 billion, or 8.5%.
Ireland remained third among country rankings, ending Q3 with $688.1 billion (8.5% of worldwide assets). Dublin-based MMFs were up $14.3B for the quarter, or 2.1%, and up $88.3B, or 14.7%, over the last 12 months. Luxembourg remained in fourth place with $517.2 billion (6.4% of worldwide assets). Assets there increased $36.0 billion, or 7.5%, in Q3, and were up $126.1 billion, or 32.2%, over one year. France was in fifth place with $427.4B, or 5.3% of the total, up $67.8 billion in Q3 (18.9%) and up $59.0B (16.0%) over 12 months.
Australia was listed in sixth place with $273.6 billion, or 3.4% of worldwide assets. Its MMFs decreased by $700 million, or -0.3%, in Q3. Japan was in seventh place with $117.8 billion (1.5%); assets there rose $3.8 billion (3.3%) in Q3 and increased by $13.3 billion (12.7%) over 12 months. Korea, the 8th ranked country, saw MMF assets increase $3.3 billion, or 2.9%, in Q3'20 to $116.1 billion (1.4% of the world's total MMF assets); they've risen $29.8 billion (34.5%) for the year. Brazil was in 9th place, assets increased $9.4 billion, or 11.6%, to $90.4 billion (1.1% of total assets) in Q3. They've increased $9.5 billion (11.7%) over the previous 12 months. ICI's statistics show Mexico in 10th place with $60.2B, or 0.7% of total assets, up $1.7B (2.9%) in Q3 and down $4.9 million (-7.5%) for the year.
India was in 11th place, decreasing $5.4 billion, or -8.2%, to $59.9 billion (0.7% of total assets) in Q3 and decreasing $3.9 billion (-6.1%) over the previous 12 months. Chinese Taipei ($33.5B, up $3.2B and up $8.7B over the quarter and year, respectively) ranked 12th ahead of the Canada ($32.8B, up $966M and up $8.2B). The U.K. ($27.9B, up $878M and up $1.7B) and South Africa ($25.5B up $1.2B and up $1.4B), rank 13th through 15th, respectively. Chili, Switzerland, Norway, Argentina 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 $4.625 trillion, down $217.7 billion in Q3. Asian MMFs increased by $7.1 billion to $1.686 trillion, and Europe saw its money funds increase by $117.5 billion in Q3'20 to $1.732 trillion. Africa saw its money funds increase $1.2B to $25.5 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 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.
