The Investment Company Institute published, "Worldwide Regulated Open-Fund Assets and Flows, Fourth Quarter 2020," which shows that money fund assets globally rose by $246.3 billion, or 3.1%, in Q4'20 to $8.314 trillion. The increase was driven by big jumps in Chinese, Irish and French money market fund assets, though U.S. MMFs declined. MMF assets worldwide increased by $1.689 trillion, or 25.5%, in the 12 months through 12/31/20, and money funds in the U.S. now represent 52.1% of worldwide assets. We review the latest Worldwide MMF totals, below. (Note: Please join us later this week for Crane's Bond Fund Symposium (Online), which takes place the afternoons (1-4pmET) of March 25-26. Registration is $250 and "comp" tickets are available to sponsors and clients. Contact us or click here to register or for more info.)
ICI's release says, "Worldwide regulated open-end fund assets increased 10.8 percent to $63.06 trillion at the end of the fourth quarter of 2020, excluding funds of funds. Worldwide net cash inflow to all funds was $743 billion in the fourth quarter, compared with $291 billion of net inflows in the third 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 fourth 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 fourth quarter of 2020. For example, on a US dollar–denominated basis, fund assets in Europe increased by 11.9 percent in the fourth quarter, compared with an increase of 6.8 percent on a euro-denominated basis."
ICI's quarterly continues, "On a US dollar–denominated basis, equity fund assets increased by 15.3 percent to $28.34 trillion at the end of the fourth quarter of 2020. Bond fund assets increased by 6.8 percent to $13.05 trillion in the fourth quarter. Balanced/mixed fund assets increased by 11.6 percent to $7.80 trillion in the fourth quarter.... Money market fund assets increased by 3.1 percent globally to $8.31 trillion."
The release also tells us, "At the end of the fourth quarter of 2020, 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 $743 billion in the fourth quarter of 2020. Flows out of equity funds worldwide were $191 billion in the fourth quarter, after experiencing $31 billion of net outflows in the third quarter of 2020. Globally, bond funds posted an inflow of $326 billion in the fourth quarter of 2020, after recording an inflow of $325 billion in the third quarter.... Money market funds worldwide experienced an inflow of $90 billion in the fourth quarter of 2020 after registering an outflow of $196 billion in the third 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 Q4'20 with $4.333 trillion, or 52.1% of all global MMF assets. U.S. MMF assets decreased by $70.9 billion (-1.6%) in Q4'20 but increased by a huge $892.3 billion (25.9%) in the 12 months through Dec. 31, 2020. China remained in second place among countries overall. China saw assets increase $159.7 billion (14.9%) in Q4, to $1.234 trillion (14.8% of worldwide assets). Over the 12 months through Dec. 31, 2020, Chinese MMF assets have risen by $243.4 billion, or 24.6%.
Ireland remained third among country rankings, ending Q4 with $755.9 billion (9.1% of worldwide assets). Dublin-based MMFs were up $67.8B for the quarter, or 9.9%, and up $156.1B, or 26.0%, over the last 12 months. Luxembourg remained in fourth place with $508.6 billion (6.1% of worldwide assets). Assets there decreased $8.6 billion, or -1.7%, in Q4, and were up $117.5 billion, or 30.0%, over one year. France was in fifth place with $481.4B, or 5.8% of the total, up $54.1 billion in Q4 (12.7%) and up $113.0B (30.7%) over 12 months.
Australia was listed in sixth place with $275.3 billion, or 3.3% of worldwide assets. Its MMFs increased by $1.7 million, or 0.6%, in Q4. Japan was in seventh place with $132.3 billion (1.6%); assets there rose $14.5 billion (12.3%) in Q4 and increased by $27.8 billion (26.6%) over 12 months. Korea, the 8th ranked country, saw MMF assets increase $94 million, or 0.1%, in Q4'20 to $116.2 billion (1.4% of the world's total MMF assets); they've risen $29.9 billion (34.7%) for the year. Brazil was in 9th place, assets increased $2.1 billion, or 2.3%, to $92.5 billion (1.1% of total assets) in Q4. They've increased $11.6 billion (14.3%) over the previous 12 months. ICI's statistics show Mexico in 10th place with $64.3B, or 0.8% of total assets, up $4.2B (6.9%) in Q4 and down $753 million (-1.2%) for the year.
India was in 11th place, increasing $4.3 billion, or 7.1%, to $64.2 billion (0.8% of total assets) in Q4 and increasing $343 million (0.5%) over the previous 12 months. Chinese Taipei ($36.6B, up $3.0B and up $11.7B over the quarter and year, respectively) ranked 12th ahead of Chile ($33.3B, up $9.2B and up $15.1B). Canada ($32.7B, down $114M and up $8.1B) and South Africa ($29.8B up $4.3B and up $5.7B), rank 13th through 15th, respectively. The U.K., Switzerland, Norway, Argentina and Germany round out the 20 largest countries with money market mutual funds.
ICI's quarterly series shows money fund assets in the Americas total $4.570 trillion, down $55.5 billion in Q4. Asian MMFs increased by $184.5 billion to $1.870 trillion, and Europe saw its money funds increase by $184.5 billion in Q4'20 to $1.845 trillion. Africa saw its money funds increase $4.3B to $29.8 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. (Let us know too 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.)
