Fitch's Q2 Global MMF Dashboard
Fitch Ratings published "Global Money Market Fund Flows Dashboard: 2Q22" recently, which tells us, "Fitch Ratings estimates that U.S., European and Chinese money market fund (MMF) assets under management (AUM) fell to USD8.1 trillion at end-2Q22 from USD8.2 trillion at end-1Q22, based on Lipper data. The US accounted for 55% of total global assets with China at 18% and Europe at 17% at the end of the quarter, all measured in US dollars.... Total AUM in US MMFs ended the quarter at USD5.0 trillion, decreasing by less than 1%. US government MMF assets were down 3%. However, prime, tax-free, treasury MMFs AUM increased by 4%, 18% and 1%, respectively. Inflows to prime (USD32 billion), tax-free (USD 17 billion) and treasury (USD10 billion) MMFs offset a significant portion of the net outflows from government (USD95 billion) MMFs. Government, prime, treasury and tax-free MMFs represented 56%, 17%, 25% and 2% of US MMF AUM, respectively, at end-2Q22." The brief continues, "European MMFs' AUM increased by less than 1% to EUR1.46 trillion from EUR1.45 trillion. We estimate that short-term MMFs were the main contributors, with a 1% rise in AUM in 2Q22. Fitch estimates that short-term and standard MMFs represented respectively 32% and 68% of total MMF AUM at end-2Q22. When measured in base currency, sterling-denominated MMF AUM fell 8% in 2Q22, while euro-denominated MMFs decreased by 3%. US dollar MMFs AUM grew by 2%. Euro-, sterling- and US dollar-denominated MMFs represented around 95% of total MMF AUM in Europe at end-2Q22." Finally, Fitch adds, "Chinese MMFs' total assets increased by 5% with flows totalling CNY406 billion. Assets in China totalled CNY10.6 trillion at end-2Q22, meaning that the country overtook Europe to become the world's second-largest MMF market for the first time." (Note: To learn more on European and Chinese money funds, please join us at our upcoming European Money Fund Symposium, Sept. 27-28 in Paris, France!)
