Crane Data's latest Money Fund Intelligence International shows that assets in European or "offshore" money market mutual funds jumped over the past month to $973.6 billion led by US dollar funds. But European MMF assets remain below their record high of $1.101 trillion in mid-December 2021. These U.S.-style money funds, domiciled in Ireland or Luxembourg but denominated in US Dollars, Pound Sterling and Euros, increased by $9.5 billion over the 30 days through 9/14. (Note that the increase in the U.S. dollar has caused Euro and Sterling totals to decline when they're translated back into dollars.) The totals are down $89.4 billion (-8.4%) year-to-date. (Note: For more on "offshore" money funds, join us for our upcoming European Money Fund Symposium, Sept. 27-28, in Paris, France.)
Offshore US Dollar money funds are up $23.6 billion over the last 30 days and are up $20.2 billion YTD to $554.7 billion. Euro funds dropped E3.8 billion over the past month. YTD, they're down E9.1 billion to E149.3 billion. GBP money funds decreased L8.4 billion over 30 days; they are down by L30.2 billion YTD to L216.9B. U.S. Dollar (USD) money funds (202) account for nearly half (47.4%) of the "European" money fund total, while Euro (EUR) money funds (94) make up 22.1% and Pound Sterling (GBP) funds (130) total 30.5%. We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers Thursday), below.
Offshore USD MMFs yield 2.20% (7-Day) on average (as of 9/14/22), up from 2.05% a month earlier. Yields averaged 0.03% on 12/31/21, 0.05% on 12/31/20, 1.59% on 12/31/19 and 2.29% on 12/31/18. EUR MMFs are poised to leave negative yield territory within a matter of days; they're yielding -0.03% on average, up from -0.80% on 12/31/21. They averaged -0.71% at year-end 2020, -0.59% at year-end 2019 and -0.49% at year-end 2018. Meanwhile, GBP MMFs yielded 1.64%, up 18 bps from a month ago, and up from 0.01% on 12/31/21. Sterling yields were 0.00% on 12/31/20, 0.64% on 12/31/19 and 0.64% on 12/31/18. (See our latest MFI International for more on the "offshore" money fund marketplace. Note that these funds are only available to qualified, non-U.S. investors.)
Crane's September MFII Portfolio Holdings, with data as of 8/31/22, show that European-domiciled US Dollar MMFs, on average, consist of 22% in Commercial Paper (CP), 16% in Certificates of Deposit (CDs), 28% in Repo, 14% in Treasury securities, 19% in Other securities (primarily Time Deposits) and 1% in Government Agency securities. USD funds have on average 60.7% of their portfolios maturing Overnight, 4.6% maturing in 2-7 Days, 12.2% maturing in 8-30 Days, 6.1% maturing in 31-60 Days, 7.3% maturing in 61-90 Days, 6.9% maturing in 91-180 Days and 2.1% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (28.2%), France (15.4%), Canada (12.9%), Japan (11.3%), Sweden (7.1%), the Netherlands (4.5%), the U.K. (4.1%), Australia (3.7%), Germany (2.5%) and Singapore (1.6%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $76.9 billion (13.6% of total assets), RBC with $30.7B (5.4%), Credit Agricole with $25.2B (4.5%), Sumitomo Mitsui Banking Corp with $22.4B (4.0%), BNP Paribas with $21.8B (3.9%), Federal Reserve Bank of New York with $20.0B (3.5%), Fixed Income Clearing Corp with $16.0B (2.8%), Barclays with $14.7B (2.6%), Mizuho Corporate Bank Ltd with $14.5B (2.6%) and Skandinaviska Enskilda Banken AB with $14.3B (2.5%).
Euro MMFs tracked by Crane Data contain, on average 40% in CP, 19% in CDs, 28% in Other (primarily Time Deposits), 11% in Repo, 1% in Treasuries and 1% in Agency securities. EUR funds have on average 40.6% of their portfolios maturing Overnight, 11.8% maturing in 2-7 Days, 21.5% maturing in 8-30 Days, 7.9% maturing in 31-60 Days, 7.0% maturing in 61-90 Days, 9.1% maturing in 91-180 Days and 2.3% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (33.1%), Japan (13.4%), the U.S. (7.7%), Sweden (6.1%), Germany (5.9%), the U.K. (5.6%), Canada (5.4%), Austria (4.6%), Switzerland (3.5%) and Belgium (3.4%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E7.8B (5.5%), BNP Paribas with E7.3B (5.2%), Societe Generale with E6.2B (4.4%), Credit Mutuel with E5.2B (3.7%), Mitsubishi UFJ Financial Group Inc with E4.5B (3.2%), Natixis with E4.4B (3.1%), Sumitomo Mitsui Banking Corp with E4.3B (3.0%), DZ Bank AG with E4.1B (2.9%), Mizuho Corporate Bank Ltd with E4.1B (2.9%) and Barclays PLC with E4.0B (2.9%).
The GBP funds tracked by MFI International contain, on average (as of 8/31/22): 36% in CDs, 18% in CP, 25% in Other (Time Deposits), 19% in Repo, 2% in Treasury and 0% in Agency. Sterling funds have on average 38.9% of their portfolios maturing Overnight, 8.7% maturing in 2-7 Days, 12.2% maturing in 8-30 Days, 12.6% maturing in 31-60 Days, 9.5% maturing in 61-90 Days, 13.8% maturing in 91-180 Days and 4.3% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: Japan (16.5%), Canada (16.2%), France (15.0%), the U.K. (13.7%), Australia (7.0%), the Netherlands (5.3%), Sweden (4.8%), the U.S. (3.5%), Germany (3.4%) and Spain (2.8%).
The 10 Largest Issuers to "offshore" GBP money funds include: UK Treasury with L10.8B (5.9%), Mitsubishi UFJ Financial Group Inc with L7.9B (4.4%), Toronto-Dominion Bank with L7.3B (4.0%), Mizuho Corporate Bank Ltd with L7.3B (4.0%), BNP Paribas with L6.4B (3.6%), Bank of Nova Scotia with L6.4B (3.6%), Sumitomo Mitsui Trust Bank with L6.4B (3.5%), Nordea Bank with L6.3B (3.5%), RBC with L6.2B (3.4%) and Barclays with L5.8B (3.2%).
