Crane Data's latest Money Fund Intelligence International shows that assets in European or "offshore" money market mutual funds surged higher over the past 30 days to a record $1.103 trillion, as yields also continued higher. Assets for USD, EUR and GBP MMFs all rose over the past month. European MMF assets just recently broke above their previous record high of $1.101 trillion set in mid-December 2021. These U.S.-style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, increased by $20.5 billion over the 30 days through 9/14. The totals are up $72.8 billion (7.1%) year-to-date. (Note that currency moves in the U.S. dollar cause Euro and Sterling totals to shift when they're translated back into totals in U.S. dollars. See our latest MFI International for more on the "offshore" money fund marketplace. These funds are only available to qualified, non-U.S. investors.) (Note too: Please join us next week for our European Money Fund Symposium, which will take place Sept. 25-26, 2023 in Edinburgh. For those attending, safe travels and see you in Scotland!)
Offshore US Dollar money funds increased $16.7 billion over the last 30 days and are up $52.7 billion YTD to $602.2 billion. Euro funds increased E4.5 billion over the past month. YTD, they're up E15.1 billion to E195.5 billion. GBP money funds increased L3.4 billion over 30 days, but they're still down L31.7 billion YTD at L231.8B. U.S. Dollar (USD) money funds (206) account for over half (54.6%) of the "European" money fund total, while Euro (EUR) money funds (116) make up 19.0% and Pound Sterling (GBP) funds (139) total 26.4%. We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers Friday), below.
Offshore USD MMFs yield 5.28% (7-Day) on average (as of 9/14/23), up from 5.24% a month earlier. Yields averaged 4.20% on 12/30/22, 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 finally left negative yield territory in the second half of 2022 and should keep moving higher again in coming days following the ECB's latest rate hike. They're yielding 3.62% on average, up from 3.57% a month ago and up from 1.48% on 12/30/22, -0.80% on 12/31/21, -0.71% at year-end 2020, -0.59% at year-end 2019 and -0.49% at year-end 2018. Meanwhile, GBP MMFs broke the 5.0% barrier 2 months ago and now yield 5.17%, up 15 bps from a month ago, and up from 3.17% on 12/30/22. Sterling yields were 0.01% on 12/31/21, 0.00% on 12/31/20, 0.64% on 12/31/19 and 0.64% on 12/31/18.
Crane's September MFI International Portfolio Holdings, with data as of 8/31/23, show that European-domiciled US Dollar MMFs, on average, consist of 22% in Commercial Paper (CP), 15% in Certificates of Deposit (CDs), 29% in Repo, 18% in Treasury securities, 15% in Other securities (primarily Time Deposits) and 1% in Government Agency securities. USD funds have on average 55.5% of their portfolios maturing Overnight, 5.0% maturing in 2-7 Days, 10.1% maturing in 8-30 Days, 8.2% maturing in 31-60 Days, 6.5% maturing in 61-90 Days, 10.2% maturing in 91-180 Days and 4.4% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (38.4%), France (12.3%), Canada (9.8%), Japan (9.6%), Sweden (5.3%), the U.K. (5.2%), the Netherlands (4.4%), Australia (2.7%), Germany (2.1%) and Austria (1.6%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $115.0 billion (17.9% of total assets), Fixed Income Clearing Corp with $33.2B (5.2%), Federal Reserve Bank of New York with $22.5B (3.5%), BNP Paribas with $21.9B (3.4%), Credit Agricole with $21.8B (3.4%), Barclays with $18.6B (2.9%), Sumitomo Mitsui Banking Corp with $18.1B (2.8%), RBC with $18.1B (2.8%), Mizuho Corporate Bank Ltd with $17.2B (2.7%) and Citi with $16.2B (2.5%).
Euro MMFs tracked by Crane Data contain, on average 44% in CP, 20% in CDs, 23% in Other (primarily Time Deposits), 11% in Repo, 2% in Treasuries and 0% in Agency securities. EUR funds have on average 41.8% of their portfolios maturing Overnight, 11.3% maturing in 2-7 Days, 16.4% maturing in 8-30 Days, 7.5% maturing in 31-60 Days, 7.9% maturing in 61-90 Days, 9.9% maturing in 91-180 Days and 5.2% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (28.7%), Japan (13.1%), the U.S. (10.5%), Germany (8.6%), Canada (6.4%), the U.K. (5.6%), Sweden (5.2%), Austria (5.2%), Belgium (3.5%) and the Netherlands (3.4%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E10.7B (5.8%), Republic of France with E9.0B (4.9%), BNP Paribas with E8.4B (4.6%), Erste Group Bank AG with E7.8B (4.2%), Landesbank Baden-Wurttemberg with E6.8B (3.7%), DZ Bank AG with E6.4B (3.5%), Credit Mutuel with E6.0B (3.2%), Societe Generale with E5.9B (3.2%), Mitsubishi UFJ Financial Group Inc with E5.8B (3.1%) and Sumitomo Mitsui Banking Corp with E5.6B (3.0%).
The GBP funds tracked by MFI International contain, on average (as of 8/31/23): 36% in CDs, 18% in CP, 27% in Other (Time Deposits), 16% in Repo, 3% in Treasury and 0% in Agency. Sterling funds have on average 39.2% of their portfolios maturing Overnight, 11.0% maturing in 2-7 Days, 11.6% maturing in 8-30 Days, 11.4% maturing in 31-60 Days, 9.7% maturing in 61-90 Days, 9.8% maturing in 91-180 Days and 7.3% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (16.7%), Japan (16.5%), Canada (14.5%), the U.K. (13.4%), Australia (7.5%), the U.S. (6.8%), the Netherlands (5.4%), Sweden (4.3%), Spain (3.1%) and Singapore (2.8%).
The 10 Largest Issuers to "offshore" GBP money funds include: Mitsubishi UFJ Financial Group Inc with L9.5B (4.6%), Toronto-Dominion Bank with L9.5B (4.6%), BNP Paribas with L8.4B (4.0%), Mizuho Corporate Bank Ltd with L8.4B (4.0%), BPCE SA with L8.3B (4.0%), UK Treasury with L8.1B (3.9%) Sumitomo Mitsui Trust Bank with L7.8B (3.8%), RBC with L7.3B (3.5%), Banco Santander with L6.3B (3.1%) and Credit Agricole with L6.3B (3.0%).
