The Investment Company Institute published, "Worldwide Regulated Open-Fund Assets and Flows, Second Quarter 2023," last week, which shows that money fund assets globally jumped by $257.9 billion, or 2.7%, in Q2'23 to $9.719 trillion. The increases were led by a sharp jump in money funds in U.S., while India, France, Mexico and Luxembourg also rose. Meanwhile, money funds in China and Ireland were lower. MMF assets worldwide increased by $1.237 trillion, or 14.6%, in the 12 months through 6/30/23, and money funds in the U.S. now represent 56.1% of worldwide assets. We review the latest Worldwide MMF totals, below. (Note: Thanks to those attending and supporting our European Money Fund Symposium, which takes place Sept. 25-26, 2023 in Edinburgh. Welcome to Scotland!)
ICI's release says, "Worldwide regulated open-end fund assets increased 3.1 percent to $65.07 trillion at the end of the second quarter of 2023, excluding funds of funds. Worldwide net cash inflow to all funds was $461 billion in the second quarter, compared with $667 billion of net inflows in the first quarter of 2023. 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 second quarter of 2023 contains statistics from 46 jurisdictions."
It explains, "The growth rate of total regulated open-end fund assets reported in US dollars was decreased by US dollar appreciation over the second quarter of 2023. For example, on a US dollar–denominated basis, fund assets in Europe increased by 1.9 percent in the second quarter, compared with an increase of 2.0 percent on a euro-denominated basis."
ICI's quarterly continues, "On a US dollar–denominated basis, equity fund assets increased by 4.6 percent to $29.83 trillion at the end of the second quarter of 2023. Bond fund assets increased by 1.8 percent to $12.21 trillion in the second quarter. Balanced/mixed fund assets decreased by 0.1 percent to $7.22 trillion in the second quarter, while money market fund assets increased by 2.7 percent globally to $9.72 trillion."
The release also tells us, "At the end of the second quarter of 2023, 46% of worldwide regulated open-end fund assets were held in equity funds. The asset share of bond funds was 19% and the asset share of balanced/mixed funds was 11%. Money market fund assets represented 15% of the worldwide total. By region, 54% of worldwide assets were in the Americas in the second quarter of 2023, 31% were in Europe, and 15 percent were in Africa and the Asia-Pacific regions."
ICI adds, "Net sales of regulated open-end funds worldwide were $461 billion in the second quarter of 2023..... Globally, bond funds posted an inflow of $225 billion in the second quarter of 2023, after recording an inflow of $145 billion in the first quarter.... Money market funds worldwide experienced an inflow of $300 billion in the second quarter of 2023 after registering an inflow of $544 billion in the first quarter of 2023."
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 Q2'23 with $5.450 trillion, or 56.1% of all global MMF assets. U.S. MMF assets increased by $211.6 billion (4.0%) in Q2'23 and have increased by $909.1 billion (20.0%) in the 12 months through June 30, 2023. China remained in second place among countries overall. China saw assets decrease $11.3 billion (-0.7%) in Q2 to $1.583 trillion (16.3% of worldwide assets). Over the 12 months through June 30, 2023, Chinese MMF assets have increased by $1.3 billion, or 0.1%.
Ireland remained third among country rankings, ending Q2 with $711.5 billion (7.3% of worldwide assets). Irish MMFs were down $7.1B for the quarter, or -1.0%, and up $61.7B, or 9.5%, over the last 12 months. Luxembourg remained in fourth place with $501.4 billion (5.2% of worldwide assets). Assets there increased $10.9 billion, or 2.2%, in Q2, and were up $74.1 billion, or 17.3%, over one year. France was in fifth place with $427.5B, or 4.4% of the total, up $14.0 billion in Q2 (3.4%) and up $82.7B (24.0%) over 12 months.
Australia was listed in sixth place with $253.5 billion, or 2.6% of worldwide assets. Its MMFs decreased by $265 million, or -0.1%, in Q2. Korea was the 7th ranked country and saw MMF assets decrease $8.6 billion, or -6.2%, in Q2'23 to $129.3 billion (1.3% of the total); they've increased $15.1 billion (13.2%) for the year. Brazil was at 8th place with $116.7 billion (1.2%); assets there increased $6.0 billion (5.4%) in Q2 and increased by $9.9 billion (9.3%) over 12 months. Mexico moved up to 9th place, as assets increased $12.3 billion, or 12.4%, to 111.8 billion (1.2% of total assets) in Q2. They've increased $33.3 billion (42.5%) over the previous 12 months. ICI's statistics show Japan fell down to 10th place with $105.8B, or 1.1% of total assets, up $4.8 billion (4.7%) for the quarter.
India was in 11th place, increasing $14.5 billion, or 27.0%, to $68.2 billion (0.6% of total assets) in Q2 and increasing $8.3 billion (13.8%) over the previous 12 months. Canada ($48.8B, up $5.9B and up $19.8B over the quarter and year, respectively) ranked 12th ahead of Switzerland. ($36.9B, up $3.0B and up $14.7B). Chile ($30.2B, up $2.4B and up $10.6B) and The United Kingdom ($26.1B, up $1.7B and down $288M), rank 14th and 15th, respectively. Chinese Taipei, Argentina, South Africa, Belgium 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 $5.782 trillion, up $736.3 billion in Q2. Asian MMFs decreased by $1.3 billion to $2.175 trillion, and Europe saw its money funds jump $22.4 billion in Q2'23 to $1.741 trillion. Africa saw its money funds decrease $1.4 billion to $20.5 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. (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.)
