Crane Data's latest Money Fund Intelligence International shows that assets in European or "offshore" money market mutual funds moved higher again over the past 30 days to a record $1.185 trillion, and yields also inched higher. Assets for USD, EUR and GBP MMFs all rose over the past month. Last month, European MMF assets broke above their previous record high of $1.101 trillion set in mid-December 2021, and they've now surpassed last month's record of $1.149 trillion. These U.S.-style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, increased by $35.3 billion over the 30 days through 12/13. The totals are up $154.4 billion (15.0%) 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.)
Offshore US Dollar money funds increased $10.3 billion over the last 30 days and are up $94.3 billion YTD to $643.9 billion. Euro funds increased E14.3 billion over the past month. YTD, they're up E42.7 billion to E223.0 billion. GBP money funds increased L7.6 billion over 30 days, and they're still down L23.5 billion YTD at L240.0B. U.S. Dollar (USD) money funds (209) account for over half (54.4%) of the "European" money fund total, while Euro (EUR) money funds (115) make up 20.2% and Pound Sterling (GBP) funds (139) total 25.5%. 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 5.32% (7-Day) on average (as of 12/13/23), unchanged from 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 but they should remain flat until the ECB moves rates again. They're yielding 3.86% on average, up from 3.85% 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 5 months ago and now yield 5.24%, unchanged 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 December MFI International Portfolio Holdings, with data as of 11/30/23, show that European-domiciled US Dollar MMFs, on average, consist of 25% in Commercial Paper (CP), 15% in Certificates of Deposit (CDs), 20% in Repo, 25% in Treasury securities, 13% in Other securities (primarily Time Deposits) and 2% in Government Agency securities. USD funds have on average 42.8% of their portfolios maturing Overnight, 5.9% maturing in 2-7 Days, 8.8% maturing in 8-30 Days, 13.6% maturing in 31-60 Days, 9.2% maturing in 61-90 Days, 13.0% maturing in 91-180 Days and 6.7% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (41.9%), France (11.5%), Canada (9.2%), Japan (8.2%), the U.K. (5.0%), Sweden (4.7%), the Netherlands (4.1%), Australia (3.0%), Germany (2.4%), and Belgium (2.1%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $171.8 billion (24.8% of total assets), Fixed Income Clearing Corp with $42.2B (6.1%), Credit Agricole with $22.7B (3.3%), Barclays with $20.8B (3.0%), Mizuho Corporate Bank Ltd with $18.4B (2.6%), RBC with $18.2B (2.6%), BNP Paribas with $17.4B (2.5%), JP Morgan with $14.0B (2.0%), Toronto-Dominion Bank with $13.4B (1.9%) and Bank of America with $13.2B (1.9%).
Euro MMFs tracked by Crane Data contain, on average 38% in CP, 21% in CDs, 21% in Other (primarily Time Deposits), 15% in Repo, 4% in Treasuries and 1% in Agency securities. EUR funds have on average 39.9% of their portfolios maturing Overnight, 7.3% maturing in 2-7 Days, 6.1% maturing in 8-30 Days, 18.6% maturing in 31-60 Days, 11.7% maturing in 61-90 Days, 9.6% maturing in 91-180 Days and 6.8% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (33.4%), Japan (13.1%), the U.S. (8.5%), Canada (6.9%), the U.K. (5.9%), Germany (5.2%), Austria (4.7%), Belgium (4.1%), the Netherlands (3.9%) and Sweden (3.5%).
The 10 Largest Issuers to "offshore" EUR money funds include: Republic of France with E14.7B (7.3%), Credit Agricole with E12.5B (6.2%), BNP Paribas with E9.6B (4.7%), Credit Mutuel with E8.0B (4.0%), Mitsubishi UFJ Financial Group Inc with E6.8B (3.4%), Erste Group Bank AG with E6.7B (3.3%), BPCE SA with E6.5B (3.2%), Societe Generale with E6.2B (3.1%), Mizuho Corporate Bank Ltd with E6.0B (3.0%), and DZ Bank AG with E5.2B (2.6%).
The GBP funds tracked by MFI International contain, on average (as of 11/30/23): 39% in CDs, 18% in CP, 22% in Other (Time Deposits), 17% in Repo, 4% in Treasury and 0% in Agency. Sterling funds have on average 34.1% of their portfolios maturing Overnight, 7.6% maturing in 2-7 Days, 4.0% maturing in 8-30 Days, 18.6% maturing in 31-60 Days, 13.5% maturing in 61-90 Days, 14.7% maturing in 91-180 Days and 7.5% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (16.8%), the U.K. (16.1%), Japan (16.0%), Canada (13.2%), the U.S. (7.6%), Australia (7.5%), the Netherlands (4.1%), Sweden (3.6%), Singapore (2.8%) and Spain (2.1%).
The 10 Largest Issuers to "offshore" GBP money funds include: UK Treasury with L15.3B (7.5%), Toronto-Dominion Bank with L8.8B (4.3%), BNP Paribas with L8.3B (4.1%), Mitsubishi UFJ Financial Group Inc with L7.9B (3.9%), Mizuho Corporate Bank Ltd with L7.8B (3.9%), Sumitomo Mitsui Banking Corp with L6.7B (3.3%), Credit Agricole with L6.0B (3.0%), BPCE SA with L5.9B (2.9%), Sumitomo Mitsui Trust Bank with L5.9B (2.9%) and RBC with L5.6B (2.8%).
