Crane Data's latest MFI International shows that assets in European or "offshore" money market mutual funds declined over the past month to $973.8 billion. European MMF assets declined during the first 4 1/2 months of 2022, then increased over 2 months. But they've declined since. They 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, decreased by $16.5 billion over the 30 days through 8/11. (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 $89.2 billion (-8.4%) year-to-date. Offshore US Dollar money funds are up $3.7 billion over the last 30 days and are up $2.8 billion YTD to $537.2 billion. Euro funds rose E17.2 billion over the past month. YTD they're down E5.6 billion to E152.8 billion. GBP money funds increased L3.7 billion over 30 days; they are down by L18.7 billion YTD to L228.4B. U.S. Dollar (USD) money funds (206) account for over half (55.2%) of the "European" money fund total, while Euro (EUR) money funds (96) make up 16.1% and Pound Sterling (GBP) funds (133) total 28.7%. We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which will go out to subscribers Tuesday), below. (Note: Make your plans and hotel reservations soon for our upcoming European Money Fund Symposium, which is Sept. 27-28, 2022, in Paris, France.)

Offshore USD MMFs yield 2.05% (7-Day) on average (as of 8/11/22), up from 1.34% 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 yield -0.20% 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 1.46%, up 41 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 August MFII Portfolio Holdings, with data as of 7/31/22, show that European-domiciled US Dollar MMFs, on average, consist of 23% in Commercial Paper (CP), 15% in Certificates of Deposit (CDs), 28% in Repo, 16% in Treasury securities, 17% in Other securities (primarily Time Deposits) and 1% in Government Agency securities. USD funds have on average 59.5% of their portfolios maturing Overnight, 7.1% maturing in 2-7 Days, 6.5% maturing in 8-30 Days, 8.7% maturing in 31-60 Days, 6.3% maturing in 61-90 Days, 10.1% maturing in 91-180 Days and 1.9% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (29.7%), France (16.0%), Canada (12.2%), Japan (10.6%), Sweden (7.0%), the Netherlands (4.2%), Australia (3.9%), the U.K. (3.9%), Germany (2.4%) and Austria (1.9%).

The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $89.0 billion (16.4% of total assets), RBC with $30.8B (5.7%), Credit Agricole with $23.8B (4.4%), BNP Paribas with $23.2B (4.3%), Sumitomo Mitsui Banking Corp with $22.9B (4.2%), Federal Reserve Bank of New York with $21.4B (3.9%), Barclays with $14.6B (2.7%), Skandinaviska Enskilda Banken AB with $13.5B (2.5%), Societe Generale with $13.4B (2.5%) and Fixed Income Clearing Corp <b:>`_ with $12.5B (2.3%).

Euro MMFs tracked by Crane Data contain, on average 40% in CP, 20% in CDs, 29% in Other (primarily Time Deposits), 10% in Repo, 1% in Treasuries and 0% in Agency securities. EUR funds have on average 41.1% of their portfolios maturing Overnight, 10.4% maturing in 2-7 Days, 16.7% maturing in 8-30 Days, 16.8% maturing in 31-60 Days, 5.7% maturing in 61-90 Days, 6.6% maturing in 91-180 Days and 2.6% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (31.9%), Japan (13.4%), the U.S. (7.4%), Sweden (6.5%), Germany (5.8%), the U.K. (5.8%), Canada (5.1%), Austria (4.5%), the Netherlands (4.0%) and Switzerland (3.8%).

The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E9.0B (6.0%), BNP Paribas with E6.7B (4.5%), Societe Generale with E6.4B (4.3%), DZ Bank AG with E5.6B (3.8%), Mizuho Corporate Bank Ltd with E5.2B (3.5%), Natixis with E5.1B (3.4%), Credit Mutuel with E4.9B (3.3%), Sumitomo Mitsui Banking Corp with E4.9B (3.3%), Mitsubishi UFJ Financial Group Inc with E4.5B (3.0%) and Republic of France with E4.3B (2.9%).

The GBP funds tracked by MFI International contain, on average (as of 7/31/22): 34% in CDs, 20% in CP, 25% in Other (Time Deposits), 19% in Repo, 2% in Treasury and 0% in Agency. Sterling funds have on average 40.1% of their portfolios maturing Overnight, 12.0% maturing in 2-7 Days, 13.8% maturing in 8-30 Days, 7.0% maturing in 31-60 Days, 11.3% maturing in 61-90 Days, 10.5% maturing in 91-180 Days and 5.3% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: France (17.7%), Canada (17.1%), Japan (16.8%), the U.K. (10.3%), Australia (6.3%), the U.S. (4.8%), the Netherlands (4.4%), Sweden (4.3%), Germany (3.8%) and Spain (3.1%).

The 10 Largest Issuers to "offshore" GBP money funds include: Mitsubishi UFJ Financial Group Inc with L7.0B (4.6%), BNP Paribas with L6.9B (4.6%), Mizuho Corporate Bank Ltd with L6.3B (4.2%), RBC with L6.3B (4.2%), Toronto-Dominion Bank with L6.3B (4.2%), Bank of Nova Scotia with L5.8B (3.8%), Barclays with L5.7B (3.8%), Societe Generale with L5.3B (3.5%), Sumitomo Mitsui Banking Corp with L5.3B (3.5%) and Banco Santander with L4.7B (3.1%).

In related news, Fitch Ratings published a release entitled, "Chinese Money Market Fund Market to Continue Expanding." They write, "China for the first time overtook Europe as the world's second-largest money market fund (MMF) market in 2Q22, accounting for about 18% of global MMF assets, after the US (55%) and before Europe (17%), says Fitch Ratings. Chinese MMFs have expanded at a five-year compound annual growth rate of about 16% to end-June 2022. Total assets under management reached a record high of CNY11.0 trillion in May 2022, but decreased slightly to CNY10.6 trillion in June, according to Asset Management Association of China."

Fitch tells us, "China's MMF market has also become more diversified, as the largest fund has shrunk in recent years and flows have been diverted into other funds. The market share of the largest MMF and the top-five MMFs fell to 7% and 15%, respectively, in June 2022, from highs of over 30% and 60% in 2014. The Chinese MMF yield dropped to below 1.6% as of August 2022, from 2.7% at end-2020, as short-term interest rates moved downwards. This level is close to the 2020 nadir of 1.5%. We expect China's policy interest rate to remain stable in the next 12 months, which should limit further downward pressure of the MMF yield."

They add, "Regulatory reforms since 2015 have brought Chinese MMFs closer to international standards, however, there is still a substantial discrepancy between MMFs in China and those in western markets. The 2022 regulatory reform proposals focus on large MMFs, which are classified as 'Important'. These MMFs will be subject to stricter rules, but we do not expect Fitch-rated Chinese MMFs to be affected, as their size falls below the threshold for 'Important' MMFs."

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