U.S. Prime Money Market Funds Remain Cautious with Respect to Eurozone Holdings

By Emily Gallagher and Chris Plantier

September 21, 2012

Over the summer, prime money market funds marginally increased their holdings of eurozone issuers: from 12.2 percent of assets in June (chart) to 14.0 percent of assets in August. This increase was driven primarily by a rise in holdings of French assets (up to 5.1 percent from 4.3 percent in June) and in holdings of German assets (up to 5.1 percent from 4.1 percent in June).

Since November 2011, this share of eurozone holdings has hovered in the 12 to 16 percent range—roughly half of June 2011 levels—and maturity of these holdings remains very short-term. For example, 84 percent of prime money market funds’ French holdings matured in thirty days or less at end August 2012, compared to 37 percent in June 2011.

U.S. Prime Money Market Funds’ Holdings of Eurozone Issuers

Percentage of prime funds’ total assets, end of month

Note: Data exclude prime money market funds not registered under the Securities Act of 1933.

Sources: Investment Company Institute tabulation of data provided by Crane Data.

Prime Money Market Funds’ Holdings by Home Country of Issuer

August 30, 2012

Country Billions of dollars Percentage of total assets
World Total $1,408 100%
Europe 451.1 32.1
Eurozone 196.9 14.0
France 71.2 5.1
Germany 71.5 5.1
Netherlands 45.9 3.3
Belgium 2.0 0.1
Austria 5.2 0.4
Spain 0.6 0.0
Luxembourg 0.4 0.0
Italy 0.1 0.0
Non-eurozone 254.2 18.1
UK 105.4 7.5
Sweden 64.9 4.6
Switzerland 64.1 4.6
Norway 19.8 1.4
Americas 674.9 47.9
USA 510.5 36.3
Canada 163.7 11.6
Chile 0.6 0.0
Venezuela 0.1 0.0
Asia and Pacific 274.5 19.5
Japan 164.1 11.7
AUS/NZ 99.6 7.1
Singapore 8.8 0.6
India 0.4 0.0
China 1.4 0.1
Korea 0.2 0.0
Supranational 1.2 0.1
Unclassified 6.2 0.4

Note: Calculations are based on a sample of 113 funds, representing an estimated 98.4 percent of prime funds' assets.

Source: Investment Company Institute tabulation of data provided by Crane Data

For more on money market funds, please visit ICI’s Money Market Funds Resource Center.

Emily Gallagher is an ICI Research Associate and Chris Plantier is an ICI Senior Economist.