This report does not constitute a rating action.
Index data | |||||
---|---|---|---|---|---|
Index name | 7-day net yield (%) | 30-day net yield (%) | WAM(R)--days | Total net assets (bil.) | Credit quality (%) (A-1+/A-1) |
S&P Global Ratings 'AAAm' euro MMFs | 2.46 | 2.54 | 34 | €271.5 | 61/39 |
S&P Global Ratings 'AAAm' sterling MMFs | 4.43 | 4.44 | 42 | £245.2 | 63/37 |
S&P Global Ratings 'AAAm' U.S. dollar MMFs | 4.29 | 4.31 | 38 | $704.0 | 69/31 |
'AAAm' Money Market Fund Indicators
S&P Global Ratings' 'AAAm' money market fund (MMF) indicators are metrics of Europe-domiciled funds that seek to maintain principal value and limit exposure to principal losses due to credit risk, as defined in our principal stability fund ratings criteria. These MMF indicators provide a benchmarking tool of the 'A-1+' credit quality, portfolio composition, maturity distribution, net asset movements, and yields of MMFs with a 'AAAm' principal stability fund rating (PSFR).
The MMF indicators demonstrate the investment practices of funds conforming to S&P Global Ratings' PSFR criteria. An individual fund's metrics below those of our 'AAAm' MMF indicators may indicate a more conservative approach to investment, while risk metrics well above the average may signal a more aggressive approach, albeit undertaken within the constraints of a 'AAAm' PSFR.
Market Comment
Money market funds continued to be attractive to investors in the first quarter of 2025, as Europe-domiciled MMFs rated by S&P Global Ratings reached an all-time high in terms of assets under management (AUM), totaling €1.2 trillion as of March 31, 2025. In the quarter, net assets in euro-denominated funds grew 3.2% to €271.5 billion, sterling-denominated funds were up 2.6% to £245.2 billion, and U.S. dollar-denominated funds saw growth of 3.4% with net assets totaling over $704 billion. This marks the fourth consecutive quarter-on-quarter growth for MMFs across the three currencies. When comparing net assets to the first quarter of 2024, MMFs in all three currencies have seen double-digit growth with euro funds (37.1%), sterling funds (10.3%), and U.S. dollar funds (15.5%).
The European Central Bank (ECB) and the Bank of England (BoE) cut interest rates in the first quarter of 2025, while the U.S. Federal Reserve (the Fed) left the federal funds rate unchanged with a target range of 4.25% to 4.5%. The ECB cut rates by 25 basis points (bps) at both its February and March policy meetings, lowering the deposit rate from 3.0% to 2.5%. The BoE reduced its bank rate by 25bps to 4.5% in February. Following the two rate cuts by the ECB, euro MMFs seven-day yields fell 49bps in the quarter, averaging 2.46%. Sterling MMFs yields dropped by 24bps, averaging 4.43%, while U.S. dollar-denominated funds average seven-day yields were 4.29%, a decline of 14bps from the previous quarter.
Weighted-average maturities (WAM) increased slightly in euro and sterling MMFs by two and three days, respectively. For U.S. dollar MMFs, their WAMs decreased by three days.
We consider credit quality to be a key factor in the stability of net asset value (NAV) and view the price of higher-rated assets as more stable than investments with lower ratings. In the first quarter, we saw average 'A-1+' credit quality slightly decrease across all three currencies. Euro-denominated MMFs saw average 'A-1+' credit quality drop to 61% from 62%, U.S. dollar funds to 71% from 69%, while sterling funds average 'A-1+' percentage dipped the most to 60% from 64%. While average 'A-1+' credit quality decreased for all three currencies, the credit quality in Europe-domiciled MMFs was still maintained above the 50% minimum requirement for 'AAAm' rated funds. Each week, we analyze the surveillance data, including credit metrics on asset levels, NAV per share, credit quality, diversification, duration, and redemption patterns.
Table 1
'AAAm' principal stability funds seven-day net yield (%) | ||||
---|---|---|---|---|
Index | June 2024 | September 2024 | December 2024 | March 2025 |
S&P Global Ratings 'AAAm' euro MMFs | 3.66 | 3.48 | 2.95 | 2.46 |
S&P Global Ratings 'AAAm' sterling MMFs | 5.12 | 4.91 | 4.67 | 4.43 |
S&P Global Ratings 'AAAm' U.S. dollar MMFs | 5.26 | 4.92 | 4.43 | 4.29 |
Table 2
'AAAm' principal stability funds weighted average maturity (In days) | ||||
---|---|---|---|---|
Index | June 2024 | September 2024 | December 2024 | March 2025 |
S&P Global Ratings 'AAAm' euro MMFs | 40 | 33 | 32 | 34 |
S&P Global Ratings 'AAAm' sterling MMFs | 44 | 40 | 39 | 42 |
S&P Global Ratings 'AAAm' U.S. dollar MMFs | 41 | 35 | 41 | 38 |
Table 3
AAAm' principal stability funds 'A-1+' credit quality (%) | |||||||
---|---|---|---|---|---|---|---|
Index | June 2024 | September 2024 | December 2024 | March 2025 | |||
S&P Global Ratings 'AAAm' euro MMFs | 63 | 61 | 62 | 61 | |||
S&P Global Ratings 'AAAm' sterling MMFs | 66 | 65 | 64 | 60 | |||
S&P Global Ratings 'AAAm' U.S. dollar MMFs | 74 | 73 | 71 | 69 |
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Top 10 Europe-Domiciled 'AAAm' MMFs--Euro, Sterling, And U.S. Dollar--By Assets--Key Statistics
Table 4
'AAAm' euro principal stability funds | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Rating | Fund name | Net assets (mil. €) | --Portfolio maturity (days)-- | Portfolio credit quality (%) | ||||||||
WAM (R) | WAM (F) | A-1+ | ||||||||||
AAAm | Institutional Cash Series plc - BlackRock ICS Euro Liquidity Fund | 85,426 | 45 | 66 | 61 | |||||||
AAAm | BNP Paribas InstiCash EUR 1D LVNAV | 31,982 | 45 | 79 | 59 | |||||||
AAAm | JPMorgan Liquidity Funds - EUR Liquidity LVNAV Fund | 30,265 | 42 | 62 | 66 | |||||||
AAAm | Goldman Sachs Funds, plc - Goldman Sachs Euro Liquid Reserves Fund | 23,280 | 43 | 52 | 56 | |||||||
AAAm | HSBC Global Liquidity Funds plc - HSBC Euro ESG Liquidity Fund | 22,822 | 28 | 75 | 55 | |||||||
AAAm | DWS Deutsche Global Liquidity Series PLC - Deutsche Managed Euro Fund | 20,417 | 30 | 44 | 51 | |||||||
AAAm | MS Liquidity Funds – Euro Government Liquidity Fund | 18,548 | 37 | 55 | 58 | |||||||
AAAm | State Street Liquidity plc - State Street EUR Liquidity LVNAV Fund | 8,317 | 35 | 53 | 61 | |||||||
AAAm | Fidelity Institutional Liquidity Fund PLC - The Euro Fund | 6,967 | 31 | 55 | 62 | |||||||
AAAm | Institutional Cash Series plc - BlackRock ICS Euro Government Liquidity Fund | 4,815 | 25 | 25 | 100 | |||||||
WAM (R)--Weighted average maturity to reset. WAM (F)--Weighted average maturity to final. |
Table 5
'AAAm' sterling principal stability funds | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Rating | Fund name | Net assets (mil. £) | --Portfolio maturity (days)-- | Portfolio credit quality (%) | ||||||||
WAM (R) | WAM (F) | A-1+ | ||||||||||
AAAm | Institutional Cash Series plc - BlackRock ICS Sterling Liquidity Fund | 42,834 | 52 | 68 | 65 | |||||||
AAAm | LGIM Liquidity Funds PLC - LGIM Sterling Liquidity Fund | 33,083 | 50 | 83 | 61 | |||||||
AAAm | Insight Liquidity Funds PLC - ILF GBP Liquidity Fund | 22,040 | 40 | 60 | 69 | |||||||
AAAm | Aviva Investors Liquidity Funds PLC - Aviva Investors Sterling Liquidity Fund | 20,019 | 55 | 80 | 50 | |||||||
AAAm | Aberdeen Standard Liquidity Fund (Lux) - Sterling Fund | 17,861 | 49 | 79 | 54 | |||||||
AAAm | JPMorgan Liquidity Funds - GBP Liquidity LVNAV Fund | 17,449 | 46 | 67 | 68 | |||||||
AAAm | HSBC Global Liquidity Funds PLC - HSBC Sterling Liquidity Fund | 15,182 | 37 | 60 | 59 | |||||||
AAAm | Goldman Sachs Funds, plc - Goldman Sachs Sterling Liquid Reserves Fund | 14,825 | 51 | 61 | 62 | |||||||
AAAm | Northern Trust Global Funds PLC - The Sterling Fund | 10,381 | 40 | 63 | 66 | |||||||
AAAm | MS Liquidity Funds - Sterling Liquidity Fund | 7,221 | 47 | 69 | 58 | |||||||
WAM (R)--Weighted average maturity to reset. WAM (F)--Weighted average maturity to final. |
Table 6
'AAAm' U.S. dollar principal stability funds (EU-domiciled) | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Rating | Fund name | Net assets (mil. $) | --Portfolio maturity (days)-- | Portfolio credit quality (%) | ||||||||
WAM (R) | WAM (F) | A-1+ | ||||||||||
AAAm | JPMorgan Liquidity Funds - USD Liquidity LVNAV Fund | 133,255 | 43 | 79 | 51 | |||||||
AAAm | Institutional Cash Series plc - BlackRock ICS US Dollar Liquidity Fund | 90,613 | 43 | 81 | 56 | |||||||
AAAm | JPMorgan Liquidity Funds - USD Treasury CNAV Fund | 68,026 | 36 | 50 | 99 | |||||||
AAAm | Goldman Sachs Funds, plc - Goldman Sachs US$ Treasury Liquid Reserves Fund | 57,846 | 56 | 73 | 100 | |||||||
AAAm | MS Liquidity Funds - US Dollar Liquidity Fund | 54,606 | 48 | 80 | 58 | |||||||
AAAm | HSBC Global Liquidity Funds PLC - HSBC US Dollar Liquidity Fund | 50,597 | 45 | 76 | 60 | |||||||
AAAm | Goldman Sachs Funds, plc - Goldman Sachs US$ Liquid Reserves Fund | 45,735 | 33 | 54 | 75 | |||||||
AAAm | State Street Liquidity plc - State Street USD Liquidity LVNAV Fund | 29,479 | 35 | 81 | 62 | |||||||
AAAm | Institutional Cash Series plc - BlackRock ICS US Treasury Fund | 24,799 | 27 | 43 | 100 | |||||||
AAAm | Northern Trust Global Funds PLC - The US Dollar Fund | 21,965 | 32 | 70 | 57 | |||||||
WAM (R)--Weighted average maturity to reset. WAM (F)--Weighted average maturity to final. |
Primary Contact: | Michael Mango, London 44-2071760485; michael.mango1@spglobal.com |
Secondary Contact: | Andrew Paranthoiene, London 44-20-7176-8416; andrew.paranthoiene@spglobal.com |
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