Worldwide Mutual Fund Assets and Flows
First Quarter 2003

Washington, DC, July 7, 2003 - Assets of worldwide mutual funds stood at $11.2 trillion at the end of the first quarter of 2003, down slightly from the level at the end of 2002. The Investment Company Institute compiles worldwide statistics on behalf of the International Investment Funds Association, an organization of national mutual fund associations. The collection for the first quarter of 2003 contains statistics from 38 countries. (Note: These data may have been revised in subsequent releases.)

Worldwide Mutual Fund Assets
(trillions of U.S. dollars, end of quarter)

Mutual fund assets in the United States fell 2.0 percent in the first quarter, while assets of other countries collectively rose 2.5 percent. The strength in fund assets outside the United States reflected weakness in the U.S. dollar, which moved lower against most currencies. Measured in local currencies, fund assets declined over the first quarter in the majority of countries, including nine of the ten largest.

Worldwide equity fund assets, measured in U.S. dollars, dropped 4.2 percent in the first quarter. Most stock markets came under selling pressure during the quarter, with many European and several Asia-Pacific exchanges posting double-digit losses. In contrast, bond fund assets rose 5.7 percent, paced by strength in Europe and the Americas. Money market fund assets rose slightly, as sizable gains in Europe offset declines in the United States and the Asia-Pacific region. Balanced/mixed funds recorded a small decline in assets.

Worldwide Assets of Equity, Bond, Money Market, and Balanced / Mixed Funds
(billions of U.S. dollars, end of quarter)

Net sales of mutual funds were $13 billion in the first quarter of 2003, down from $153 billion in the fourth quarter of 2002. The decline largely resulted from a net outflow of $56 billion from money market funds, which reversed a $117 billion net inflow in the previous quarter. In the low interest-rate environment in the United States, the net outflow from U.S. money market funds was $69 billion. Several Asia-Pacific countries also experienced net outflows from money market funds, while European countries collectively saw strong net inflows. Equity funds posted a small outflow of $14 billion in the first quarter, with weakness evident in the United Sates, Canada, and most European countries. In contrast, Asia-Pacific countries eked out a small net inflow. Balanced/mixed funds experienced a small net outflow.

Net Sales of Mutual Funds Worldwide
(billions of U.S. dollars)

		2001		2002		2002:Q1		2002:Q2		2002:Q3		2002:Q4		2002:Q4
All Funds		892		190		97		-15		-45		153		13
	Equity	151		40		80		21		-64		3		-14
	Bond	199		118		28		9		48		32		87
	Money Market	529		13		-27		-57		-20		117		-56
	Balanced/Mixed	5		-4		7		6		-14		-4		-4
	Other	9		23		9		5		4		5		0

Note: Twenty-three countries reported net sales in 2001, 26 countries reported in 2002:Q1, 25 countries reported in 2002:Q2 and 2002:Q3, 26 countries reported in 2002:Q4, and 27 countries reported in 2003:Q1. Assets of reporting countries represented 85 percent of assets of all countries at the end of 2003:Q1. Net sales are new sales plus reinvested dividends less redemptions plus net exchanges. Components may not sum to the total because of rounding.

Net sales at bond funds were a robust $87 billion in the first quarter of 2003 and represented 3.6 percent of assets of those 27 countries reporting net flow data. The first quarter pace, if maintained for a full year, would far outstrip net sales in 2001, a year of strong inflows. The strength in net sales was widespread, with 22 countries experiencing inflows to bond funds.

At the end of first quarter of 2003, assets of equity funds represented 36 percent of all worldwide mutual fund assets. The asset share of money market funds was 29 percent, while that of bond funds was 24 percent.

Composition of Worldwide Mutual Fund Assets By Type of Fund, 2003:Q1
(percent of total assets, end of quarter)

Note: Components do not sum to 100 percent because of rounding.

By region, 59 percent of worldwide assets were in the Americas at the end of the first quarter of 2003, 31 percent were in Europe, and 10 percent in Africa and Asia/Pacific.

Composition of Worldwide Mutual Fund Assets By Region, 2003:Q1
(percent of total assets, end of quarter)

The number of mutual funds worldwide stood at 53,150 at the end of the first quarter of 2003. By type of fund, 43 percent were equity funds, 22 percent were bond funds, 21 percent were balanced/mixed funds, and 9 percent were money market funds.

Composition of Worldwide Mutual Funds By Type of Fund, 2003:Q1
(percent of funds, end of quarter)

Note: Components do not sum to 100 percent because of rounding.

Total Net Assets, 1998-2003:Q1
(billions of U.S. dollars, end of period)

		1998	1999	2000	2001	2002:Q1	2002:Q2	2002:Q3	2002:Q4	2003:Q1
All Reporting Countries1		9,299	11,391	11,867	11,635	11,763	11,559	10,663	11,217	11,210
	Equity	4,137	5,878	5,962	5,132	5,240	4,814	3,971	4,173	3,999
	Bond	2,173	2,104	2,077	2,203	2,201	2,336	2,395	2,499	2,642
	Money Market	2,071	2,287	2,480	2,982	2,973	3,027	3,025	3,185	3,197
	Balanced/Mixed	810	971	1,022	938	944	951	855	907	903
	Other	58	55	190	189	195	205	190	202	213
Countries Reporting in Every Period2		9,024	11,023	11,110	10,865	11,030	10,778	9,910	10,412	10,378
	Equity	4,017	5,713	5,697	4,885	5,027	4,598	3,772	3,965	3,791
	Bond	2,108	2,043	1,982	2,120	2,136	2,259	2,317	2,422	2,562
	Money Market	2,066	2,282	2,402	2,901	2,886	2,933	2,929	3,080	3,083
	Balanced/Mixed	781	939	965	888	904	908	815	862	859
	Other	51	47	64	71	77	80	76	82	84

Source: National mutual fund associations; Fédération Européenne des Fonds et Sociétés d'Investissement (FEFSI) provides data for all European countries except Romania, Russia, and Turkey.
¹Components may not sum to total because of rounding or unclassified funds.
²Number of countries is 25. Components may not sum to total because of rounding.

Net Sales, ¹ 2000-2003:Q1
(billions of U.S. dollars)

		2000	2001	2002	2002:Q1	2002:Q2	2002:Q3	2002:Q4	2003:Q1
All Reporting Countries2		875	892	190	97	-15	-45	153	13
	Equity	584	151	40	80	21	-64	3	-14
	Bond	-72	199	118	28	9	48	32	87
	Money Market	198	529	13	-27	-57	-20	117	-56
	Balanced/Mixed	9	5	-4	7	6	-14	-4	-4
	Other	0	9	23	9	5	4	5	0
Countries Reporting in Every Period3		602	687	155	68	-20	-33	142	-7
	Equity	537	85	29	69	16	-60	3	-7
	Bond	-79	134	114	16	12	57	29	65
	Money Market	170	468	8	-29	-57	-22	116	-62
	Balanced/Mixed	-26	-9	-1	10	7	-10	-8	-5
	Other	0	9	5	2	2	1	1	2

Source: National mutual fund associations; Fédération Européenne des Fonds et Sociétés d'Investissement (FEFSI) provides data for all European countries except Romania, Russia, and Turkey.
¹Net sales are new sales plus reinvested dividends less redemptions plus net exchanges.
²Components may not sum to total because of rounding or unclassified funds.
³Number of countries is 17. Components may not sum to total because of rounding.

Number of Funds, 1998-2003: Q1
(end of period)

		1998	1999	2000	2001	2002:Q1	2002:Q2	2002:Q3	2002:Q4	2003:Q1
All Reporting Countries1		50,365	52,767	51,557	52,589	53,105	52,413	52,979	53,040	53,150
	Equity	15,465	22,463	20,337	22,329	22,748	22,847	22,969	22,845	22,617
	Bond	11,261	15,491	13,113	12,012	12,006	11,573	11,646	11,503	11,554
	Money Market	3,050	6,739	4,648	4,188	4,207	4,108	4,226	4,346	4,521
	Balanced/Mixed	5,754	6,375	11,110	11,110	11,283	11,032	11,266	11,183	11,180
	Other	514	612	968	1,259	1,160	1,117	1,099	1,258	1,329
Countries Reporting in Every Period2		34,337	35,989	39,367	41,866	42,045	42,297	42,602	42,405	42,162
	Equity	14,463	15,666	18,637	20,740	20,963	21,003	21,099	20,817	20,603
	Bond	10,867	10,884	10,176	9,843	9,850	9,904	9,957	9,947	9,907
	Money Market	2,921	2,701	2,786	2,729	2,715	2,683	2,686	2,674	2,666
	Balanced/Mixed	5,593	6,149	6,926	7,514	7,532	7,710	7,775	7,725	7,681
	Other	493	589	842	1,040	985	997	1,085	1,242	1,305

Source: National mutual fund associations; Fédération Européenne des Fonds et Sociétés d'Investissement (FEFSI) provides data for all European countries except Romania, Russia, and Turkey.
¹Components may not sum to total because of unclassified funds.
²Number of countries is 24.