Worldwide Mutual Fund Assets And Flows
First Quarter 2005

Washington, DC, August 17, 2005 - In the first quarter of 2005, mutual fund assets worldwide were $16.13 trillion, about the same as at year-end 2004. Net cash flow to all funds worldwide picked up in the first quarter to $214 billion, compared with $166 billion in the fourth quarter last year. Long-term funds experienced increased inflows, primarily pulled up by strong bond inflows in Europe. Outflows from money market funds picked up a bit in the first quarter and were concentrated in the United States.

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 2005 contains statistics from 41 countries.

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

Despite positive stock market performance in more than three-quarters of reporting countries and ongoing net cash flow, mutual fund assets worldwide were little changed in the first quarter of 2005, in part because of essentially flat stock market performance in the United States and because growth in assets reported in U.S. dollars was muted due to the appreciation of the dollar. Indeed, mutual fund assets in Europe on a Euro-denominated basis rose 4.9 percent, compared with a slight decline of 0.1 percent on a U.S.-dollar-denominated basis. Many countries reported an increase in assets measured in local currency.

Worldwide assets of equity funds were $7.2 trillion at the end of the first quarter of 2005, essentially unchanged from year-end 2004. Net cash flow to equity funds worldwide was $103 billion in the first quarter, compared with $100 billion in the fourth quarter. The Americas reported net inflows of $51 billion into equity funds in the first quarter of 2005, while Europe reported net inflows of $37 billion, and the Asian/Pacific and African regions, $15 billion. Assets of balanced/mixed funds also were about unchanged in the first quarter of 2005, with reported net inflows of $11 billion.

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

Net cash flow to bond funds in the first quarter of 2005 more than doubled from their fourth quarter pace to $99 billion and bond fund assets worldwide increased 1.0 percent over the quarter. In the first quarter of 2005, the Americas, Europe, and South Africa reported inflows to bond funds, while the Asia and Pacific region reported outflows.

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

		2003			2004				2005
		Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
All Funds		22	22	73	248	22	22	166	214
	Equity	75	40	116	142	75	40	100	103
	Bond	-12	19	-4	58	-12	19	43	99
	Money Market	-58	-57	-67	5	-58	-57	-10	-21
	Balanced/Mixed	4	13	23	40	4	13	24	11
	Other	13	5	5	3	13	5	8	22
Note: Thirty countries reported in 2003:Q2, 2003:Q3, 2003:Q4, and 2004:Q1; 31 countries reported in 2004:Q2; 30 countries reported in 2004:Q3; 31 countries reported in 2004:Q4; and 32 countries reported in 2005:Q1. Assets of reporting countries represented 92 percent of assets of all countries at the end of 2005:Q1. Net sales are new sales plus reinvested dividends less redemptions plus net exchanges. Components may not sum to the total because of rounding.

Money market fund assets worldwide decreased 1.9 percent in the first quarter of 2005, with small reported net outflows of $21 billion in the quarter. The bulk of the outflow occurred in the Americas (notably, the United States reported a net outflow of $43 billion) and was offset in part by inflows reported in all other regions (with France reporting a net inflow of $17 billion).

At the end of the first quarter of 2005, assets of equity funds represented 45 percent of all worldwide mutual fund assets. The asset share of money market funds was 21 percent, while that of bond funds was 20 percent. Balanced/mixed funds represented 9 percent of the total.

Worldwide Mutual Fund Assets By Type Of Fund, 2005:Q1
(percent)

By region, 55 percent of worldwide assets were in the Americas in the first quarter of 2005, 35 percent were in Europe, and 11 percent in Africa and Asia/Pacific.

Worldwide Mutual Fund Assets by Region, 2005:Q1
(percent)

Note: Percentages do not add to 100 percent because of rounding.

At the end of the first quarter of 2005, the number of mutual funds worldwide stood at 54,702. By type of fund, 42 percent were equity funds, 24 percent were bond funds, 20 percent were balanced/mixed funds, and 7 percent were money market funds.

Worldwide Mutual Funds by Type of Fund, 2005:Q1
(percent)

Total Net Assets, 1999 - 2005:Q1
(billions of U.S. dollars, end of period)

		1999	2000	2001	2002	2003	2004			2005
							Q2	Q3	Q4	Q1
All Reporting Countries1		11,762	11,871	11,655	11,324	14,048	14,495	14,648	16,165	16,134
	Equity	5,993	5,962	5,134	4,204	5,924	6,349	6,350	7,219	7,218
	Bond	2,156	2,077	2,212	2,529	3,040	2,930	3,049	3,313	3,345
	Money Market	2,396	2,483	2,986	3,190	3,206	3,247	3,215	3,323	3,260
	Balanced/Mixed	967	1,022	942	923	1,204	1,243	1,277	1,445	1,421
	Other	192	190	190	229	311	332	345	398	414
Countries Reporting in Every Period2		11,431	11,452	11,199	10,767	13,299	13,707	13,836	15,246	15,214
	Equity	5,828	5,809	5,007	4,084	5,767	6,191	6,189	7,031	7,031
	Bond	2,095	2,025	2,152	2,456	2,946	2,844	2,961	3,217	3,253
	Money Market	2,390	2,475	2,970	3,159	3,157	3,181	3,148	3,254	3,190
	Balanced/Mixed	935	962	888	865	1,134	1,175	1,208	1,364	1,341
	Other	183	181	182	202	296	317	330	380	399

¹ Components may not sum to total because of rounding or unclassified funds.
² Number of countries is 26. Components may not sum to total because of rounding.

Source: National mutual fund associations; European Fund and Asset Management Association (EFAMA, formerly FEFSI) provides data for all European countries except Romania and Russia.

Net Sales,¹ 2001 - 2005:Q1
(billions of U.S. dollars)

		2001	2002	2003	2004	2004				2005
					Q4	Q1	Q2	Q3	Q4	Q1
All Reporting Countries2		904	239	317	73	248	22	22	166	214
	Equity	151	51	283	116	142	75	40	100	103
	Bond	196	145	176	-4	58	-12	19	43	99
	Money Market	531	12	-212	-67	5	-58	-57	-10	-21
	Balanced/Mixed	8	9	56	23	40	4	13	24	11
	Other	19	23	14	5	3	13	5	8	22
Countries Reporting in Every Period3		784	201	165	25	182	-14	15	124	127
	Equity	115	39	250	94	123	62	31	83	76
	Bond	144	136	85	-20	31	-20	20	31	32
	Money Market	515	8	-218	-66	-8	-62	-50	-11	-20
	Balanced/Mixed	1	13	41	16	33	5	12	19	32
	Other	9	5	6	1	0	0	0	0	7

¹ Net sales are new sales plus reinvested dividends less redemptions plus net exchanges.
² Components may not sum to total because of rounding or unclassified funds.
³ Number of countries is 18. Components may not sum to total because of rounding.

Source: National mutual fund associations; European Fund and Asset Management Association (EFAMA, formerly FEFSI) provides data for all European countries except Romania and Russia.

Number of Funds, 1999 - 2005:Q1
(end of period)

		1999	2000	2001	2002	2003	2004			2005
							Q2	Q3	Q4	Q1
All Reporting Countries1		52,746	51,692	52,849	54,110	54,570	54,577	54,990	54,986	54,702
	Equity	22,453	20,381	22,348	22,975	22,690	22,397	22,555	22,365	22,731
	Bond	15,474	13,128	12,183	11,617	11,885	13,017	13,212	13,310	13,183
	Money Market	6,745	4,692	4,277	4,394	4,973	3,773	3,700	3,623	3,612
	Balanced/Mixed	6,375	11,110	11,155	11,229	11,466	11,624	11,549	11,603	10,866
	Other	612	1,000	1,195	1,310	1,578	1,751	1,919	1,997	2,231
Countries Reporting in Every Period2		35,962	39,367	41,620	42,393	41,690	41,871	42,181	42,358	42,095
	Equity	15,656	18,637	20,630	20,809	20,020	19,802	19,921	19,921	19,972
	Bond	10,867	10,176	9,830	9,944	9,846	9,781	9,862	9,962	10,005
	Money Market	2,701	2,786	2,727	2,674	2,651	2,932	2,928	2,899	2,901
	Balanced/Mixed	6,149	6,926	7,500	7,724	7,858	7,936	8,029	8,095	7,674
	Other	589	842	933	1,242	1,315	1,420	1,441	1,481	1,543

¹ Components may not sum to total because of unclassified funds.
² Number of countries is 24.

Source: National mutual fund associations; European Fund and Asset Management Association (EFAMA, formerly FEFSI) provides data for all European countries except Romania and Russia.