Worldwide Mutual Fund Assets and Flows
Second Quarter 2002

Washington, DC, October 29, 2002 - Mutual fund assets worldwide stood at $11.56 trillion at the end of second quarter of 2002, down 1.7 percent since the end of the first quarter, according to information compiled by the Investment Company Institute on behalf of the International Investment Funds Association, an organization of national mutual fund associations. The data collection for the second quarter contains statistics from 36 countries. (Note: These data may have been revised in subsequent releases.)

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

The second-quarter decline in assets was moderated by weakness in the U.S. dollar. Measured in domestic currencies, assets in 25 of the 36 reporting countries moved lower in the second quarter. However, only eight of the countries posted lower dollar-valued assets, as the drop in the dollar converted non-dollar-denominated assets in many countries into higher dollar values.

Assets of equity funds were $4.82 trillion at the end of the second quarter, down 8.1 percent since the end of the first quarter. The decline reflected falling stock prices throughout the world. Depreciation in the U.S dollar, however, moderated the magnitude of the decrease, measured in U.S. dollars. Assets of other types funds rose over the quarter. Bond funds posted a 6.1 percent gain in assets, while assets of money market funds and balanced/mixed funds rose 1.8 percent and 0.7 percent, respectively.

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

At the end of the second quarter of 2002, assets of equity funds represented 42 percent of all worldwide mutual fund assets. Money market funds accounted for 26 percent; bond funds, 20 percent; balanced/mixed funds, 8 percent; and other/unclassified, 4 percent.

Composition of Worldwide Mutual Fund Assets, Second Quarter 2002
(percent of total assets, end of quarter)

Mutual funds collectively experienced an outflow of $16 billion in the second quarter of 2002. Only money market funds, however, saw redemptions exceed sales and, within this group of funds, the $57 billion outflow was concentrated in the United States. Money market funds also experienced an outflow in the first quarter amounting to $27 billion. Despite weakness in stock markets, equity funds posted an inflow of $21 billion in the second quarter, down from $80 billion in the first quarter. Bond and balanced/mixed funds saw small inflows in the second quarter.

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

		2001:H1		2001:H2		2002:Q1		2002:Q2
All Funds		580		313		98		-16
	Equity	126		25		80		21
	Bond	113		86		28		9
	Money Market	329		200		-27		-57
	Balanced/Mixed	7		-2		7		6
	Other	4		5		9		5
Note: Before 2002, net sales were reported semiannually. Twenty-four countries reported net sales in 2001:H1, 23 countries reported in 2001:H2, 26 countries reported in 2002:Q1, and 25 countries reported in 2002:Q2. Assets of reporting countries represented 86 percent of assets of all countries at the end of 2002:Q2. Net sales are new sales plus reinvested dividends less redemptions plus net exchanges. Components may not add to the total because of rounding.

The number of funds totaled 52,428 at the end of the second quarter of 2002. Of these, 44 percent were equity funds; 22 percent, bond funds; 21 percent, balanced/mixed funds; 8 percent, money market funds; and 5 percent, other/unclassified funds.

Composition of Worldwide Mutual Funds, 2002:Q2
(percent of funds, end of quarter)

Total Net Assets, 1998-2002
(billions of U.S. dollars, end of period)

		1998	1999	2000	2001:Q2	2001:Q3	2001:Q4	2002:Q1	2002:Q2
All Reporting Countries		9,299	11,391	11,867	11,622	10,894	11,635	11,763	11,559
	Equity	4,137	5,878	5,962	5,494	4,534	5,132	5,242	4,816
	Bond	2,173	2,104	2,077	2,080	2,189	2,203	2,200	2,335
	Money Market	2,071	2,287	2,480	2,760	2,946	2,982	2,973	3,026
	Balanced-Mixed	810	971	1,022	954	892	938	944	951
	Other	58	55	190	180	168	189	194	204
Countries Reporting in Every Period1,2		9,025	11,025	11,112	10,892	10,254	10,867	11,033	10,780
	Equity	4,017	5,713	5,697	5,243	4,353	4,885	5,029	4,600
	Bond	2,109	2,044	1,984	1,996	2,121	2,122	2,137	2,260
	Money Market	2,066	2,282	2,403	2,685	2,867	2,901	2,887	2,933
	Balanced-Mixed	782	940	965	903	849	888	903	908
	Other	51	47	64	66	64	71	76	80
Source: National mutual fund associations in each country. Fédération Européenne des Fonds et Sociétés d'Investissement (FEFSI) provides data for all European countries except for Romania and Russia. A listing of associations can be found at http://www.ici.org/aboutfunds/addl_resources_intl.html.
1 Components may not sum to total because of rounding or unclassified funds.
2 Number of countries is 26.

Net Sales,¹ 2000-2002
(billions of U.S. dollars)

		2000:H1	2000:H2	2001:H1	2001:H2	2002:Q1	2002:Q2
All Reporting Countries		509	365	580	313	98	-16
	Equity	375	209	126	25	80	21
	Bond	-85	13	113	86	28	9
	Money Market	122	75	329	200	-27	-57
	Balanced-Mixed	5	4	7	-2	7	6
	Other	-1	1	4	5	9	5
Countries Reporting in Every Period2,3		337	265	454	233	68	-23
	Equity	355	181	77	7	69	15
	Bond	-89	10	82	52	16	11
	Money Market	87	83	293	175	-29	-57
	Balanced-Mixed	-15	-11	-3	-6	10	7
	Other	-1	2	4	5	2	2
Source: National mutual fund associations in each country. Fédération Européenne des Fonds et Sociétés d'Investissement (FEFSI) provides data for all European countries except for Romania and Russia. A listing of associations can be found at http://www.ici.org/aboutfunds/addl_resources_intl.html.
1 Net sales are new sales plus reinvested dividends less redemptions plus net exchanges. Before 2002, net sales were reported semiannually.
2 Components may not sum to total because of rounding or unclassified funds.
3 Number of countries is 17.

Number of Funds, 1998-2002
(end of period)

		1998	1999	2000	2001:Q2	2001:Q3	2001:Q4	2002:Q1	2002:Q2
All Reporting Countries1		50,365	52,767	51,574	53,235	52,744	52,589	53,111	52,428
	Equity	15,465	22,463	20,348	21,715	22,004	22,329	22,766	22,873
	Bond	11,261	15,491	13,115	12,773	12,430	12,012	12,004	11,574
	Money Market	3,050	6,739	4,650	4,424	4,464	4,188	4,207	4,107
	Balanced-Mixed	5,754	6,375	11,112	11,554	11,006	11,110	11,281	11,030
	Other	514	612	968	1,205	1,196	1,259	1,152	1,108
Countries Reporting in Every Period2		34,403	36,076	39,470	35,673	41,314	41,955	42,142	42,398
	Equity	14,477	15,687	18,672	17,332	20,378	20,769	21,011	21,057
	Bond	10,891	10,915	10,205	8,348	9,917	9,868	9,875	9,929
	Money Market	2,926	2,710	2,804	2,512	2,750	2,748	2,734	2,698
	Balanced-Mixed	5,616	6,175	6,947	7,103	7,300	7,530	7,545	7,726
	Other	493	589	842	378	969	1,040	977	988
Source: National mutual fund associations in each country. Fédération Européenne des Fonds et Sociétés d'Investissement (FEFSI) provides data for all European countries except for Romania and Russia. A listing of associations can be found at http://www.ici.org/aboutfunds/addl_resources_intl.html.
1 Components may not sum to total because of unclassified funds.
2 Number of countries is 25.