Worldwide Mutual Fund Assets and Flows
Second Quarter 2003

Washington, DC, October 9, 2003 - Mutual funds worldwide experienced sharp increases in assets and net flows during the second quarter of 2003. Total assets of all mutual funds rose to $12.36 trillion, an increase of 10.3 percent. The net flow of new investments to all funds was $109 billion in the second quarter, up from $12 billion in the first quarter. (Note: These data may have been revised in subsequent releases.)

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 second quarter of 2003 contains statistics from 38 countries.

Total assets of mutual funds worldwide were boosted by rising equity prices and continued strong demand for bond funds. Measured in local currencies, fund assets increased in the second quarter in almost all countries. Weakness in the U.S. dollar also contributed to the dollar-measured increase in assets.

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

Worldwide assets of equity funds stood at $4.7 trillion at the end of the second quarter, up 18.4 percent for the quarter. Stock price indexes rose in almost every country in the second quarter, with most indexes showing double-digit gains. These increases contrasted with widespread weakness in equity prices during the first quarter. Assets of balanced/mixed funds rose 12.3 percent for the quarter, while bond fund assets were up 8.3 percent. Money market fund assets posted an increase of 0.6 percent.

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

Net cash flow to equity funds was $69 billion in the second quarter, reversing an outflow of $14 billion in the first quarter. The turnaround in net flow occurred primarily among funds in Europe and the United States. Equity funds in the Asia/Pacific region again recorded an inflow in the second quarter, although the inflow was down slightly from that in the first quarter.

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

		2002:Q1		2002:Q2		2002:Q3		2002:Q4		2003:Q1		2003:Q2
All Funds		97		-15		-45		153		12		109
	Equity	80		21		-64		3		-14		69
	Bond	28		9		48		32		87		79
	Money Market	-27		-57		-20		117		-56		-47
	Balanced/Mixed	7		6		-14		-4		-4		6
	Other	9		5		4		5		0		3

Note: Twenty-six countries reported net sales in 2002:Q1, 25 countries reported in 2002:Q2 and 2002:Q3, 26 countries reported in 2002:Q4, 27 countries reported in 2003:Q1, and 28 countries reported in 2003:Q2. Assets of reporting countries represented 85 percent of assets of all countries at the end of 2003:Q2. Net sales are new sales plus reinvested dividends less redemptions plus net exchanges. Components may not sum to the total because of rounding.

The net flow to bond funds in the second quarter of 2003 was strong at $79 billion and compared favorably with the $87 billion inflow in the first quarter. U.S. and European bond funds again received sizable new investments in the second quarter, while bond funds in the Asia/Pacific region posted a small outflow. Balanced/mixed funds recorded an inflow in the second quarter. The outflow from money market funds moderated somewhat in the second quarter to $47 billion from $56 billion in the first quarter. The outflow in the second quarter was largely concentrated in U.S. money market funds.

At the end of second quarter of 2003, assets of equity funds represented 38 percent of all worldwide mutual fund assets. The asset share of money market funds was 26 percent, while that of bond funds was 23 percent.

Composition of Worldwide Mutual Fund Assets By Type of Fund, 2003:Q2
(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 second quarter of 2003, 32 percent were in Europe, and 9 percent in Africa and Asia/Pacific.

Composition of Worldwide Mutual Fund Assets By Region, 2003:Q2
(percent of total assets, end of quarter)

The number of mutual funds worldwide stood at 53,532 at the end of the second quarter of 2003. By type of fund, 42 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 Fund By Type of Funds, 2003:Q2
(percent of total assets, end of quarter)

Total Net Assets, 1998-2003:Q2
(billions of U.S. dollars, end of period)

		1998	1999	2000	2001	2002:Q2	2002:Q3	2002:Q4	2003:Q1	2003:Q2
All Reporting Countries1		9,299	11,391	11,867	11,635	11,559	10,663	11,301	11,208	12,364
	Equity	4,137	5,878	5,962	5,132	4,814	3,971	4,206	3,998	4,735
	Bond	2,173	2,104	2,077	2,203	2,336	2,395	2,514	2,642	2,860
	Money Market	2,071	2,287	2,480	2,982	3,027	3,025	3,187	3,197	3,215
	Balanced/Mixed	810	971	1,022	938	951	855	916	902	1,013
	Other	58	55	190	189	205	190	228	213	244
Countries Reporting in Every Period2		9,024	11,023	11,110	10,865	10,778	9,910	10,412	10,377	11,405
	Equity	4,017	5,713	5,697	4,885	4,598	3,772	3,965	3,790	4,494
	Bond	2,108	2,043	1,982	2,120	2,259	2,317	2,422	2,562	2,769
	Money Market	2,066	2,282	2,402	2,901	2,933	2,929	3,080	3,083	3,082
	Balanced/Mixed	781	939	965	888	908	815	862	858	964
	Other	51	47	64	71	80	76	82	84	97

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:Q2
(billions of U.S. dollars)

		2000	2001	2002	2002:Q2	2002:Q3	2002:Q4	2003:Q1	2003:Q2
All Reporting Countries2		875	892	190	-15	-45	153	12	109
	Equity	584	151	40	21	-64	3	-14	69
	Bond	-72	199	118	9	48	32	87	79
	Money Market	198	529	13	-57	-20	117	-56	-47
	Balanced/Mixed	9	5	-4	6	-14	-4	-4	6
	Other	0	9	23	5	4	5	0	3
Countries Reporting in Every Period3		602	687	155	-20	-33	142	-7	68
	Equity	537	85	29	16	-60	3	-7	64
	Bond	-79	134	114	12	57	29	65	46
	Money Market	170	468	8	-57	-22	116	-62	-47
	Balanced/Mixed	-26	-9	-1	7	-10	-8	-5	5
	Other	0	9	5	2	1	1	2	1

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:Q2
(end of period)

		1998	1999	2000	2001	2002:Q2	2002:Q3	2002:Q4	2003:Q1	2003:Q2
All Reporting Countries1		50,365	52,767	51,557	52,589	52,413	52,979	53,720	53,136	53,532
	Equity	15,465	22,463	20,337	22,329	22,847	22,969	22,845	22,607	22,462
	Bond	11,261	15,491	13,113	12,012	11,573	11,646	11,503	11,552	11,744
	Money Market	3,050	6,739	4,648	4,188	4,108	4,226	4,346	4,520	4,755
	Balanced/Mixed	5,754	6,375	11,110	11,110	11,032	11,266	11,183	11,179	11,256
	Other	514	612	968	1,259	1,117	1,099	1,258	1,329	1,357
Countries Reporting in Every Period2		34,337	35,989	39,367	41,866	42,297	42,602	42,405	42,148	42,031
	Equity	14,463	15,666	18,637	20,740	21,003	21,099	20,817	20,593	20,383
	Bond	10,867	10,884	10,176	9,843	9,904	9,957	9,947	9,905	9,899
	Money Market	2,921	2,701	2,786	2,729	2,683	2,686	2,674	2,665	2,673
	Balanced/Mixed	5,593	6,149	6,926	7,514	7,710	7,775	7,725	7,680	7,756
	Other	493	589	842	1,040	997	1,085	1,242	1,305	1,320

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.