Worldwide Mutual Fund Assets And Flows
Second Quarter 2004

Washington, DC, November 9, 2004 - Mutual fund assets worldwide were $14.41 trillion at the end of the second quarter, edging down 1.0 percent compared with the end of the first quarter of 2004. Over the second quarter of 2004, stock market returns were mixed across nations, with about half of the reporting countries experiencing negative stock price returns. Net cash flow to all funds worldwide decreased from $246 billion in the first quarter of 2004 to $18 billion in the second quarter, pulled down by lower inflows in equity and balanced funds and outflows from bond and money market funds.

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 2004 contains statistics from 40 countries, now including Slovakia.

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

In the second quarter of 2004, total assets of mutual funds worldwide were down slightly as modest increases in equity and balanced fund assets could not offset declines in bond and money market fund assets. Worldwide assets of equity funds increased 1.4 percent during the second quarter, posting $6.3 trillion at quarter-end. Stock price indexes rose in about half of the reporting countries in the second quarter and net cash flow into equity funds registered a sizable $75 billion in the quarter (although smaller than the first quarter's inflow of $143 billion). All regions reported net inflows into equity funds in the second quarter, with $38 billion occurring in the Americas, $24 billion in Europe, and $14 billion in the Asian/Pacific and African regions. Assets of balanced/mixed funds were about unchanged in the second quarter of 2004, with reported small net inflows of $4 billion.

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

*Excludes Netherlands from 2004:Q1 and 2004:Q2 because data are not available at this time for 2004:Q2.

Bond fund assets worldwide fell 2.9 percent in the second quarter of 2004, pulled down in part by a net outflow of $11 billion. In the second quarter of 2004, the Americas reported large net outflows from bond funds, which is typical when interest rates are rising. The Asian/Pacific region reported a small net outflow from bond funds, while Europe and South Africa posted net inflows.

Net Sales of Mutual Funds Worldwide (billions of U.S. dollars)
		2002:Q3	2002:Q4	2003:Q1		2003:Q2	2003:Q3	2003:Q4	2004:Q1		2004:Q2
All Funds		-27	168	44		136	65	73	246		18
	Equity	-58	12	-9		74	102	116	143		75
	Bond	52	37	86		88	6	-4	58		-11
	Money Market	-12	115	-31		-38	-76	-67	3		-63
	Balanced/Mixed	-12	-1	-3		9	28	23	40		4
	Other	4	5	0		3	6	5	3		13
Note: Twenty-seven countries reported net sales in 2002:Q1, 2002:Q2, and 2002:Q3, 28 countries reported in 2002:Q4, 29 countries reported in 2003:Q1, and 30 countries reported in 2003:Q2, 2003:Q3, 2003:Q4, and 2004:Q1; and 31 countries reported in 2004:Q2.Assets of reporting countries represented 93 percent of assets of all countries at the end of 2004:Q2. 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 fell 2.0 percent in the second quarter of 2004, pulled down by a total net outflow of $63 billion in the quarter. The bulk of the outflow occurred in U.S. money market funds (reporting an outflow of $59 billion), although the European and Asia/Pacific regions also reported outflows.

At the end of the second quarter of 2004, assets of equity funds represented 44 percent of all worldwide mutual fund assets. The asset share of money market funds was 23 percent, while that of bond funds was 20 percent. Balanced/mixed funds represented 9 percent of the total.

Percent of Worldwide Mutual Fund Assets by Type of Fund, 2004:Q2

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

By region, 57 percent of worldwide assets were in the Americas in the second quarter of 2004, 33 percent were in Europe, and 10 percent in Africa and Asia/Pacific.

Percent of Worldwide Mutual Fund Assets by Region, 2004:Q2

At the end of the second quarter of 2004, the number of mutual funds worldwide stood at 54,126. By type of fund, 41 percent were equity funds, 22 percent were bond funds, 21 percent were balanced/mixed funds, and 9 percent were money market funds.

Percent of Worldwide Mutual Funds by Type of Fund, 2004:Q2

Total Net Assets, 1999-2004:Q2
(billions of U.S. dollars, end of period)

		1999	2000	2001	2002	2003:Q3	2003:Q4	2004:Q1	2004:Q2
All Reporting Countries1		11,391	11,871	11,655	11,324	12,831	14,052	14,558	14,406
	Equity	5,878	5,962	5,134	4,204	5,094	5,926	6,267	6,307
	Bond	2,104	2,077	2,212	2,529	2,914	3,040	2,986	2,876
	Money Market	2,287	2,483	2,986	3,190	3,185	3,208	3,344	3,274
	Balanced/Mixed	971	1,022	942	923	1,065	1,205	1,242	1,233
	Other	55	190	190	229	262	311	333	321
Countries Reporting in Every Period2		11,023	11,110	10,865	10,410	11,797	12,781	13,224	13,170
	Equity	5,713	5,697	4,885	3,961	4,827	5,577	5,902	5,992
	Bond	2,043	1,982	2,120	2,422	2,807	2,901	2,845	2,765
	Money Market	2,282	2,402	2,901	3,080	3,045	3,047	3,168	3,098
	Balanced/Mixed	939	965	888	865	1,014	1,134	1,174	1,175
	Other	47	64	71	82	105	121	134	140

Source National mutual fund associations; Fédération Européenne des Fonds et Sociétés d'Investissement (FEFSI) provides data for all European countries except Romania and Russia.
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 2001-2004:Q2
(billions of U.S. dollars)

		2001	2002	2003	2003:Q2	2003:Q3	2003:Q4	2004:Q1	2004:Q2
All Reporting Countries2		894	279	318	136	65	73	246	18
	Equity	151	66	283	74	102	116	143	75
	Bond	199	130	176	88	6	-4	58	-11
	Money Market	530	52	-212	-38	-76	-67	3	-63
	Balanced/Mixed	5	7	57	9	28	23	40	4
	Other	10	23	14	3	6	5	3	13
Countries Reporting in Every Period3		784	240	165	91	22	25	180	-18
	Equity	115	55	250	69	89	94	123	62
	Bond	144	121	85	52	-14	-20	31	-19
	Money Market	515	48	-218	-39	-76	-66	-10	-66
	Balanced/Mixed	1	11	41	8	22	16	33	5
	Other	9	5	6	1	2	1	1	1

Source: National mutual fund associations; Fédération Européenne des Fonds et Sociétés d'Investissement (FEFSI) provides data for all European countries except Romania and Russia.
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 18. Components may not sum to total because of rounding.

Number of Funds, 1999-2004:Q2
(end of period)

		1999	2000	2001	2002	2003:Q3	2003:Q4	2004:Q1	2004:Q2
All Reporting Countries1		52,746	51,692	52,849	54,110	54,120	54,650	55,261	54,126
	Equity	22,453	20,381	22,348	22,975	22,481	22,738	22,562	22,188
	Bond	15,474	13,128	12,183	11,617	11,968	11,890	9,961	11,671
	Money Market	6,745	4,692	4,277	4,394	4,828	4,974	4,691	5,035
	Balanced/Mixed	6,375	11,110	11,155	11,229	11,456	11,499	11,662	11,603
	Other	612	1,000	1,195	1,310	1,414	1,571	1,661	1,614
Countries Reporting in Every Period2		35,962	39,367	41,620	42,393	41,941	41,690	42,178	41,875
	Equity	15,656	18,637	20,630	20,809	20,231	20,020	19,878	19,804
	Bond	10,867	10,176	9,830	9,944	9,923	9,846	7,946	9,780
	Money Market	2,701	2,786	2,727	2,674	2,653	2,651	2,405	2,934
	Balanced/Mixed	6,149	6,926	7,500	7,724	7,810	7,858	7,894	7,937
	Other	589	842	933	1,242	1,324	1,315	1,366	1,420

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