Worldwide Mutual Fund Assets and Flows
Second Quarter 2005

Washington, DC, November 23, 2005 - Mutual fund assets worldwide edged up to $16.41 trillion at the end of the second quarter of 2005. Net cash flow to all funds worldwide was $166 billion in the second quarter of 2005, compared with $215 billion in the first quarter. Inflows to long-term funds slowed, despite an uptick in balanced fund inflows. Money market fund flows essentially netted to zero worldwide in the quarter, because outflows in the Americas were offset by inflows in all other regions.

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 2005 contains statistics from 41 countries.

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

Positive stock market performance in more than four-fifths of reporting countries and ongoing net cash flow helped increase mutual fund assets in many regions in the second quarter of 2005. In aggregate, worldwide mutual fund assets edged up only 1.6 percent, in part because of little appreciation in stock values 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 5.8 percent, compared with a slight decline of 1.3 percent on a U.S.-dollar-denominated basis. The bulk of countries reporting had increases in assets measured in local currency in the second quarter.

On a U.S.-dollar-denominated basis, mutual fund assets in each investment category were little changed in the second quarter. Worldwide assets of equity funds were $7.1 trillion at the end of the second quarter of 2005, down slightly (1.3 percent) from the first quarter, mainly reflecting the appreciation of the dollar. Bond fund assets, with $3.3 trillion worldwide, were essentially unchanged over the second quarter. Assets of balanced/mixed funds edged up a bit (2.1 percent) in the second quarter of 2005. The largest change occurred in money market fund assets, which decreased 5.8 percent to $3.1 trillion worldwide in the second quarter of 2005.

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

Net cash flow to mutual funds worldwide was $166 billion in the second quarter of 2005, compared with $215 billion in the first quarter. Equity fund flows worldwide slowed to $65 billion in the second quarter, compared with $103 billion in the first quarter. However, equity fund inflows remained widespread across regions in the second quarter: The Americas reported net inflows of $31 billion, while Europe reported net inflows of $8 billion, and the Asia/Pacific and African regions, $27 billion. Balanced fund flows more than doubled their first quarter pace, rising to $26 billion in the second quarter, largely as a result of sharply reduced outflows in Brazil (which have been largely driven by a regulatory change).

Net cash flow to bond funds slowed to $49 billion in the second quarter of 2005, about half the first-quarter pace of $99 billion. This development reflects a reduction of net flows into bond funds in Brazil (from an elevated first quarter pace that was largely driven by a regulatory change) and a slowdown in net inflows in Europe. At the same time, bond fund inflows increased in the United States.

The essentially zero worldwide flow in money market funds occurred as a result of ongoing outflows in the United States, Greece, and Italy that were about offset by inflows reported in other countries, in particular, France, which reported a net inflow of $15 billion.

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

		2003		2004				2005
		Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
All Funds		65	73	248	22	22	166	215	166
	Equity	102	116	142	75	40	100	103	65
	Bond	6	-4	58	-12	19	43	99	49
	Money Market	-76	-67	5	-58	-57	-10	-21	*
	Balanced/Mixed	27	23	40	4	13	24	11	26
	Other	6	5	3	13	5	8	22	25

* Less than $0.5 billion.

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 and 2005:Q2. Assets of reporting countries represented 92 percent of assets of all countries at the end of 2005:Q2. Net sales are new sales plus reinvested dividends less redemptions plus net exchanges. Components may not sum to the total because of rounding.

Equity fund assets represented the bulk of all worldwide mutual fund assets: at the end of the second quarter of 2005, 43 percent of worldwide mutual fund assets were equity funds. The asset share of money market funds was 19 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:Q2
(percent)

Note: Other/unclassified includes the total net assets of Australia and Ireland.

By region, 55 percent of worldwide assets were in the Americas in the second quarter of 2005, 34 percent were in Europe, and 11 percent in Africa and Asia/Pacific.

Worldwide Mutual Fund Assets by Region, 2005:Q2
(percent)

The number of mutual funds worldwide stood at 55,920 at the end of the second quarter of 2005. By type of fund, 41 percent were equity funds, 24 percent were bond funds, 20 percent were balanced/mixed funds, and 6 percent were money market funds.

Worldwide Mutual Fund Assets by Type of Fund, 2005:Q2
(percent)

Note: Other/unclassified includes total funds in Ireland.

Total Net Assets, 1999 - 2005:Q2
(billions of U.S. dollars, end of period)

		1999	2000	2001	2002	2003	2004		2005
							Q3	Q4	Q1	Q2
All Reporting Countries1		11,762	11,871	11,655	11,324	14,048	14,648	16,165	16,151	16,406
	Equity	5,993	5,962	5,134	4,204	5,923	6,350	7,219	7,221	7,129
	Bond	2,156	2,077	2,212	2,534	3,047	3,049	3,313	3,341	3,334
	Money Market	2,396	2,483	2,986	3,190	3,206	3,215	3,323	3,270	3,080
	Balanced/Mixed	967	1,022	942	918	1,198	1,277	1,445	1,427	1,457
	Other	192	190	190	229	311	345	398	416	214
Countries Reporting in Every Period2		11,431	11,452	11,199	10,767	13,300	13,836	15,246	15,231	14,767
	Equity	5,828	5,809	5,007	4,084	5,766	6,189	7,031	7,034	6,946
	Bond	2,095	2,025	2,152	2,462	2,953	2,961	3,217	3,249	3,237
	Money Market	2,390	2,475	2,970	3,159	3,157	3,148	3,254	3,200	3,008
	Balanced/Mixed	935	962	888	860	1,128	1,208	1,364	1,347	1,378
	Other	183	181	182	202	296	330	380	401	199

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				2005
					Q1	Q2	Q3	Q4	Q1	Q2
All Reporting Countries2		904	278	317	248	22	22	166	215	166
	Equity	151	66	283	142	75	40	100	103	65
	Bond	196	130	177	58	-12	19	43	99	49
	Money Market	531	53	-212	5	-58	-57	-10	-21	0
	Balanced/Mixed	8	6	56	40	4	13	24	11	26
	Other	19	23	14	3	13	5	8	22	25
Countries Reporting in Every Period3		784	240	165	182	-14	15	124	128	127
	Equity	115	55	250	123	62	31	83	76	59
	Bond	144	121	86	31	-20	20	31	32	35
	Money Market	515	49	-218	-8	-62	-50	-11	-20	5
	Balanced/Mixed	1	10	40	33	5	12	19	33	23
	Other	9	5	6	3	1	2	2	7	6

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:Q2
(end of period)

		1999	2000	2001	2002	2003	2004		2005
							Q3	Q4	Q1	Q2
All Reporting Countries1		52,746	51,692	52,849	54,110	54,569	54,990	54,984	55,095	55,920
	Equity	22,453	20,381	22,348	22,974	22,688	22,555	22,364	22,796	23,043
	Bond	15,474	13,128	12,183	11,619	11,886	13,210	13,309	13,127	13,210
	Money Market	6,745	4,692	4,277	4,394	4,974	3,702	3,623	3,618	3,598
	Balanced/Mixed	6,375	11,110	11,155	11,228	11,465	11,549	11,603	11,111	11,295
	Other	612	1,000	1,195	1,310	1,578	1,919	1,997	2,364	2,659
Countries Reporting in Every Period2		35,962	39,367	41,620	42,393	41,689	42,181	42,356	42,093	42,530
	Equity	15,656	18,637	20,630	20,808	20,018	19,921	19,920	19,971	20,052
	Bond	10,867	10,176	9,830	9,946	9,847	9,860	9,961	10,004	10,023
	Money Market	2,701	2,786	2,727	2,674	2,652	2,930	2,899	2,901	2,867
	Balanced/Mixed	6,149	6,926	7,500	7,723	7,857	8,029	8,095	7,674	7,970
	Other	589	842	933	1,242	1,315	1,441	1,481	1,543	1,618

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.