Worldwide Mutual Fund Assets And Flows
Third Quarter 2002

Washington, DC, January 16, 2003 - Assets of worldwide mutual funds declined 7.9 percent in the third quarter of 2002 to $10.65 trillion. The Investment Company Institute compiles worldwide mutual fund statistics on behalf of the International Investment Funds Association, an organization of national mutual fund associations. The data collection for the third 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 third quarter decline in worldwide mutual fund assets primarily reflected global weakness in equity prices. Stock price indexes in virtually every one of the reporting countries moved lower in the quarter, with most decreasing more than 10 percent and some between 20 and 40 percent.

In this environment, equity fund assets fell 17.5 percent, with 29 reporting countries posting declines. At the end of the third quarter, assets of equity funds were $3.972 trillion, down from $4.816 trillion at the end of the second quarter.

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

Also contributing to the decline in equity fund assets in the third quarter was a net outflow of $64 billion from these funds. The outflow was largest among U.S. equity funds, but European equity funds also experienced a net outflow. In contrast, equity funds in Asia-Pacific countries recorded a net inflow, largely reflecting net sales by exchange-traded funds in Japan. Despite the outsized drop in stock prices, the net outflow for all countries was relatively small, amounting for the quarter to only 1.6 percent of average assets for the 25 countries reporting net sales.

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

		2001:H1		2001:H2		2002:Q1		2002:Q2		2002:Q3
All Funds		580		313		98		-16		-52
	Equity	126		25		80		21		-64
	Bond	113		86		28		9		48
	Money Market	329		200		-27		-57		-27
	Balanced / Mixed	7		-2		7		6		-14
	Other	4		5		9		5		4
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:Q3. Net sales are new sales plus reinvested dividends less redemptions plus net exchanges. Components may not add to the total because of rounding.

Assets of money market funds declined 0.3 percent in the third quarter to $3.016 trillion, reflecting an outflow of $27 billion from these funds. European money market funds continued to experience strong inflows during the third quarter. In the U.S., however, institutional investors reacted to the low level of yields on money funds by shifting to higher-yielding open-market instruments.

At the end of the third quarter, assets of equity funds represented 37 percent of all worldwide mutual fund assets, down from 42 percent at the end of the second quarter. The asset shares of money market and bond funds were up slightly in the third quarter.

Composition of Worldwide Mutual Fund Assets By Type of Fund, 2002:Q3
(percent of total assets, end of quarter)

The number of funds increased 1.1 percent in the third quarter to 52,988. The composition of the number by type of fund, however, was largely unchanged.

Composition of Worldwide Mutual Funds By Type of Fund, 2002:Q3
(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	2002:Q3
All Reporting Countries		9,299	11,391	11,867	11,622	10,894	11,635	11,763	11,559	10,654
	Equity	4,137	5,878	5,962	5,494	4,534	5,132	5,242	4,816	3,972
	Bond	2,173	2,104	2,077	2,080	2,189	2,203	2,200	2,335	2,395
	Money Market	2,071	2,287	2,480	2,760	2,946	2,982	2,973	3,026	3,016
	Balanced / Mixed	810	971	1,022	954	892	938	944	951	855
	Other	58	55	190	180	168	189	194	204	190
Countries Reporting in Every Period1,2		9,025	11,025	11,112	10,892	10,254	10,867	11,033	10,780	9,902
	Equity	4,017	5,713	5,697	5,243	4,353	4,885	5,029	4,600	3,774
	Bond	2,109	2,044	1,984	1,996	2,121	2,122	2,137	2,260	2,317
	Money Market	2,066	2,282	2,403	2,685	2,867	2,901	2,887	2,933	2,920
	Balanced / Mixed	782	940	965	903	849	888	903	908	815
	Other	51	47	64	66	64	71	76	80	76
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, Russia and Turkey.
1 Components may not sum to total because of rounding or unclassified funds.
2 Number of countries is 25.

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

		2000:H1	2000:H2	2001:H1	2001:H2	2002:Q1	2002:Q2	2002:Q3
All Reporting Countries		509	365	580	313	98	-16	-52
	Equity	375	209	126	25	80	21	-64
	Bond	-85	13	113	86	28	9	48
	Money Market	122	75	329	200	-27	-57	-27
	Balanced-Mixed	5	4	7	-2	7	6	-14
	Other	-1	1	4	5	9	5	4
Countries Reporting in Every Period2,3		337	265	454	233	68	-23	-45
	Equity	355	181	77	7	69	15	-60
	Bond	-89	10	82	52	16	11	56
	Money Market	87	83	293	175	-29	-57	-30
	Balanced-Mixed	-15	-11	-3	-6	10	7	-11
	Other	-1	2	4	5	2	2	0
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, Russia and Turkey.
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	2002:Q3
All Reporting Countries1		50,365	52,767	51,574	53,235	52,744	52,589	53,111	52,428	52,988
	Equity	15,465	22,463	20,348	21,715	22,004	22,329	22,766	22,873	22,979
	Bond	11,261	15,491	13,115	12,773	12,430	12,012	12,004	11,574	11,647
	Money Market	3,050	6,739	4,650	4,424	4,464	4,188	4,207	4,107	4,226
	Balanced-Mixed	5,754	6,375	11,112	11,554	11,006	11,110	11,281	11,030	11,264
	Other	514	612	968	1,205	1,196	1,259	1,152	1,108	1,099
Countries Reporting in Every Period2		34,403	36,076	39,470	35,673	41,314	41,955	42,142	42,398	42,611
	Equity	14,477	15,687	18,672	17,332	20,378	20,769	21,011	21,057	21,109
	Bond	10,891	10,915	10,205	8,348	9,917	9,868	9,875	9,929	9,958
	Money Market	2,926	2,710	2,804	2,512	2,750	2,748	2,734	2,698	2,686
	Balanced-Mixed	5,616	6,175	6,947	7,103	7,300	7,530	7,545	7,726	7,773
	Other	493	589	842	378	969	1,040	977	988	1,085
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, Russia and Turkey.
1 Components may not sum to total because of unclassified funds.
2 Number of countries is 24.