Worldwide Mutual Fund Assets And Flows
Third Quarter 2005

Washington, DC, February 9, 2006 - Mutual fund assets worldwide increased 5.4 percent to $17.28 trillion at the end of the third quarter of 2005. Net cash flow to all funds worldwide was a robust $305 billion in the third quarter of 2005, compared with $166 billion in the second quarter. Third-quarter inflows to long-term funds were up by 52 percent compared with their second-quarter pace. Money market fund flows swung strongly into positive territory with a $59 billion inflow worldwide, mainly resulting from inflows in the United States.

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 third quarter of 2005 contains statistics from 41 countries.

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

The stock markets in nearly every reporting country experienced positive performance in the third quarter. The strong stock market performance combined with the ongoing net cash flow boosted mutual fund assets in most countries in the third quarter of 2005. Growth in assets reported in U.S. dollars was slightly muted due to the appreciation of the dollar. Indeed, mutual fund assets in Europe on a Euro-denominated basis rose 6.9 percent, compared with 6.5 percent on a U.S.-dollar-denominated basis.

On a U.S.-dollar-denominated basis, mutual fund assets in each investment category increased in the third quarter. The largest increase occurred in worldwide assets of equity funds, which reached $7.7 trillion at the end of the third quarter of 2005, growing 7.8 percent over the quarter. Bond fund assets increased 3.5 percent in the third quarter to $3.5 trillion worldwide. Assets of balanced/mixed funds grew 5.5 percent. Money market fund assets also rose (2.5 percent), holding $3.2 trillion worldwide at the end of the third quarter.

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 $305 billion in the third quarter of 2005, with long-term funds and money market funds experiencing aggregate net inflows worldwide. Equity fund flows worldwide increased to $87 billion in the third quarter, compared with $65 billion in the second quarter. Equity fund inflows were particularly strong in Europe, which reported net inflows of $48 billion, more than half of the worldwide total. The Americas reported net inflows to equity funds of $28 billion, while the Asia/Pacific and African regions accounted for $12 billion. Balanced fund flows also picked up in the third quarter, rising to $37 billion, compared with $26 billion in the second quarter.

Net cash flow to bond funds in the third quarter were $89 billion, nearly double the second-quarter pace. Net inflows in Europe increased, with France and Luxembourg reporting strong inflows; net bond inflows in the Americas increased, lead by large inflows in the United States. Net outflows in the Asia/Pacific region slowed, as inflows to bond funds in Japan helped to offset outflows in Korea and Taiwan in the third quarter.

In the third quarter of 2005, money market funds garnered an inflow of $59 billion worldwide, primarily as a result of inflows in the United States, which accounted for $42 billion, or 71 percent of the total. Money fund flows picked up in Europe in the third quarter, registering $19 billion, compared with $10 billion in the second quarter. On net, the Asia/Pacific and African regions reported very minor outflows in money funds in the third quarter.

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

		2003	2004				2005
		Q4	Q1	Q2	Q3	Q4	Q1	Q3	Q4
All Funds		73	248	22	22	166	215	166	305
	Equity	116	142	75	40	100	103	65	87
	Bond	-4	58	-12	19	43	99	49	89
	Money Market	-67	5	-58	-57	-10	-21	*	59
	Balanced/Mixed	23	40	4	13	24	11	26	37
	Other	5	3	13	5	8	22	25	32

* 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, 2005:Q2 and 2005:Q3. 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 third quarter of 2005, 44 percent of worldwide mutual fund assets were equity funds. The asset share of money market funds was 18 percent, while that of bond funds was 20 percent. Balanced/mixed fund assets represented 9 percent of the total.

Worldwide Mutual Fund Assets By Type Of Fund, 2005:Q3
(percent)

Note: Other/unclassified includes the total net assets of Australia and Ireland. Components do not add to 100 percent because of rounding.

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

Worldwide Mutual Fund Assets by Region, 2005:Q3
(percent)

The number of mutual funds worldwide stood at 56,095 at the end of the third 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:Q3
(billions of U.S. dollars, end of period)

		1999	2000	2001	2002	2003	2004	2005
							Q4	Q1	Q2	Q3
All Reporting Countries1		11,762	11,871	11,655	11,324	14,048	16,165	16,151	16,405	17,284
	Equity	5,993	5,962	5,134	4,204	5,923	7,219	7,221	7,129	7,682
	Bond	2,156	2,077	2,212	2,534	3,047	3,313	3,341	3,335	3,453
	Money Market	2,396	2,483	2,986	3,190	3,206	3,323	3,270	3,080	3,158
	Balanced/Mixed	967	1,022	942	918	1,198	1,445	1,427	1,455	1,535
	Other	192	190	190	229	311	398	416	214	245
Countries Reporting in Every Period2		11,431	11,452	11,199	10,767	13,300	15,246	15,231	14,767	15,591
	Equity	5,828	5,809	5,007	4,084	5,766	7,031	7,034	6,946	7,481
	Bond	2,095	2,025	2,152	2,462	2,953	3,217	3,249	3,238	3,347
	Money Market	2,390	2,475	2,970	3,159	3,157	3,254	3,200	3,008	3,081
	Balanced/Mixed	935	962	888	860	1,128	1,364	1,347	1,377	1,452
	Other	183	181	182	202	296	380	401	199	230

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:Q3
(billions of U.S. dollars)

		2001	2002	2003	2004			2005
					Q2	Q3	Q4	Q1	Q2	Q3
All Reporting Countries2		904	278	317	22	22	166	215	166	305
	Equity	151	66	283	75	40	100	103	65	87
	Bond	196	130	177	-12	19	43	99	49	89
	Money Market	531	53	-212	-58	-57	-10	-21	0	59
	Balanced/Mixed	8	6	56	4	13	24	11	26	37
	Other	19	23	14	13	5	8	22	25	32
Countries Reporting in Every Period3		784	240	165	-14	15	124	128	127	205
	Equity	115	55	250	62	31	83	76	59	61
	Bond	144	121	86	-20	20	31	32	35	56
	Money Market	515	49	-218	-62	-50	-11	-20	5	53
	Balanced/Mixed	1	10	40	5	12	19	33	22	30
	Other	9	5	6	1	2	2	7	6	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:Q3
(end of period)

		1999	2000	2001	2002	2003	2004	2005
							Q4	Q1	Q2	Q3
All Reporting Countries1		52,746	51,692	52,849	54,110	54,569	54,984	55,095	55,919	56,095
	Equity	22,453	20,381	22,348	22,974	22,688	22,364	22,796	23,043	23,050
	Bond	15,474	13,128	12,183	11,619	11,886	13,309	13,127	13,213	13,225
	Money Market	6,745	4,692	4,277	4,394	4,974	3,623	3,618	3,598	3,569
	Balanced/Mixed	6,375	11,110	11,155	11,228	11,465	11,603	11,111	11,291	11,181
	Other	612	1,000	1,195	1,310	1,578	1,997	2,364	2,659	3,017
Countries Reporting in Every Period2		35,962	39,367	41,620	42,393	41,689	42,356	42,093	42,529	42,377
	Equity	15,656	18,637	20,630	20,808	20,018	19,920	19,971	20,052	19,952
	Bond	10,867	10,176	9,830	9,946	9,847	9,961	10,004	10,026	10,076
	Money Market	2,701	2,786	2,727	2,674	2,652	2,899	2,901	2,867	2,831
	Balanced/Mixed	6,149	6,926	7,500	7,723	7,857	8,095	7,674	7,966	7,850
	Other	589	842	933	1,242	1,315	1,481	1,543	1,618	1,668

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.