Worldwide Mutual Fund Assets And Flows
Third Quarter 2006

Washington, DC, February 1, 2007 - Mutual fund assets worldwide increased 4.1 percent to $20.22 trillion at the end of the third quarter of 2006. Net new cash flow to all funds worldwide increased to $252 billion in the third quarter, from $206 billion in the second quarter of 2006. Inflows to long-term funds were $128 billion in the third quarter, about on par with the $135 billion of inflows in the second quarter, but well below the first-quarter pace of $409 billion. In contrast, inflows to money market funds strengthened for the second consecutive quarter, reaching $124 billion in the third quarter, compared to $71 billion in the second quarter and $28 billion in the first quarter. On a year-to-date basis, net cash flow to all funds was $895 billion, $208 billion higher than in the first three quarters of 2005.

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 2006 contains statistics from 42 countries.

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

On a U.S.-dollar-denominated basis, asset levels increased in all investment categories. Assets of equity funds grew 4.1 percent, with $9.6 trillion in assets at the end of the third quarter of 2006. Bond funds were up 2.1 percent and money market funds grew 3.6 percent in the quarter. Assets of balanced/mixed funds continued to grow at a faster pace than other categories, increasing 6.7 percent to $1.9 trillion 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 $252 billion in the third quarter of 2006, with both long-term funds and money market funds experiencing aggregate net inflows. Equity fund flows worldwide slowed to $64 billion in the third quarter, compared with $74 billion in the second quarter. The Asia/Pacific and African regions accounted for $20 billion of equity inflows and equity funds in the Americas accounted for $18 billion, down from $42 billion and $29 billion, respectively, in the second quarter. On the other hand, net inflows into European equity funds strengthened, increasing from $3 billion in the second quarter to $26 billion in the third quarter. Balanced fund inflows remained strong at $37 billion. Net flows to bond funds remained weak at $8 billion in the third quarter of 2006 after an outflow of $5 billion in the second quarter. Net inflows to bond funds in the Americas were $20 billion in the third quarter, but were offset by outflows in the European region and the Asian and Pacific region. The pace of flows into money market funds accelerated in the third quarter to $124 billion, up from $71 billion in the second quarter. The United States accounted for $101 billion of money market inflows in the third quarter, up from $58 billion in the second quarter.

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

		2004	2005				2006
		Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
All Funds		166	215	166	305	284	437	206	252
	Equity	100	103	65	87	160	246	74	64
	Bond	43	99	49	89	-14	65	-5	8
	Money Market	-10	-21	*	59	81	28	71	124
	Balanced/Mixed	24	11	26	37	34	73	48	37
	Other	8	22	25	32	22	25	19	18

Less than $0.5 billion.
Note: Thirty-One countries reported in 2004:Q4; 32 countries reported in 2005:Q1, 2005:Q2, 2005:Q3, and 2005:Q4; 33 countries reported in 2006:Q1 and 2006:Q2; and 34 countries in 2006:Q3. Assets of reporting countries represented 92 percent of assets of all countries at the end of 2006:Q3. In 2006:Q3, a reclassification of some funds in Brazil boosted reported balanced fund flows and damped reported bond fund flows. 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 2006, 47 percent of worldwide mutual fund assets were equity funds. The asset share of bond funds was 18 percent and money market funds were also 18 percent of the total. Balanced/mixed fund assets represented 10 percent of the total.

Worldwide Mutual Fund Assets By Type Of Fund, 2006:Q3
(percent)

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

Worldwide Mutual Fund Assets by Region, 2006:Q3
(percent)

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

The number of mutual funds worldwide stood at 59,763 at the end of the third quarter of 2006. By type of fund, 41 percent were equity funds, 23 percent were bond funds, 20 percent were balanced/mixed funds, and 6 percent were money market funds.

Worldwide Mutual Funds by Type of Fund, 2006:Q3
(percent)

Note: Other/unclassified includes total funds in Ireland.

Total Net Assets, 2001-2006:Q3
(billions of U.S. dollars, end of period)

		2001	2002	2003	2004	2005		2006
						Q3	Q4	Q1	Q2	Q3
All Reporting Countries1		11,655	11,324	14,048	16,165	17,285	17,771	19,113	19,416	20,218
	Equity	5,134	4,204	5,923	7,219	7,953	8,333	9,229	9,180	9,554
	Bond	2,212	2,534	3,047	3,313	3,517	3,450	3,591	3,636	3,711
	Money Market	2,986	3,190	3,206	3,323	3,279	3,364	3,413	3,557	3,685
	Balanced/Mixed	942	918	1,198	1,445	1,535	1,566	1,717	1,802	1,923
	Other	190	229	311	398	481	512	567	602	619
Countries Reporting in Every Period2		11,199	10,767	13,300	15,246	16,284	16,731	17,910	18,162	18,858
	Equity	5,007	4,084	5,766	7,031	7,753	8,123	8,974	8,928	9,288
	Bond	2,152	2,462	2,953	3,217	3,411	3,339	3,435	3,508	3,588
	Money Market	2,970	3,159	3,157	3,254	3,202	3,289	3,329	3,449	3,571
	Balanced/Mixed	888	860	1,128	1,364	1,452	1,485	1,624	1,695	1,812
	Other	182	202	296	380	466	495	547	582	599

Source: National mutual fund associations; European Fund and Asset Management Association (EFAMA, formerly FEFSI) provides data for all European countries except Romania and Russia.
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.

Net Sales,¹ 2002-2006:Q3
(billions of U.S. dollars)

		2002	2003	2004	2005	2005		2006
						Q3	Q4	Q1	Q2	Q3
All Reporting Countries2		278	317	457	971	305	284	437	206	252
	Equity	66	283	357	416	87	160	246	74	64
	Bond	130	177	109	224	89	-14	65	-5	8
	Money Market	53	-212	-120	120	59	81	28	71	124
	Balanced/Mixed	6	56	82	108	37	34	73	48	37
	Other	23	14	29	102	32	22	25	19	18
Countries Reporting in Every Period3		240	165	307	672	205	212	283	130	206
	Equity	55	250	298	317	61	121	177	62	52
	Bond	121	86	62	91	56	-33	23	0	18
	Money Market	49	-218	-131	128	53	91	26	47	117
	Balanced/Mixed	10	40	69	112	30	27	52	17	14
	Other	5	6	8	18	6	5	7	5	5

Source: National mutual fund associations; European Fund and Asset Management Association (EFAMA, formerly FEFSI) provides data for all European countries except Romania and Russia.
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 roundingNet Sales,¹ 2002-2006:Q2

Number of Funds, 2001-2006:Q3
(end of period)

		2001	2002	2003	2004	2005		2006
						Q3	Q4	Q1	Q2	Q3
All Reporting Countries1		52,849	54,110	54,569	54,982	56,095	56,867	58,378	59,408	59,763
	Equity	22,348	22,974	22,688	22,362	23,050	23,264	23,956	24,417	24,570
	Bond	12,183	11,619	11,886	13,309	13,225	13,231	13,316	13,395	13,459
	Money Market	4,277	4,394	4,974	3,623	3,569	3,536	3,574	3,603	3,498
	Balanced/Mixed	11,155	11,228	11,465	11,603	11,181	11,393	11,790	12,117	11,992
	Other	1,195	1,310	1,578	1,997	3,017	3,317	3,577	3,713	3,969
Countries Reporting in Every Period2		41,620	42,393	41,689	42,354	42,377	42,427	42,984	43,660	44,013
	Equity	20,630	20,808	20,018	19,918	19,952	20,044	20,285	20,612	20,732
	Bond	9,830	9,946	9,847	9,961	10,076	10,004	10,036	10,128	10,226
	Money Market	2,727	2,674	2,652	2,899	2,831	2,799	2,818	2,818	2,710
	Balanced/Mixed	7,500	7,723	7,857	8,095	7,850	7,857	7,962	8,152	8,335
	Other	933	1,242	1,315	1,481	1,668	1,723	1,883	1,950	2,010

Source: National mutual fund associations; European Fund and Asset Management Association (EFAMA, formerly FEFSI) provides data for all European countries except Romania and Russia.
¹ Components may not sum to total because of unclassified funds.
² Number of countries is 24.