Worldwide Mutual Fund Assets And Flows
Fourth Quarter 2005

Washington, DC, May 11, 2006 - Mutual fund assets worldwide increased 2.8 percent to $17.77 trillion at the end of the fourth quarter of 2005. Net cash flow to all funds worldwide registered a robust $287 billion in the fourth quarter of 2005. Long-term funds had net inflows of $206 billion in the fourth quarter with inflows to equity funds nearly double their third-quarter pace. The pace of money market fund inflows accelerated, reaching $81 billion worldwide, primarily due to sizeable inflows in the United States. For the year as a whole, net cash flow to all funds worldwide was more than double the amount of inflows in 2004.

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 fourth quarter of 2005 contains statistics from 41 countries.

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

Most reporting countries had positive stock market performance and positive net cash flow in the fourth quarter. However, 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 increased 3.5 percent, compared with 1.4 percent on a U.S.-dollar-denominated basis.

On a U.S.-dollar-denominated basis, mutual fund assets increased in the fourth quarter in all investment categories other than bonds. The largest increase occurred in worldwide assets of equity funds, which reached $8.3 trillion at the end of the fourth quarter of 2005, growing 4.8 percent over the quarter. Money market fund assets increased 2.6 percent, holding $3.4 trillion worldwide at the end of the fourth quarter. Assets of balanced/mixed funds grew 2.1 percent. In contrast, bond fund assets fell 2.0 percent in the fourth quarter to $3.4 trillion worldwide.

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 $287 billion in the fourth quarter of 2005, with long-term funds and money market funds experiencing aggregate net inflows worldwide. Equity fund flows worldwide increased to $163 billion in the fourth quarter, compared with $87 billion in the third quarter. Equity fund inflows were strong worldwide, with the Americas reporting net inflows to equity funds of $68 billion, Europe reporting net inflows of $57 billion, and the Asia/Pacific and African regions accounting for $38 billion. Balanced fund flows were down slightly in the fourth quarter, slowing to $35 billion compared with $37 billion in the third quarter.

Net cash flow to bond funds turned negative in the fourth quarter, with worldwide outflows equal to $14 billion (€12 billion). Net inflows to bond funds in the Americas were $13 billion in the fourth quarter, down from $39 billion in the third quarter. However, Europe experienced outflows of $19 billion. The aggregate outflows from bond funds in Europe reflected the switch of assets from a dedicated UCITS of €32 billion to an in-house managed portfolio, as part of the launch of the Banque Postale in France. After slowing in the third quarter, fourth-quarter net outflows in the Asia/Pacific region once again accelerated, reaching $8 billion as net inflows to bond funds in Japan were unable to offset net outflows from bond funds in India, Korea, and Taiwan.

In the fourth quarter of 2005, money market funds garnered an inflow of $81 billion worldwide, the second quarter of strongly positive net cash flow following a two-and-a-half year period of primarily net outflows. The United States reported inflows of $109 billion, more than accounting for the inflow to money funds worldwide. Money fund flows in Europe reversed in the fourth quarter, registering an outflow of $21 billion after registering an inflow of $19 billion in the third quarter. The Asia/Pacific and African regions reported outflows of $6 billion in the fourth quarter.

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

		2004				2005
		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
All Funds		248	22	22	166	215	166	305	287
	Equity	142	75	40	100	103	65	87	163
	Bond	58	-12	19	43	99	49	89	-14
	Money Market	5	-58	-57	-10	-21	*	59	81
	Balanced/Mixed	40	4	13	24	11	26	37	35
	Other	3	13	5	8	22	25	32	22

* 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, 2005:Q3, and 2005:Q4. Assets of reporting countries represented 92 percent of assets of all countries at the end of 2005:Q4. 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 fourth quarter of 2005, 47 percent of worldwide mutual fund assets were equity funds. The asset share of money market funds and bond funds were 19 percent each. Balanced/mixed fund assets represented 9 percent of the total.

Percent of Worldwide Mutual Fund Assets By Type Of Fund, 2005:Q4

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

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

Percent of Worldwide Mutual Fund Assets by Region, 2005:Q4

The number of mutual funds worldwide stood at 56,863 at the end of the fourth quarter of 2005. 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.

Percent of Worldwide Mutual Fund Assets by Type of Fund, 2005:Q4

Note: Other/unclassified includes total funds in Ireland.

Total Net Assets, 1999 - 2005:Q4
(billions of U.S. dollars, end of period)

		2000	2001	2002	2003	2004	2005
							Q1	Q2	Q3	Q4
All Reporting Countries1		11,871	11,655	11,324	14,048	16,165	16,151	16,368	17,285	17,771
	Equity	5,962	5,134	4,204	5,923	7,219	7,221	7,384	7,953	8,333
	Bond	2,077	2,212	2,534	3,047	3,313	3,341	3,397	3,517	3,448
	Money Market	2,483	2,986	3,190	3,206	3,323	3,270	3,202	3,279	3,364
	Balanced/Mixed	1,022	942	918	1,198	1,445	1,427	1,455	1,535	1,568
	Other	190	190	229	311	398	416	436	481	512
Countries Reporting in Every Period2		11,452	11,199	10,767	13,300	15,246	15,231	15,428	16,284	16,732
	Equity	5,809	5,007	4,084	5,766	7,031	7,034	7,201	7,753	8,123
	Bond	2,025	2,152	2,462	2,953	3,217	3,249	3,299	3,411	3,339
	Money Market	2,475	2,970	3,159	3,157	3,254	3,200	3,129	3,202	3,289
	Balanced/Mixed	962	888	860	1,128	1,364	1,347	1,377	1,452	1,485
	Other	181	182	202	296	380	401	422	466	495

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:Q4
(billions of U.S. dollars)

		2001	2002	2003	2004	2004	2005
						Q4	Q1	Q2	Q3	Q4
All Reporting Countries2		904	278	317	457	166	215	166	305	287
	Equity	151	66	283	357	100	103	65	87	163
	Bond	196	130	177	109	43	99	49	89	-14
	Money Market	531	53	-212	-120	-10	-21	0	59	81
	Balanced/Mixed	8	6	56	82	24	11	26	37	35
	Other	19	23	14	29	8	22	25	32	22
Countries Reporting in Every Period3		784	240	165	307	124	128	127	205	214
	Equity	115	55	250	298	83	76	59	61	124
	Bond	144	121	86	62	31	32	35	56	-33
	Money Market	515	49	-218	-131	-11	-20	5	53	91
	Balanced/Mixed	1	10	40	69	19	33	22	30	27
	Other	9	5	6	8	2	7	6	6	5

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:Q4
(end of period)

		2000	2001	2002	2003	2004	2005
							Q1	Q2	Q3	Q4
All Reporting Countries1		51,692	52,849	54,110	54,569	54,984	55,095	55,919	56,095	56,863
	Equity	20,381	22,348	22,974	22,688	22,364	22,796	23,043	23,050	23,284
	Bond	13,128	12,183	11,619	11,886	13,309	13,127	13,213	13,225	13,177
	Money Market	4,692	4,277	4,394	4,974	3,623	3,618	3,598	3,569	3,536
	Balanced/Mixed	11,110	11,155	11,228	11,465	11,603	11,111	11,291	11,181	11,422
	Other	1,000	1,195	1,310	1,578	1,997	2,364	2,659	3,017	3,317
Countries Reporting in Every Period2		39,367	41,620	42,393	41,689	42,356	42,093	42,529	42,377	42,429
	Equity	18,637	20,630	20,808	20,018	19,920	19,971	20,052	19,952	20,044
	Bond	10,176	9,830	9,946	9,847	9,961	10,004	10,026	10,076	10,006
	Money Market	2,786	2,727	2,674	2,652	2,899	2,901	2,867	2,831	2,799
	Balanced/Mixed	6,926	7,500	7,723	7,857	8,095	7,674	7,966	7,850	7,857
	Other	842	933	1,242	1,315	1,481	1,543	1,618	1,668	1,723

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.