Worldwide Mutual Fund Assets And Flows
Second Quarter 2007

Washington, DC, November 14, 2007 - Mutual fund assets worldwide increased 6.7 percent to $24.32 trillion at the end of the second quarter of 2007. Net cash flow to all funds worldwide was $434 billion in the second quarter, the third consecutive quarter with net flows in excess of $400 billion. Inflows to long-term funds were up slightly to $294 billion in the second quarter from $283 billion in the first quarter. Inflows to money market funds remained robust at $139 billion in the second quarter, compared to $134 billion in the first quarter of 2007.

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 2007 contains statistics from 41 countries.

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

Most reporting countries had positive net cash flow in the second quarter of 2007 and positive stock market performance. However, in many countries, growth in assets reported in U.S. dollars was boosted by depreciation of the dollar. For example, mutual fund assets in Europe on a U.S.-dollar-denominated basis increased 5.8 percent, compared to a 4.3 percent increase on a Euro-denominated basis.

On a U.S.-dollar-denominated basis, asset levels increased in all investment categories. Assets of equity funds grew 8.1 percent, with $11.9 trillion in assets at the end of the second quarter of 2007. Bond funds were up 2.8 percent and money market funds grew 5.0 percent in the quarter. Assets of balanced/mixed funds increased 7.5 percent to $2.4 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)

Net cash flow to mutual funds worldwide was $434 billion in the second quarter of 2007, with both long-term funds and money market funds experiencing aggregate net inflows. Equity fund flows worldwide were $104 billion in the second quarter, down from $118 billion in the first quarter. The Asia/Pacific region accounted for $68 billion of equity flows in the second quarter and the Americas for $42 billion of equity flows in the second quarter, compared to $43 billion and $79 billion, respectively, in the first quarter. Europe registered a net outflow of $6 billion from equity funds in the second quarter, compared to a net outflow of $5 billion in the first quarter.

Net flows to bond funds increased substantially to $98 billion in the second quarter of 2007, up from $69 billion in the first quarter of 2007. Net inflows to bond funds were $65 billion in the Americas and $15 billion in Europe in the second quarter, about in line with their first quarter pace. Most of the acceleration of bond fund flows was attributable to the Asia/Pacific region, which registered inflows of $17 billion in the second quarter after experiencing net outflows of $7 billion in the first quarter. Worldwide inflows to balanced funds were $59 billion in the second quarter, with $38 billion, or about two-thirds, attributable to Europe.

Flows into money market funds were $139 billion in the second quarter, about in line with the rate of inflows over the previous three quarters. Net flows into money market funds in the Americas jumped to $103 billion in the second quarter from $70 billion in the first quarter. Inflows to European money market funds slowed to $35 billion the second quarter, compared to a net inflow of $70 billion in the first quarter.

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

			2005		2006				2007
			Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
All Funds			305	284	437	206	252	404	417	434
	Equity		87	160	246	74	65	150	118	104
	Bond		89	-14	65	-5	8	40	69	98
	Money Market		59	81	28	71	124	143	134	139
	Balanced/Mixed		37	34	73	48	38	45	69	59
	Other		32	22	25	19	18	26	26	35

Equity fund assets represented the bulk of all worldwide mutual fund assets. At the end of the second quarter of 2007, 49 percent of worldwide mutual fund assets were equity funds. The asset share of bond funds was 17 percent and money market funds were 18 percent of the total. Balanced/mixed fund assets represented 10 percent of the total.

Worldwide Mutual Fund Assets By Type Of Fund, 2007:Q2
(percent)

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

By region, 52 percent of worldwide assets were in the Americas in the second quarter of 2007, 35 percent were in Europe, and 12 percent in Africa and Asia/Pacific.

Worldwide Mutual Fund Assets by Region, 2007:Q2
(percent)

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

The number of mutual funds worldwide stood at 63,200 at the end of the second quarter of 2007. By type of fund, 41 percent were equity funds, 21 percent were bond funds, 21 percent were balanced/mixed funds, and 5 percent were money market funds.

Worldwide Mutual Funds by Type of Fund, 2007:Q2
(percent)

Note: Other/unclassified includes total funds in Ireland.

Total Net Assets, 2002-2007:Q2
Billions of U.S. dollars, end of period

		2002	2003	2004	2005	2006			2007
						Q2	Q3	Q4	Q1	Q2
All Reporting Countries1		11,324	14,048	16,165	17,771	19,416	20,219	21,728	22,797	24,316
	Equity	4,204	5,923	7,219	8,333	9,180	9,556	10,504	11,013	11,905
	Bond	2,534	3,047	3,313	3,450	3,636	3,710	3,870	4,006	4,116
	Money Market	3,190	3,206	3,323	3,364	3,557	3,685	3,864	4,063	4,267
	Balanced/Mixed	918	1,198	1,445	1,566	1,802	1,923	2,048	2,187	2,352
	Other	229	311	398	512	602	619	675	706	793
Countries Reporting in Every Period2		10,767	13,300	15,246	16,731	18,162	18,859	20,275	21,277	22,681
	Equity	4,084	5,766	7,031	8,123	8,928	9,290	10,209	10,712	11,573
	Bond	2,462	2,953	3,217	3,339	3,508	3,587	3,752	3,889	3,994
	Money Market	3,159	3,157	3,254	3,289	3,449	3,571	3,736	3,934	4,133
	Balanced/Mixed	860	1,128	1,364	1,485	1,695	1,812	1,924	2,060	2,215
	Other	202	296	380	495	582	599	654	682	766

Source: National mutual fund associations; European Fund and Asset Management Association (EFAMA, formerly EFSI) 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 2003-2007:Q2
Billions of U.S. dollars

		2003	2004	2005	2006	2006			2007
						Q2	Q3	Q4	Q1	Q2
All Reporting Countries2		317	457	971	1,299	206	252	404	416	434
	Equity	283	357	416	535	74	65	150	118	104
	Bond	177	109	224	108	-5	8	40	69	98
	Money Market	-212	-120	120	365	71	124	143	134	139
	Balanced/Mixed	56	82	108	203	48	38	45	69	59
	Other	14	29	102	88	19	18	26	26	35
Countries Reporting in Every Period3		165	307	672	951	130	206	331	317	311
	Equity	250	298	317	414	62	53	123	111	93
	Bond	86	62	91	78	0	18	38	48	59
	Money Market	-218	-131	128	336	47	117	147	113	125
	Balanced/Mixed	40	69	112	102	17	14	20	35	22
	Other	6	8	23	21	5	5	4	10	12

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 rounding.

Number of Funds, 2002-2007:Q2
(End of period)

		2002	2003	2004	2005	2006			2007
						Q2	Q3	Q4	Q1	Q2
All Reporting Countries1		54,110	54,569	54,982	56,868	59,408	59,761	61,498	62,512	63,200
	Equity	22,974	22,688	22,362	23,264	24,417	24,572	25,583	25,599	25,947
	Bond	11,619	11,886	13,309	13,231	13,395	13,455	13,557	13,498	13,370
	Money Market	4,394	4,974	3,623	3,536	3,603	3,498	3,407	3,406	3,340
	Balanced/Mixed	11,228	11,465	11,603	11,393	12,117	11,992	12,515	13,069	13,072
	Other	1,310	1,578	1,997	3,317	3,713	3,969	4,097	4,521	4,996
Countries Reporting in Every Period2		42,393	41,689	42,354	42,427	43,660	44,011	44,985	45,318	45,731
	Equity	20,808	20,018	19,918	20,044	20,612	20,734	21,555	21,341	21,479
	Bond	9,946	9,847	9,961	10,004	10,128	10,222	10,291	10,299	10,263
	Money Market	2,674	2,652	2,899	2,799	2,818	2,710	2,595	2,589	2,573
	Balanced/Mixed	7,723	7,857	8,095	7,857	8,152	8,335	8,465	8,784	8,975
	Other	1,242	1,315	1,481	1,723	1,950	2,010	2,079	2,305	2,441

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.