Worldwide Mutual Fund Assets And Flows
Third Quarter 2007

Washington, DC, February 7, 2008 - Mutual fund assets worldwide increased 6.2 percent to $25.82 trillion at the end of the third quarter of 2007. Asset growth was boosted in part by the participation in the data collection of an additional country. Net cash flow to all funds worldwide was $319 billion in the third quarter, falling below $400 billion for the first time since the third quarter of 2006. Inflows to long-term funds were down nearly 90 percent to $37 billion in the third quarter from $294 billion in the second quarter. Bond funds were responsible for a substantial portion of the decline, experiencing net outflows of $51 billion in the third quarter versus a net inflow of $98 billion in the second quarter. Inflows to money market funds, already robust for four straight quarters, more than doubled in the third quarter, with $282 billion in inflows compared to $138 billion in the second 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 third quarter of 2007 contains statistics from 43 countries.

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

Growth in total net assets in the third quarter of 2007 was boosted by two factors. First, the third quarter was the first time China has reported mutual fund assets. Excluding Chinese mutual funds from third quarter totals, growth in assets would have been 4.5 percent in the third quarter rather than 6.2 percent. Second, in many countries, growth in assets reported in U.S. dollars was augmented by depreciation of the dollar. For example, mutual fund assets in Europe on a U.S.-dollar-denominated basis increased 2.9 percent, compared to a decline of 1.9 percent on a Euro-denominated basis.

On a U.S.-dollar-denominated basis, asset levels increased in all investment categories. Assets of equity funds grew 5.6 percent, with $12.6 trillion in assets at the end of the third quarter of 2007. Bond funds were up 2.1 percent and money market funds grew 9.3 percent in the quarter. Assets of balanced/mixed funds increased 11.0 percent to $2.6 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 $318 billion in the third quarter of 2007, with both long-term funds and money market funds experiencing aggregate net inflows. Equity fund flows worldwide were $31 billion in the third quarter, down from $103 billion in the second quarter. The Asia/Pacific region accounted for $48 billion of equity flows in the third quarter and the Americas for $14 billion of equity flows in the third quarter, compared to $68 billion and $42 billion, respectively, in the second quarter. Europe registered a net outflow of $31 billion from equity funds in the third quarter, compared to a net outflow of $6 billion in the second quarter. Bond funds experienced $51 billion in net outflows in the third quarter of 2007, compared to net inflows of $98 billion in the second quarter of 2007. Net outflows from bond funds were $63 billion in Europe in the third quarter, compared to net inflows of $15 billion in the second quarter. Net inflows to bond funds were $14 billion in the Americas in the third quarter, down from $65 billion in the second quarter.

Worldwide inflows to balanced funds were $23 billion in the third quarter, with $17 billion, or about three-quarters, attributable to the Americas.

Flows into money market funds were $282 billion in the third quarter of 2007, about twice as high as the rate of inflows over the previous four quarters. Net flows into money market funds in the United States jumped to $312 billion in the third quarter from 100 billion in the second quarter. The rest of the world experienced net outflows from money funds in the third quarter. In particular, European money market funds had net outflows of $27 billion in the third quarter versus net inflows of $35 billion in the second quarter.

Net Sales Of Mutual Funds Worldwid (billions of U.S. dollars)
			2005		2006					2007
			Q4		Q1	Q2	Q3	Q4		Q1	Q2	Q3
All Funds			284		437	206	252	404		416	432	319
Equity			160		246	74	65	150		118	103	32
Bond			-14		65	-5	8	40		69	98	-51
Money Market			81		28	71	124	143		134	138	282
Balanced/Mixed			34		73	48	38	45		69	58	23
Other			22		25	19	18	26		26	35	33
Note: Thirty-two countries reported in 2005:Q4; 33 countries reported in 2006:Q1, 2006:Q2; 34 countries in 2006:Q3, 2006:Q4, 2007:Q1, 2007:Q2 and 2007:Q3. Assets of reporting countries represented 92 percent of assets of all countries at the end of 2007:Q3. 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 2007, 49 percent of worldwide mutual fund assets were equity funds. The asset share of bond funds was 16 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:Q3
(percent)

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

By region, 52 percent of worldwide assets were in the Americas in the third quarter of 2007, 34 percent were in Europe, and 14 percent in Africa and Asia/Pacific.

Worldwide Mutual Fund Assets by Region, 2007:Q3
(percent)

The number of mutual funds worldwide stood at 64,062 at the end of the third 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:Q3
(percent)

Note: Other/unclassified includes total funds in Ireland.

Total Net Assets, 2002-2007:Q3
Billions of U.S. dollars, end of periods

			2002		2003	2004	2005	2006		2007
								Q3	Q4	Q1	Q2	Q3
All Reporting Countries1				11,324	14,048	16,165	17,771	20,219	21,728	22,797	24,314	25,822
	Equity		4,204		5,923	7,219	8,333	9,556	10,504	11,013	11,903	12,562
	Bond		2,534		3,047	3,313	3,450	3,710	3,870	4,006	4,116	4,202
	Money Market		3,190		3,206	3,323	3,364	3,685	3,864	4,063	4,267	4,665
	Balanced/Mixed		918		1,198	1,445	1,566	1,923	2,048	2,187	2,352	2,610
	Other		229		311	398	512	619	675	706	793	862
Countries Reporting in Every Period2				10,767	13,300	15,246	16,731	18,859	20,275	21,277	22,678	23,743
	Equity		4,084		5,766	7,031	8,123	9,290	10,209	10,712	11,571	11,969
	Bond		2,462		2,953	3,217	3,339	3,587	3,752	3,889	3,993	4,054
	Money Market		3,159		3,157	3,254	3,289	3,571	3,736	3,934	4,132	4,535
	Balanced/Mixed		860		1,128	1,364	1,485	1,812	1,924	2,060	2,215	2,348
	Other		202		296	380	495	599	654	682	766	837
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 2003-2007:Q3
Billions of U.S. dollars

		2003	2004	2005	2006	2006		2007
						Q3	Q4	Q1	Q2	Q3
All Reporting Countries2		317	457	971	1,299	252	404	416	432	319
	Equity	283	357	416	535	65	150	118	103	32
	Bond	177	109	224	108	8	40	69	98	-51
	Money Market	-212	-120	120	365	124	143	134	138	282
	Balanced/Mixed	56	82	108	203	38	45	69	58	23
	Other	14	29	102	88	18	26	26	35	33
Countries Reporting in Every Period3		165	307	672	951	206	331	317	310	267
	Equity	250	298	317	414	53	123	111	92	36
	Bond	86	62	91	78	18	38	48	59	-26
	Money Market	-218	-131	128	336	117	147	113	124	257
	Balanced/Mixed	40	69	112	102	14	20	35	22	-5
	Other	6	8	23	21	5	4	10	12	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 rounding.

Number of Funds, 2002-2007:Q3
(End of period)

		2002	2003	2004	2005	2006		2007
						Q3	Q4	Q1	Q2	Q3
All Reporting Countries1		54,110	54,569	54,982	56,868	59,761	61,498	62,512	63,292	64,062
	Equity	22,974	22,688	22,362	23,264	24,572	25,583	25,599	25,947	26,060
	Bond	11,619	11,886	13,309	13,231	13,455	13,557	13,498	13,420	13,517
	Money Market	4,394	4,974	3,623	3,536	3,498	3,407	3,406	3,382	3,447
	Balanced/Mixed	11,228	11,465	11,603	11,393	11,992	12,515	13,069	13,072	13,333
	Other	1,310	1,578	1,997	3,317	3,969	4,097	4,521	4,996	5,174
Countries Reporting in Every Period2		42,393	41,689	42,354	42,427	44,011	44,985	45,318	45,723	46,836
	Equity	20,808	20,018	19,918	20,044	20,734	21,555	21,341	21,477	21,703
	Bond	9,946	9,847	9,961	10,004	10,222	10,291	10,299	10,261	10,443
	Money Market	2,674	2,652	2,899	2,799	2,710	2,595	2,589	2,569	2,661
	Balanced/Mixed	7,723	7,857	8,095	7,857	8,335	8,465	8,784	8,975	9,510
	Other	1,242	1,315	1,481	1,723	2,010	2,079	2,305	2,441	2,519
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.