Worldwide Mutual Fund Assets And Flows
Fourth Quarter 2007

Washington, DC, April 16, 2008 - Mutual fund assets worldwide increased 1.6 percent to $26.20 trillion at the end of the fourth quarter of 2007. For the year as a whole, assets grew 20.1 percent. Net cash flow to all funds worldwide was $383 billion in the fourth quarter, up from $316 billion in the third quarter of 2007. Inflows to long-term funds rebounded, with $139 billion in inflows in the fourth quarter compared to $37 billion in the third quarter. Inflows to money market funds remained robust, with $244 billion in inflows in the fourth quarter of 2007, down only slightly from the $279 billion pace set in the third quarter. On an annual basis, net cash flow to all funds was $1.54 trillion in 2007, up 18.5 percent from 2006.

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 2007 contains statistics from 44 countries.

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

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 1.7 percent in the fourth quarter of 2007, compared to a 2.0 percent decrease on a Euro-denominated basis.

On a U.S.-dollar-denominated basis, asset levels increased for both long-term and money market funds. Assets of equity funds fell 0.4 percent, with $12.5 trillion in assets at the end of the fourth quarter of 2007. The decline in equity funds was offset by gains at other long-term funds. Bond funds were up 1.6 percent and balanced/mixed funds grew 1.7 percent in the quarter. Assets of money market funds increased 6.3 percent to $5.0 trillion at the end of the fourth 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 $383 billion in the fourth quarter of 2007, with both long-term funds and money market funds experiencing aggregate net inflows. Equity fund flows worldwide were $86 billion in the fourth quarter, up from $31 billion in the third quarter. The Americas accounted for $66 billion of equity flows in the fourth quarter and the Asia/Pacific region for $57 billion of equity flows in the fourth quarter, compared to $14 billion and $48 billion, respectively, in the third quarter. Europe registered a net outflow of $37 billion from equity funds in the fourth quarter, compared to a net outflow of $31 billion in the third quarter. Bond funds experienced $28 billion in net outflows in the fourth quarter of 2007, compared to net outflows of $50 billion in the third quarter of 2007. Net outflows from bond funds were $46 billion in Europe in the fourth quarter, compared to net outflows of $63 billion in the third quarter. Net inflows to bond funds were $33 billion in the United States in the fourth quarter, up from $21 billion in the third quarter. Worldwide inflows to balanced funds were $45 billion in the fourth quarter, with $28 billion, or about three-fifths, attributable to the Americas.

Flows into money market funds remained robust at $244 billion in the fourth quarter of 2007, albeit down from the brisk $279 billion pace in the third quarter. Net flows into money market funds in the United States were $267 billion in the fourth quarter, down from $310 billion in the third quarter. The rest of the world experienced net outflows from money funds in the fourth quarter. In particular, European money market funds had net outflows of $19 billion in the fourth quarter versus net outflows of $27 billion in the third quarter.

			2006				2007
			Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
All Funds			437	206	252	404	410	431	316	383
Equity			246	73	65	150	114	99	31	86
Bond			65	-5	8	40	67	97	-50	-28
Money Market			28	71	124	143	133	138	279	244
Balanced/Mixed			73	48	38	45	69	62	23	45
Other			25	19	18	26	26	35	32	36

Equity fund assets represented the bulk of all worldwide mutual fund assets. At the end of the fourth quarter of 2007, 48 percent of worldwide mutual fund assets were equity funds. The asset share of bond funds was 16 percent and money market funds were 19 percent of the total. Balanced/mixed fund assets represented 10 percent of the total.

Worldwide Mutual Fund Assets By Type Of Fund, 2007:Q4
(percent)

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

By region, 51 percent of worldwide assets were in the Americas in the fourth quarter of 2007, 34 percent were in Europe, and 14 percent in Africa and Asia/Pacific.

Worldwide Mutual Fund Assets by Region, 2007:Q4
(percent)

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

The number of mutual funds worldwide stood at 66,350 at the end of the fourth quarter of 2007. By type of fund, 41 percent were equity funds, 20 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:Q4
(percent)

Note: Other/unclassified includes total funds in Ireland.

Total Net Assets, 2002-2007:Q4
Billions of U.S. dollars, end of periods

		2002	2003	2004	2005	2006	2007
							Q1	Q2	Q3	Q4
All Reporting Countries1		11,324	14,048	16,165	17,771	21,823	22,913	24,519	25,790	26,199
	Equity	4,204	5,923	7,219	8,333	10,508	11,073	12,015	12,525	12,473
	Bond	2,534	3,047	3,313	3,450	3,871	4,010	4,123	4,203	4,271
	Money Market	3,190	3,206	3,323	3,364	3,864	4,072	4,275	4,664	4,957
	Balanced/Mixed	918	1,198	1,445	1,566	2,049	2,232	2,432	2,619	2,664
	Other	229	311	398	512	676	705	791	860	883
Countries Reporting in Every Period2		10,767	13,300	15,246	16,731	20,333	21,297	22,697	23,708	24,030
	Equity	4,084	5,766	7,031	8,123	10,226	10,693	11,551	11,930	11,854
	Bond	2,462	2,953	3,217	3,339	3,755	3,887	3,993	4,054	4,113
	Money Market	3,159	3,157	3,254	3,289	3,769	3,965	4,158	4,534	4,808
	Balanced/Mixed	860	1,128	1,364	1,485	1,927	2,068	2,226	2,355	2,398
	Other	202	296	380	495	656	685	769	835	856
Source: National mutual fund associations; European Fund and Asset Management Association (EFAMA) provides data for all European countries except 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:Q4
Billions of U.S. dollars

		2003	2004	2005	2006	2006	2007
						Q4	Q1	Q2	Q3	Q4
All Reporting Countries2		317	457	971	1,299	404	410	431	316	383
	Equity	283	357	416	534	150	114	99	31	86
	Bond	177	109	224	108	40	67	97	-50	-28
	Money Market	-212	-120	120	366	143	133	138	279	244
	Balanced/Mixed	56	82	108	203	45	69	62	23	45
	Other	14	29	102	88	26	26	35	32	36
Countries Reporting in Every Period3		165	307	671	951	331	310	307	263	332
	Equity	250	298	317	414	123	106	88	35	89
	Bond	86	62	91	77	37	46	58	-26	-5
	Money Market	-218	-131	128	336	146	113	123	254	231
	Balanced/Mixed	40	69	112	102	20	35	25	-5	16
	Other	6	8	23	21	4	10	13	5	1
Source: National mutual fund associations; European Fund and Asset Management Association (EFAMA) provides data for all European countries except 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:Q4
(End of period)

		2002	2003	2004	2005	2006	2007
							Q1	Q2	Q3	Q4
All Reporting Countries1		53,996	54,569	54,982	56,868	61,855	62,889	63,604	64,058	66,350
	Equity	22,974	22,688	22,362	23,264	25,698	25,828	26,123	26,077	26,950
	Bond	11,619	11,886	13,309	13,231	13,571	13,533	13,456	13,524	13,446
	Money Market	4,394	4,974	3,623	3,536	3,409	3,445	3,422	3,444	3,480
	Balanced/Mixed	11,228	11,465	11,603	11,393	12,530	13,118	13,135	13,319	13,963
	Other	1,310	1,578	1,997	3,317	4,116	4,546	4,993	5,163	5,613
Countries Reporting in Every Period2		42,393	41,689	42,354	42,427	45,394	45,597	46,016	46,730	47,661
	Equity	20,808	20,018	19,918	20,044	21,805	21,527	21,665	21,645	22,080
	Bond	9,946	9,847	9,961	10,004	10,292	10,289	10,255	10,441	10,381
	Money Market	2,674	2,652	2,899	2,799	2,663	2,651	2,628	2,656	2,663
	Balanced/Mixed	7,723	7,857	8,095	7,857	8,540	8,816	9,011	9,481	9,944
	Other	1,242	1,315	1,481	1,723	2,094	2,314	2,457	2,507	2,593
Source: National mutual fund associations; European Fund and Asset Management Association (EFAMA) provides data for all European countries except Russia. 1 Components may not sum to total because of unclassified funds. 2 Number of countries is 24.