Professional Documents
Culture Documents
$33.4 trillion
$18.2 trillion
Mutual funds
$15.9 trillion
Exchange-traded funds
$2.0 trillion
Closed-end funds
$289 billion
$101 billion
30%
26%
Commercial paper
46%
11%
53.2 million
90.4 million
43.3%
$103,000
4
$24.7 trillion
63%
$7.3 trillion
2015
Investment Company
Fact Book
2015
Investment Company
Fact Book
A Review of Trends and Activities
in the U.S. Investment Company Industry
55th edition
WWW.ICIFACTBOOK.ORG
The Investment Company Institute (ICI) is the national association of U.S. investment companies. ICI seeks to encourage
adherence to high ethical standards, promote public understanding, and otherwise advance the interests of funds, their
shareholders, directors, and advisers.
Although information or data provided by independent sources is believed to be reliable, ICI is not responsible for its accuracy,
completeness, or timeliness. Opinions expressed by independent sources are not necessarily those of the Institute. If you have
questions or comments about this material, please contact the source directly.
Fifty-fifth edition
ISBN 1-878731-57-2
Copyright 2015 by the Investment Company Institute. All rights reserved.
Contents
Letter from the Chief Economist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
ICI Research Staff and Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x
Brian Reid
Chief Economist of the Investment
Company Institute
This year marks the 75th anniversary of the Investment Company Act and the Investment
Advisers Actthe key statutes under which mutual funds, exchange-traded funds (ETFs),
closed-end funds, and unit investment trusts are regulated and governed. In the same year
that Congress enacted these laws, 1940, the fund industry formed the National Committee of
Investment Companies, the trade group that became the Investment Company Institute (ICI).
Shortly after its formation, ICI began to collect mutual fund asset and flow data, launching a
statistical and research program that remains one of the Institutes core activities and central
strengths. This data collection program has expanded greatly over time, with ICI currently
managing 18 different fund surveys. Our historical data, some extending back nearly threequarters of a century, provide perspective about funds and their investors across changing
market cycles and an evolving investor base.
One of the first projects I worked on when I joined ICI in 1996a study showing how bond
fund investors react during bond market downturnsintroduced me to this historical record.
At the time, there was an ongoing debate about how fund investors would react to market
declines, because fund assets had risen from about $1 billion in 1940 to $3.5 trillion in 1996.
Commentators and researchers were concerned that fund investors would leave the markets en
masse during a downturn, destabilizing a financial system in which funds were playing a larger
role.
If this reminds you of todays debates about financial stability and the fund industry, you are
right. But as ICI economists Sean Collins and Chris Plantier recently wrote, this debate did not
first appear in the 1990s. About once every decade since the 1920s, fears resurface that fund
investors will redeem heavily from stock and bond funds and cause markets to crash. These
concerns typically appear after a period of rapid fund growth. And so now, after nearly a
decade of strong inflows to bond funds, some regulators, researchers, and commentators are
once again raising concerns about how fund investors will react when interest rates begin to
rise and bond funds report losses. Almost daily, a story shows up in the media highlighting
fears of large, destabilizing outflows from bond mutual funds and ETFs that will ignite or
accelerate a financial crisis.
Yet every time I explore this topic I return to the same conclusion: stock and bond funds are
a remarkably stable source of capital to the U.S. and global economies. As we discuss in
chapter 2, outflows from bond funds, even at the height of a market downturn, amount to only
1 or 2 percent of bond fund assets in a month. And even when bond funds have net outflows,
investors do not all move for the exits. As some investors sell shares in bond funds, others
continue to buy; a substantial portion of individual funds have net inflows; and fund managers
are both buyers and sellers of securities. All of this means that funds continue to operate
on both sides of the markets, rather than engaging in the one-sided trading that is often
predicted. (See Figure 2.7 on page 39.)
viii
Despite this historical evidence of stability, these concerns regularly resurfaceand so ICI
Research continues to explore and explain this issue. During the past year, we have written
and contributed to white papers, comment letters, and blog posts, explaining how fund
investors behave during periods of stress. Chris Plantier has examined this for funds investing
in emerging markets, while ICI economist Shelly Antoniewicz and our ICI legal colleague Jane
Heinrichs have studied investor behavior in ETFs.
The natural question is, why do we see such stable investor behavior? Certainly one aspect
is that most fund investors typically invest for the long term. As we discuss in chapter 6,
91percent of mutual fund investors indicate that saving for retirement is one of their savings
goals. These investors have embraced the guidance of financial planners, academics, fund
companies, and journaliststhat timing the market is most likely to leave them worse off than
remaining invested and continuing to make regular contributions to their funds.
Of course, shareholder stability also depends crucially on the strength of regulations that
protect investors. The core features of regulated fundssuch as limitations on fund leverage,
mark-to-market pricing of fund portfolios, portfolio diversity, and liquidity managementhave
provided important shareholder protections and helped maintain investor confidence during
periods of market stress over the past 75 years. These protections help ensure that investors
who stay in a fund are shielded from harm caused by investors leaving the fund. Industry
leaders, the Securities and Exchange Commission, and members of Congress who worked to
craft the statutes that serve as the foundation for regulated funds all understood how investor
protections are interwoven with investor confidence and capital formation.
Gathering and analyzing data about funds, their investors, and the marketsand using those
data to inform and educate regulators, policymakers, and other stakeholdersare critical
to ICIs service to funds and their investors. The months of effort that ICI staff dedicate to
publishing the Fact Book contribute significantly to that mission. This volume is a continuation
of nearly 75 years of effort to facilitate sound, well-informed public policies affecting
investment companies, their investors, and financial markets.
ix
The Closed-End Fund Market, 2013, ICI Research Perspective, March 2014
Trends in the Expenses and Fees of Mutual Funds, 2013, ICI Research Perspective, May 2014
Understanding Exchange-Traded Funds: How ETFs Work, ICI Research Perspective,
September 2014
The IRA Investor Profile: Roth IRA Investors Activity, 20072012, ICI Research Report,
June 2014
Characteristics of Mutual Fund Investors, 2014, ICI Research Perspective, November 2014
Ownership of Mutual Funds, Shareholder Sentiment, and Use of the Internet, 2014,
ICI Research Perspective, November 2014
xi
Defined Contribution Plan Participants Activities, 2013, ICI Research Report, April 2014
The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2013, ICI Research
Perspective, July 2014
What Does Consistent Participation in 401(k) Plans Generate? Changes in 401(k) Account
Balances, 20072012, ICI Research Perspective, July 2014
Defined Contribution Plan Participants Activities, First Quarter 2014, ICI Research Report,
August 2014
Inside the Structure of Defined Contribution/401(k) Plan Fees, 2013, August 2014
Who Gets Retirement Plans and Why, 2013, ICI Research Perspective, October 2014
A Look at Private-Sector Retirement Plan Income After ERISA, 2013, ICI Research
Perspective, October 2014
Defined Contribution Plan Participants Activities, First Half 2014, ICI Research Report,
November 2014
The BrightScope/ICI Defined Contribution Plan Profile: A Close Look at 401(k) Plans,
December 2014
401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2013, ICI Research
Perspective, December 2014
ICIs research is available at www.ici.org/research. Find further analysis and commentary by
ICI economists at ICI Viewpoints (www.ici.org/viewpoints).
Statistical Releases
Trends in Mutual Fund Investing
A monthly report that includes mutual fund sales, redemptions, assets, cash positions,
exchange activity, and portfolio transactions for the period.
Estimated Long-Term Mutual Fund Flows
A weekly report that provides aggregate estimates of net new cash flows to equity, hybrid,
and bond mutual funds.
Money Market Fund Assets
xii
A monthly report based on data contained in SEC Form N-MFP that provides insights into
the aggregated holdings of prime and government money market funds and the nature and
maturity of security holdings and repurchase agreements.
Retirement Market Data
A quarterly report that includes individual retirement account and defined contribution plan
assets and mutual fund assets held in those accounts by type of fund.
Closed-End Fund Data
A quarterly report on closed-end fund assets, number of funds, issuance, and number of
shareholders.
Exchange-Traded Fund Data
A monthly report that includes assets, number of funds, issuance, and redemptions of ETFs.
Unit Investment Trust Data
A monthly report that includes the value and number of new trust deposits by type and
maturity.
Worldwide Mutual Fund Market Data
A quarterly report that includes assets, number of funds, and net sales of mutual funds in
countries worldwide.
These and other ICI statistics are available at www.ici.org/research/stats. To subscribe to ICIs
statistical releases, visit www.ici.org/pdf/stats_subs_order.pdf.
Acknowledgments
Publication of the 2015 Investment Company Fact Book was directed by Chris Plantier, senior
economist, and Judy Steenstra, senior director of statistical research, working with Miriam
Bridges, editorial director, Candice Gullett, senior copyeditor, and Stephanie Lacasse, designer.
xiii
PART ONE
Analysis and
Statistics
Figures
Chapter 1
U.S.-Registered Investment Companies
Figure 1.1: Investment Company Total Net Assets by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.2: The United States Has the Worlds Largest Mutual Fund and ETF Markets . . . . . . . . . . . . . . . . . . . . . . . .10
1.3: Share of Household Financial Assets Held in Investment Companies . . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.4: Household Net Investments in Funds, Bonds, and Equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1.5: Mutual Funds in Household Retirement Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
1.6: Investment Companies Channel Investment to Stock, Bond, and Money Markets . . . . . . . . . . . . . . . . . . . .14
1.7: 80 Percent of Fund Complexes Were Independent Fund Advisers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.8: Number of Fund Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.9: Fund Complexes with Positive Net New Cash Flow to Long-Term Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . 17
1.10: Share of Mutual Fund and ETF Assets at the Largest Complexes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
1.11: Number of Mutual Funds Entering and Leaving the Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
1.12: Total Net Assets and Number of UITs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1.13: Number of Investment Companies by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
1.14: Investment Company Industry Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
1.15: Investment Company Industry Employment by Job Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
1.16: Investment Company Industry Employment by State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Chapter 2
Recent Mutual Fund Trends
Figure 2.1: Equity Funds Held More Than Half of Total Mutual Fund Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.2: Institutional and Household Ownership of Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.3: Net New Cash Flow to Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
2.4: Net New Cash Flow to Equity Funds Is Related to World Equity Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
2.5: Net New Cash Flow to Long-Term Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
2.6: Turnover Rate Experienced by Equity Fund Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
2.7: Net New Cash Flow to Bond Funds Is Related to Bond Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
2.8: Bond Funds Have Experienced Net Inflows Through Most of the Past Decade . . . . . . . . . . . . . . . . . . . . . . . . 39
2.9: Willingness to Take Above-Average or Substantial Investment Risk by Age Group . . . . . . . . . . . . . . . . . . . . . 40
2.10: Mutual Fund Assets by Age Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
2.11: Investors Are Gravitating Toward Hybrid Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
2.12: Alternative Strategies Mutual Funds Have Grown Rapidly Since the 2008 Financial Crisis . . . . . . . . . . . . . . . . 44
2.13: Net New Cash Flow to Index Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
2.14: Funds Indexed to the S&P 500 Held 33Percent of Index Mutual Fund Assets . . . . . . . . . . . . . . . . . . . . . . . 46
2.15: Index Equity Mutual Funds Share Continued to Rise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
2.16: Some of the Outflows from Domestic Equity Mutual Funds Have Gone to ETFs . . . . . . . . . . . . . . . . . . . . . . 47
2.17: Net New Cash Flow to Money Market Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
2.18: Net New Cash Flow to Retail and Institutional Money Market Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
2.19: Money Market Funds Managed 23Percent of U.S. Businesses Short-Term Assets in 2014 . . . . . . . . . . . . . . . . 50
2.20: Net New Cash Flow to Taxable Retail Money Market Funds Is Related to Interest Rate Spread . . . . . . . . . . . . . . 51
2.21: Prime Money Market Fund Holdings of Treasury and Agency Securities and Repurchase Agreements . . . . . . . . . 53
FIGURES
Chapter 3
Exchange-Traded Funds
Figure 3.1: The United States Has the Largest ETF Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
3.2: Total Net Assets and Number of ETFs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
3.3: Creation of ETF Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
3.4: Most ETF Activity Occurs on the Secondary Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
3.5: Net Issuance of ETF Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
3.6: Net Issuance of ETF Shares by Investment Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
3.7: Total Net Assets of ETFs Were Concentrated in Large-Cap Domestic Stocks . . . . . . . . . . . . . . . . . . . . . . . . . 71
3.8: Number of ETFs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
3.9: Types of Commodity and Domestic Sector Equity ETFs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
3.10: ETF-Owning Households Held a Broad Range of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
3.11: Characteristics of ETF-Owning Households . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
3.12: ETF-Owning Households Are Willing to Take More Investment Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Chapter 4
Closed-End Funds
Figure 4.1: Total Assets of Closed-End Funds Increased to $289 Billion at Year-End 2014 . . . . . . . . . . . . . . . . . . . . . . . 81
4.2: Equity Funds Growing Share of the Closed-End Fund Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
4.3: Closed-End Fund Net Share Issuance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
4.4: Closed-End Fund Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
4.5: Closed-End Funds Employing Structural and Certain Types of Portfolio Leverage . . . . . . . . . . . . . . . . . . . . . 85
4.6: Preferred Shares Comprised the Majority of Closed-End Fund Structural Leverage . . . . . . . . . . . . . . . . . . . . 86
4.7: Use of Portfolio Leverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
4.8: Closed-End Fund Investors Owned a Broad Range of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
4.9: Closed-End Fund Investors Had Above-Average Household Incomes and Financial Assets . . . . . . . . . . . . . . . . 89
Chapter 5
Mutual Fund Expenses and Fees
Figure 5.1: Expenses Incurred by Mutual Fund Investors Have Declined Substantially Since 2000 . . . . . . . . . . . . . . . . . . . 93
5.2: Mutual Fund Expense Ratios Tend to Fall as Fund Assets Rise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
5.3: Fund Shareholders Paid Below-Average Expenses for Equity Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
5.4: Assets Are Concentrated in Lower-Cost Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
5.5: Total Net Assets and Number of Index Mutual Funds Have Increased in Recent Years . . . . . . . . . . . . . . . . . . . 97
5.6: Expense Ratios of Actively Managed and Index Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
5.7: Expense Ratios for Selected Investment Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
5.8: Front-End Sales Loads That Investors Pay Are Well Below the Maximum Front-End
Sales Loads That Funds Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
5.9: Nearly All Net New Cash Flow Was in No-Load Institutional Share Classes . . . . . . . . . . . . . . . . . . . . . . . . 106
5.10: Total Net Assets of Long-Term Mutual Funds Are Concentrated in No-Load Share Classes . . . . . . . . . . . . . . . 107
5.11: A Variety of Arrangements May Be Used to Compensate 401(k) Service Providers . . . . . . . . . . . . . . . . . . . 109
5.12: 401(k) Equity Mutual Fund Assets Are Concentrated in Lower-Cost Funds . . . . . . . . . . . . . . . . . . . . . . . . 111
Chapter 6
Characteristics of Mutual Fund Owners
Figure 6.1: 43Percent of U.S. Households Owned Mutual Funds in 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
6.2: Characteristics of Mutual Fund Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
6.3: Incidence of Mutual Fund Ownership Is Greatest Among 35- to 64-Year-Olds . . . . . . . . . . . . . . . . . . . . . . . 116
6.4: The Baby Boom Generation Is the Largest Shareholder Group and Holds the Most Mutual Fund Assets . . . . . . . . .117
6.5: Ownership of Mutual Funds Increases with Household Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
6.6: Most Households That Own Mutual Funds Have Moderate Incomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
6.7: Employer-Sponsored Retirement Plans Are Increasingly the Source of First Mutual Fund Purchase . . . . . . . . . . 121
6.8: 82Percent of Mutual FundOwning Households Held Shares Inside Employer-Sponsored Retirement Plans . . . . . 122
6.9: Nearly Half of Mutual FundOwning Households Held Shares Through Multiple Sources . . . . . . . . . . . . . . . . . 123
6.10: Households Mutual Fund Assets by Type of Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
6.11: Most Shareholders View the Mutual Fund Industry Favorably . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
6.12: Households Willingness to Take Investment Risk Tends to Move with the Stock Market . . . . . . . . . . . . . . . . 126
6.13: Households Willingness to Take Investment Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
6.14: More Than Eight in 10 Mutual FundOwning Households Have Confidence in Mutual Funds . . . . . . . . . . . . . . 128
6.15: Internet Access Is Nearly Universal Among Mutual FundOwning Households . . . . . . . . . . . . . . . . . . . . . . 129
Chapter 7
Retirement and Education Savings
Figure 7.1: Retirement Resource Pyramid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
7.2: Primary Reason for Household Saving Changes with Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
7.3: Social Security Benefit Formula Is Highly Progressive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
7.4: Near-Retiree Households Across All Income Groups Have Retirement Assets, DB Plan Benefits, or Both . . . . . . . 136
7.5: U.S. Retirement Assets Rose in 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.6: Total U.S. Retirement Assets and Unfunded Pension Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
7.7: Many U.S. Households Have Tax-Advantaged Retirement Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
7.8: Rates of IRA or Defined Contribution Plan Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
7.9: Defined Contribution Plan Assets by Type of Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141
7.10: Design of 401(k) Employer Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
7.11: Employers with Simple Matches Use a Variety of Formulas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
7.12: Incidence of Investment Options Offered in 401(k) Plans by Type of Investment . . . . . . . . . . . . . . . . . . . . 144
7.13: 401(k) Asset Allocation Varied with Participant Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
7.14: Asset Allocation to Equities Varied Widely Among 401(k) Plan Participants . . . . . . . . . . . . . . . . . . . . . . . 147
7.15: Target Date Funds 401(k) Market Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
7.16: 401(k) Balances Tend to Increase with Participant Age and Job Tenure . . . . . . . . . . . . . . . . . . . . . . . . . . 149
7.17: IRA Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
7.18: Nearly 42 Million U.S. Households Owned IRAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
7.19: New Roth IRAs Often Are Opened with Contributions; New Traditional IRAs Often Are Opened with Rollovers . . . 153
7.20: Multiple Sources of Information Are Consulted for the Rollover Decision . . . . . . . . . . . . . . . . . . . . . . . . . 155
7.21: IRA Asset Allocation Varied with Investor Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
7.22: Roth IRA Investors Rarely Take Withdrawals; Traditional IRA Investors Are Heavily Affected by RMDs . . . . . . . . 158
7.23: Traditional IRA Withdrawals Among Retirees Often Are Used to Pay for Living Expenses . . . . . . . . . . . . . . . 159
7.24: Substantial Amount of Retirement Assets Are Invested in Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . 161
7.25: Majority of Mutual Fund Retirement Account Assets Were Invested in Equities . . . . . . . . . . . . . . . . . . . . . 162
7.26: Target Date and Lifestyle Mutual Fund Assets by Account Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
7.27: Section 529 Savings Plan Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
7.28: Characteristics of Households Saving for College . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .167
FIGURES
CHAPTER ONE
U.S.-Registered
Investment Companies
The largest segment of the asset management business in the
United States is made up of registered investment companies.
U.S.-registered investment companies play a major role in the
U.S. economy and financial markets, and a growing role in global
financial markets. These funds managed $18.2 trillion in assets at
year-end 2014, largely on behalf of more than 90 million U.S. retail
investors. The industry has experienced strong growth over the
past quarter century from asset appreciation and strong demand
from households due to rising household wealth, the aging U.S.
population, and the evolution of employer-based retirement systems.
Funds supplied investment capital in securities markets around the
world and were among the largest groups of investors in the U.S.
stock, commercial paper, and municipal securities markets.
$18 trillion
at year-end 2014
* The term investment companies or U.S. investment companies will be used at times throughout this
book in place of U.S.-registered investment companies. U.S.-registered investment companies are
open-end mutual funds, closed-end funds, exchange-traded funds, and unit investment trusts.
FIGURE 1.1
Mutual funds1
Closed-end
funds2
ETFs3
UITs
Total4
1997
$4,468
$152
$7
$85
$4,711
1998
5,525
156
16
94
5,790
1999
6,846
147
34
92
7,119
2000
6,965
143
66
74
7,247
2001
6,975
141
83
49
7,248
2002
6,383
159
102
36
6,680
2003
7,402
214
151
36
7,803
2004
8,096
253
228
37
8,614
2005
8,891
276
301
41
9,509
2006
10,398
297
423
50
11,168
2007
12,000
312
608
53
12,974
2008
9,603
184
531
29
10,347
2009
11,113
223
777
38
12,151
2010
11,833
238
992
51
13,113
2011
11,632
242
1,048
60
12,982
2012
13,052
264
1,337
72
14,725
2013
15,035
279
1,675
87
17,075
2014
15,852
289
1,974
101
18,217
1 Mutual
fund data include only mutual funds that report statistical information to the Investment Company Institute,
and do not include mutual funds that invest primarily in other mutual funds.
2 Closed-end fund data include preferred share classes.
3 ETF data prior to 2001 were provided by Strategic Insight Simfund. ETF data include investment companies not
registered under the Investment Company Act of 1940 and exclude ETFs that primarily invest in other ETFs.
4 Total investment company assets include mutual fund holdings of closed-end funds and ETFs.
Note: Data are for investment companies that report statistical information to the Investment Company Institute.
Assets of these companies are 98 percent of investor assets. Components may not add to the total because of
rounding.
Sources: Investment Company Institute and Strategic Insight Simfund
FIGURE1.2
The United States Has the Worlds Largest Mutual Fund and ETF Markets
Percentage of total net assets, year-end 2014
6%
Other Americas
11%
Africa and
Asia-Pacific
29%
Europe
* Includes ETFsboth registered and not registered under the Investment Company Act of 1940that invest primarily in
commodities, currencies, and futures.
Note: Components may not add to 100 percent because of rounding.
Sources: Investment Company Institute and International Investment Funds Association
Mutual funds reported $102 billion in net inflows in 2014, while other
registered investment companies also recorded positive net inflows. On net,
investors added $96 billion to long-term mutual funds. Money market funds
accounted for the other $6 billion. Mutual fund shareholders reinvested
$216billion in income dividends and $381 billion in capital gains distributions
that mutual funds paid out during the year. Investor demand for ETFs
continued to thrive with net share issuance (including reinvested dividends)
totaling $241 billion in 2014. Unit investment trusts (UITs) had new deposits of
$66 billion, up 18percent from 2013, and closed-end funds issued $5 billion in
new shares, on net.
100
80
60
40
20
10
2
1980
1985
1990
1995
2000
2005
2010
2014
Note: Household financial assets held in registered investment companies include household holdings of ETFs, closed-end
funds, UITs, and mutual funds. Mutual funds held in employer-sponsored DC plans, IRAs, and variable annuities
are included.
Sources: Investment Company Institute and Federal Reserve Board
11
FIGURE1.4
470
335 33 392
-461
2005
497
-107
687
-348 -46
-654
-1,159
2006
2007
2008
595
-84
2009
60 455
-281 -82
2010
481
257
-210
-230
-364
-335
2011
2012
431
416
-533
-455
-144
-156
2013
2014
* Data for long-term registered investment companies include mutual funds, variable annuities, ETFs, and closed-end
funds.
Note: Household net investments include net new cash flow and reinvested dividends.
Sources: Investment Company Institute and Federal Reserve Board
12
FIGURE1.5
43
43
1998
2000
2002
47
48
1998
2000
48
52
48
52
54
55
2010
2012
2014
47
48
2012
2014
37
29
22
1994
1996
2004
2006
2008
IRAs
49
51
43
42
46
49
34
1994
1996
2002
2004
2006
2008
2010
* DC plans include 401(k) plans, 403(b) plans, 457 plans, Keoghs, and other DC plans without 401(k) features.
Sources: Investment Company Institute, Federal Reserve Board, Department of Labor, National Association of
Government Defined Contribution Administrators, American Council of Life Insurers, and Internal Revenue Service
Statistics of Income Division .
13
46
30
26
46
19
24
17
5
U.S. corporate
equity
10
3
U.S. and
international
corporate bonds
23
11
<0.5
U.S. Treasury
and government
agency securities
3
U.S. municipal
securities
0
Commercial
paper
Mutual funds remained the largest investors in the U.S. commercial paper
marketan important source of short-term funding for major corporations
around the world. From year-end 2013 to year-end 2014, mutual funds share
of outstanding commercial paper remained steady at 46 percent. Money
market funds accounted for most of mutual fund commercial paper holdings,
and mutual fund holdings of commercial paper tend to fluctuate with investor
demand for prime money market funds and the supply of commercial paper.
14
80%
Independent fund advisers
5%
Insurance companies
5%
Banks or thrifts
2%
Brokerage firms
15
In 2014, 867 financial firms from around the world competed in the U.S.
market to provide investment management services to fund investors
(Figure1.8). In the 1980s and 1990s, low barriers to entry attracted many new
fund sponsors. But in the early 2000s, increased competition among these
sponsors and pressure from other financial products reversed those gains.
From year-end 2004 to year-end 2009, 248 fund sponsors left the business
but just 238 entered, for a net loss of 10 sponsors. Larger fund sponsors
acquiring smaller ones, fund sponsors liquidating funds and leaving the
business, and several large sponsors selling their fund advisory businesses
played a major role in the decline. The number of fund companies retaining
assets and attracting new investments generally has been lower since 2000
than in the 1990s (Figure1.9).
FIGURE1.8
755
692
693
691
709
58
47 48
44
46 44
698
682
706
40
53
43
39
82
49
29
2004
16
867
69
53
37
823
78
88
77
62
51
790
25
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
FIGURE1.9
Fund Complexes with Positive Net New Cash Flow to Long-Term Mutual Funds
Percentage of fund complexes, selected years
72
57
64
64
55
53
55
56
58
56
52
48
49
54
48
38
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2009 2010 2011 2012 2013 2014
2000
2005
2010
2014
Largest 5 complexes
32
36
42
43
Largest 10 complexes
44
47
55
55
Largest 25 complexes
69
69
74
74
Note: Data include only mutual funds and ETFs registered under the Investment Company Act of 1940. ETFs registered
as UITs are excluded.
17
Two other factors also contributed to rising industry concentration. First, the
growing popularity of index funds increased concentration, because the 10
largest fund complexes manage most of the assets in index mutual funds.
Actively managed domestic equity mutual funds incurred outflows for nine
consecutive years, thus reducing market share for middle-tier firms, while
index domestic equity funds had inflows in each of these years. Second,
strong inflows over the past decade to bond funds, which are fewer in
number and have fewer fund sponsors than equity mutual funds, helped
boost the share of assets managed by large fund complexes that offer bond
funds.
Nevertheless, in recent years, the number of sponsors has risen once again
as the economy and financial markets have recovered, with a net increase
of 185 from year-end 2009 to year-end 2014 (394 entering and 209 leaving)
(Figure1.8). Many of the entering firms took advantage of the series trust
a cost-effective management solution in which the funds sponsor arranges
for a third party to provide certain services (e.g., audit, trustee, some legal)
through a turnkey setup. The series trust allows the sponsor to focus more on
managing portfolios and gathering assets, and its operating costs are spread
across the funds in the trust.
18
286
2004
726
680
588
337
2005
710
538
437
230
251
871
207
2006
315
362
590
257
571
501
696
674
656
502
516
502
261
300
196
509
223
2007
333
2008
241
2009
2010
216
2011
306
2012
654
428
171
257
2013
362
130
232
2014
Note: Data include mutual funds that do not report statistical information to the Investment Company Institute and mutual
funds that invest primarily in other mutual funds.
19
20
While only some units of a UIT are sold in a public offering, a trust sponsor is likely to maintain
a secondary market, in which investors can sell their units back to the sponsor and other
investors can buy those units. Even absent a secondary market, UITs are required by law to
redeem outstanding units at their net asset value (NAV), which is based on the underlying
securities current market value.
FIGURE1.12
Number of trusts
15,000
160
140
120
100
12,000
10,414
92
80
26
74
60
23
4
40
62
20
0
48
49
19
4
26
36
17
4
15
36
13
3
19
37
11
3
23
41
10 2
29
50 53
9 2 8 2
39
43
38
29 10
6 2 4
20 25
51
13
4
34
60
16
4
41
5,381 101
87 12
3
72 12
4
16
4
86
71
52
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
9,000
6,000
3,000
21
Mutual funds*
Closed-end
funds
ETFs
UITs
Total
1997
6,778
485
19
11,593
18,875
1998
7,489
491
29
10,966
18,975
1999
8,003
510
30
10,414
18,957
2000
8,370
481
80
10,072
19,003
2001
8,518
489
102
9,295
18,404
2002
8,511
543
113
8,303
17,470
2003
8,426
581
119
7,233
16,359
2004
8,417
618
152
6,499
15,686
2005
8,449
634
204
6,019
15,306
2006
8,721
645
359
5,907
15,632
2007
8,745
662
629
6,030
16,066
2008
8,879
642
743
5,984
16,248
2009
8,611
627
820
6,049
16,107
2010
8,535
624
950
5,971
16,080
2011
8,673
632
1,166
6,043
16,514
2012
8,744
602
1,239
5,787
16,372
2013
8,974
599
1,332
5,552
16,457
2014
9,260
568
1,451
5,381
16,660
* Data include mutual funds that invest primarily in other mutual funds.
Note: Data are for investment companies that report statistical information to the Investment Company Institute.
Assets of these companies are 98 percent of investor assets. ETF data prior to 2001 were provided by Strategic Insight
Simfund. ETF data include investment companies not registered under the Investment Company Act of 1940 and ETFs
that invest primarily in other ETFs.
Sources: Investment Company Institute and Strategic Insight Simfund
22
149,000
154,000
1999
2000
168,000
146,000
157,000
159,000
166,000
2009
2011
2013
114,000
1997
2005
2007
23
FIGURE1.15
34%
Fund management
10%
Fund administration
30%
Investor servicing
26%
Sales and distribution
24
25
CHAPTER TWO
25 percent
at year-end 2014
This chapter describes recent U.S. mutual fund developments and examines the market factors that affect
the demand for equity, bond, hybrid, and money market funds.
Investor Demand for U.S. Mutual Funds......................................................................................................... 28
U.S. Mutual Fund Assets............................................................................................................................ 28
Investors in U.S. Mutual Funds.................................................................................................................. 29
Developments in Mutual Fund Flows............................................................................................................... 30.
The Global Economy and Financial Markets in 2014............................................................................... 31
Long-Term Mutual Fund Flows.................................................................................................................. 33
The Development of Alternative Strategies Funds.................................................................................. 43
The Growing Popularity of Index Funds................................................................................................... 45
Demand for Money Market Funds............................................................................................................. 48
28
FIGURE2.1
Equity Funds Held More Than Half of Total Mutual Fund Assets
Percentage of total net assets, year-end 2014
17%
Money market
52%
Equity
22%
Bond
9%
Hybrid
Total U.S. mutual fund assets: $15.9 trillion
29
FIGURE2.2
$12,496
Households1 long-term
mutual funds 2
Total mutual fund assets: $15,852 billion
Total long-term2 mutual fund assets: $13,127 billion
Total money market fund assets: $2,725 billion
Mutual funds held as investments in variable annuities and 529 plans are counted as household holdings of mutual
funds.
2 Long-term mutual funds include stock, hybrid, and bond mutual funds.
1
30
FIGURE2.3
879
412
388
159
229
504
375
129
472
53
75
121 216 210
-46 -263 -157
254
62
192
654
245
227
637
224
-48
-225
389
198
243
-539 -525
28 198
-124
-96
175 15
102 6
96
160
-150 -281
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013 2014
* In 2012, investors withdrew less than $500 million from money market funds.
Note: Components may not add to the total because of rounding.
31
Meanwhile, sharply falling oil and gasoline prices helped put more money in
consumers pockets. Inflation worries remained subdued as the Consumer
Price Index finished the year up a mere 0.7percent, with the core rate up only
1.6percent.
With the economy on firmer footing, the Federal Reserve decided to begin
reducing its most recent round of large scale purchases of long-term Treasury
and mortgage-backed bonds. While this might have been expected to put
upward pressure on long-term interest rates, they fell steadily over the
course of 2014. Yields on 10-year Treasury bonds fell from 2.9percent at the
beginning of 2014 to 2.2percent by year-end.Market participants cited a
variety of domestic and global factors as possibly contributing to this trend,
including lower expectations for long-term economic growth, the federal
funds rate, and inflation.
The recovering U.S. economy spurred a 3percent increase in after-tax
corporate profits in 2014, building on growth of 6percent in 2013. That, along
with few growth opportunities elsewhere in the world, helped drive the
total return on the S&P 500 to 14percent for the year. Stock prices faltered
briefly in October amid concerns about a possible triple dip recession in
Europe, lower oil prices, and the 2014 Ebola epidemic. A second, smaller
dip in worldwide stock prices occurred in mid-December over concerns that
plunging oil prices might damage oil producing economies, push Europe into
deflation, and threaten the U.S. energy renaissance.
U.S. stock and bond markets performed well in 2014, in part, because
overseas growth remained disappointingbuttressing demand for U.S.
securities. Economic growth in China slowed to 7percent and the eurozone
economy approached a near stall as possible deflation again became a
concern. European stock prices* were down 10percent for the year. In
December 2014, the European Central Bank announced its intention to start
its own quantitative easing in 2015. As a result of these factors, plus similar
easing in Japan, the value of the dollar rose 14 percent relative to both the
euro and the yen in 2014. Finally, at the end of 2014, European markets faced
renewed concern about Greece, and speculation that it might be forced out of
the eurozone, with unknown consequences for the European financial system.
32
LEARN MORE
For analysis
of long-term
fund flows, see
www.ici.org/
viewpoints/
view_15_
fund_flow_04.
33
Net New Cash Flow to Equity Funds Is Related to World Equity Returns
Monthly, 20002014
Percentage of total net assets
Percent
1.00
Total return 2
0.75
60
40
0.50
20
0.25
0.00
-0.25
-20
-0.50
-0.75
-40
-60
-1.00
2000
2002
2004
2006
2008
2010
2012
2014
Net new cash flow is the percentage of previous month-end equity fund assets, plotted as a six-month moving average.
total return on equities is measured as the year-over-yearpercent change in the MSCI All Country World Daily Total
Return Index.
Sources: Investment Company Institute and Morgan Stanley Capital International
1
2 The
34
FIGURE2.5
29
10
19
24
22
-15
-14
-2
33
0.2 3 2 9
-0.2
28
10
4
14
20
6
5
9
15
4
14
4
12
12
-0.2
8
4
10
-2 -6
-20
13 1
8 1
2
5
2
-5
-19
-20
15
5
-6 -2
-3
-3
-24
-4
-23
-19
Sept Oct
2013
Feb
Mar
Jul
Nov
-47
Dec
2014
* In December 2013, investors added $224 million to hybrid funds and withdrew $207 million from equity funds; in May
2014, investors withdrew $229 million from equity funds.
Note: Components may not add to the total because of rounding.
Outflows from equity funds late in the year were likely related, in part, to
market volatility. The Chicago Board Options Exchange Volatility Index (VIX),
which tracks the volatility of the S&P 500 index, is a widely used measure of
market risk. Values greater than 30 typically reflect a high degree of investor
fear and values less than 20 are associated with a period of market calm. In
2014, the daily VIX averaged just 14, but peaked at 26 in October and 24 in
December. By comparison, during 2013, when equity funds had strong inflows
throughout the year, the VIX never closed above 21. Lower stock market
volatility during the early part of 2014 likely helped sustain demand for equity
mutual funds.
35
* Measured by the MSCI All Country World ex-U.S. Total Return Index.
Measured by Shillers cyclically adjusted price-to-earnings ratio (CAPE).
36
80
60
40
20
80
82
84
86
88
90
92
94
96
98
00
02
04
06
08
10 12 14
Note: The turnover rate is an asset-weighted average. Data exclude mutual funds available as investment choices in
variable annuities.
Sources: Investment Company Institute, Center for Research in Security Prices, and Strategic Insight Simfund
37
Bond fund flows are typically correlated with the performance of bonds
(Figure2.7), which, in turn, is primarily driven by the U.S. interest rate
environment. In 2014, as long-term interest rates declined, bond prices, which
are inversely related to interest rates, rose. This boosted returns on bonds
and bond funds. Bond funds experienced net inflows of $44 billion in 2014,
compared with net outflows of $71 billion the prior year.
As 2014 progressed, investors interpreted low inflation, economic headwinds
from overseas, and continued slack in labor markets as signals that rates
would stay at low levels for the near future. Consequently, compared with
the prior year, bond fund investors became less concerned with mitigating
capital losses associated with rising long-term interest rates, which resulted
in lower demand for bond funds with shorter durations. In particular, shortand ultrashort-term bond funds experienced $21 billion in net inflows in 2014,
down from $32 billion in 2013. Meanwhile, long-duration bond fundssuch
as those whose investment mandates focus on mid- to long-term Treasury
bonds, corporate bonds, or mortgage-backed securitiesexperienced inflows
in 2014. Investors put $94 billion, on net, into these fund types in 2014, after
redeeming $50 billion on net in 2013. Investors redeemed $44 billion, on net,
from high-yield bond funds in 2014. Nearly all of these outflows occurred
after June, when the Fed raised concerns about overheating in the high-yield
bond market.
Despite several periods of market turmoil, bond funds have experienced
inflows through most of the past decade. Bond funds received $1.9 trillion in
net inflows and reinvested dividends since 2005 (Figure2.8). A number of
factors have helped sustain this long-term demand for bond funds.
38
FIGURE2.7
Percent
3.0
30
Total return 2
2.5
25
2.0
20
1.5
15
1.0
10
0.5
0.0
-0.5
-5
-1.0
-10
-1.5
-2.0
-15
-20
2000
2002
2004
2006
2008
2010
2012
2014
1 Net
new cash flow is the percentage of previous month-end bond fund assets, plotted as a three-month moving average.
Data exclude flows to high-yield bond funds.
2 The total return on bonds is measured as the year-over-yearpercent change in the Citigroup Broad Investment Grade
Bond Index.
Sources: Investment Company Institute and Citigroup
FIGURE2.8
Bond Funds Have Experienced Net Inflows Through Most of the Past Decade
Cumulative flows to bond mutual funds, billions of dollars; monthly, 20052014
2,500
2,000
1,500
1,000
500
4
c1
14
De
Ma
t1
Oc
r1
12
g
Ma
12
n
Au
11
Ja
10
Ju
0
r1
No
09
Ap
09
Se
Fe
l0
Ju
c0
07
De
Ma
t0
r0
Oc
05
g
Ma
Au
Ja
05
Note: Bond mutual fund flows include net new cash flow and reinvested dividends. Data exclude mutual funds that invest
primarily in other mutual funds.
39
The aging of the U.S. population has played an important role in boosting
inflows to bond funds. Surveys indicate that willingness to take investment
risk declines as investors age. In a 2014 survey of households, 25percent of
those aged 35 to 49 indicated that they were willing to take above-average
or substantial investment risk (Figure2.9). In comparison, only 12percent of
those aged 65 and older were willing to take such risks.
FIGURE2.9
24
23
12
Younger than 35
35 to 49
50 to 64
65 or older
Older investors also tend to have higher account balances because they have
had more time to accumulate savings and take advantage of compounding.
For example, in 2014, households in which the head was younger than 35
held just 6percent of households mutual fund assets, whereas households
headed by 55- to 64-year-olds held 25percent of households mutual fund
assets (Figure2.10). Larger mutual fund holdings of older age groups,
combined with the tendency of investors to shift toward fixed-income
products as they approach retirement, implies an underlying demand for
bond funds by older investors.
40
FIGURE2.10
15
27
27
10
20
19
21
23
27
31
32
25
33
31
28
30
14
6
2005
15
4
2010
15
4
2013
16
26
31
18
21
13
12
1995
2000
6
2014
Note: Age is based on the age of the sole or co-decisionmaker for household saving and investing.
The continued popularity of target date mutual funds also has helped
maintain demand for bond funds. Target date mutual funds invest in
a changing mix of equities and fixed-income investments. As the fund
approaches and passes its target date (which is usually specified in the funds
name), the fund gradually reallocates assets away from equities toward
bonds. Target date mutual funds usually invest through a fund-of-funds
approach, meaning they primarily hold and invest in shares of other equity
and bond mutual funds. Over the past 10 years, target date mutual funds
have garnered inflows of $433 billion. In 2014, target date mutual funds had
net inflows of $45 billion and ended the year with assets of $703 billion.
The growing investor interest in these funds likely reflects their automatic
rebalancing features as well as their inclusion as an investment option in
many defined contribution plans. Also, following the adoption of the Pension
Protection Act of 2006, many defined contribution plans have selected target
date funds as a default option for the investments of newly enrolled plan
participants (see chapter 7).
LEARN MORE
Trends in the
Expenses and
Fees of Mutual
Funds, 2014.
Available at
www.ici.org/
perspective.
41
4
c1
14
De
ly
14
Ju
13
Ja
ly
13
Ju
12
Ja
ly
12
Ju
11
Ja
ly
11
Ju
10
Ja
ly
10
Ju
09
Ja
ly
09
Ju
08
Ja
ly
08
Ju
07
Ja
ly
Ju
Ja
07
Note: Hybrid mutual fund flows include net new cash flow and reinvested dividends. Data exclude mutual funds that
invest primarily in other mutual funds.
42
43
Alternative Strategies Mutual Funds Have Grown Rapidly Since the 2008 Financial Crisis
Cumulative flows to alternative strategies mutual funds, billions of dollars; monthly, 20072014
140
120
100
80
60
40
20
0
4
c1
14
De
ly
14
Ju
13
Ja
ly
13
Ju
12
Ja
ly
12
Ju
11
Ja
ly
11
Ju
10
Ja
ly
10
Ju
09
Ja
ly
09
Ju
08
Ja
ly
08
Ju
07
Ja
ly
Ju
Ja
07
-20
Note: Alternative strategies mutual fund flows include net new cash flow and reinvested dividends. Data exclude mutual
funds that invest primarily in other mutual funds.
44
49
34
38
61
40
35 2 7
2 6
25
26 2 27
2 8 1 7 2
31
21
18
17
28
16
28
8
8
11
33
8
11
14
17
28
35
10
31
59
56
58
55
27
24
20
29
19
17
16
14
18
15
25
28
52
61
-6
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Note: Components may not add to the total because of rounding.
45
Index equity mutual funds accounted for the bulk of index mutual fund assets
at year-end 2014. Eighty-twopercent of index mutual fund assets were
invested in funds that track the S&P 500 or other domestic or international
stock indexes (Figure2.14). Mutual funds indexed to the S&P 500 managed
33percent of all assets invested in index mutual funds. The share of assets
invested in index equity mutual funds relative to all equity mutual funds
assets moved up to 20percent in 2014 (Figure2.15).
FIGURE2.14
Funds Indexed to the S&P 500 Held 33Percent of Index Mutual Fund Assets
Percent, year-end 2014
12%
World equity
33%
S&P 500
18%
Bond and hybrid
37%
Other domestic equity
Total: $2.1 trillion
FIGURE2.15
9.4
10.2
10.9
11.4
11.6
11.4
11.6
11.8
13.4
14.0
14.9
16.4
17.3
18.4
20.2
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
46
Some of the Outflows from Domestic Equity Mutual Funds Have Gone to ETFs
Cumulative flows to and net share issuance of domestic equity mutual funds and index ETFs, billions
of dollars; monthly, 20072014
1,000
Index domestic
equity mutual funds
800
600
400
200
-200
-400
-600
4
c1
14
De
ly
14
Ju
13
Ja
ly
13
Ju
12
Ja
ly
12
Ju
11
Ja
ly
11
Ju
10
Ja
ly
10
Ju
09
Ja
ly
09
Ju
08
Ja
ly
08
Ju
07
Ja
ly
Ju
Ja
07
-800
Note: Equity mutual fund flows include net new cash flow and reinvested dividends. Data exclude mutual funds that invest
primarily in other mutual funds.
47
FIGURE2.17
80
9
46
12
44
9
6
36
30
16
-2
5
4
-27
30
36
13
2
-9
-16
-9 -2
-13
-30
-29
-12 -1
Sept
22
Jan
1
-17
-16
-13
Feb
-58
Apr
May
3
-1 -18
-17
-29
-47 -1
Mar
3
10
-6
Jun
-20
-3
-16
Jul
23
36
19
22 1
19
3
13
8
-12
41
-3
-2
Aug* Sept
Oct
Nov
Dec
2014
* In November 2013, investors withdrew $414 million from tax-exempt money market funds; in August 2014, investors
added $225 million to tax-exempt money market funds.
Note: Components may not add to the total because of rounding.
48
Net New Cash Flow to Retail and Institutional Money Market Funds
Billions of dollars, 20002014
Retail
Institutional
654
375
36
159
44
116
245
96
339
34
-80
-46
-68
-89
-151 -157
-112
-263
173
637
114
482
523
62 2
149
60
-231
-123
1
-1
15 27 6 37
-12
-31
-1
-401 -124
-308
-124
-539 -525
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013 2014
* In 2012, investors added $1 billion to institutional money market funds and withdrew $1 billion from retail money market
funds. On net, investors withdrew less than $500 million from money market funds. Components may not add to the
total because of rounding.
49
37
28
21
28
28
23
21
21
23
31
24
23
23
23
23
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Note: U.S. nonfinancial businesses short-term assets consist of foreign deposits, checkable deposits, time and savings
deposits, money market funds, repurchase agreements, and commercial paper.
Sources: Investment Company Institute and Federal Reserve Board
50
Individual investors tend to withdraw cash from money market funds when
the difference between yields on money market funds and interest rates on
bank deposits narrows or becomes negative. Because of Federal Reserve
monetary policy, short-term interest rates remained near zero in 2014. Yields
on money market funds, which track short-term open market instruments
such as Treasury bills, also hovered near zero and remained below yields on
money market deposit accounts offered by banks (Figure2.20). Retail money
market funds, which principally are sold to individual investors, saw a net
outflow of $31 billion in 2014, following a net outflow of $12 billion in 2013
(Figure2.18).
LEARN MORE
Money Market
Fund Resource
Center.
Available at
www.ici.org/
mmfs.
FIGURE2.20
Net New Cash Flow to Taxable Retail Money Market Funds Is Related to Interest
Rate Spread
Monthly, 20002014
Percentage of total net assets
Percentage points
-1
-1
-2
-3
2000
-2
Net new
cash flow1
2002
2004
2006
2008
2010
2012
2014
-3
1 Net
new cash flow is thepercentage of previous month-end taxable retail money market fund assets, plotted as a
six-month moving average.
2 The interest rate spread is the difference between the taxable retail money market fund yield and the average interest
rate on money market deposit accounts.
Sources: Investment Company Institute, iMoneyNet, and Bank Rate Monitor
51
52
The U.S. Securities and Exchange Commission (SEC) has amended Rule 2a-7,
a regulation governing money market funds, several times since 1983, placing
greater limits on the maturity and credit quality of the securities that the
funds hold, adding diversification requirements, requiring minimum levels of
liquidity for the funds, and increasing their disclosure requirements.
In response to the financial crisis, the SEC significantly reformed Rule 2a-7
in 2010. Among other things, these reforms required money market funds
to hold a certain amount of liquidity and imposed stricter maturity limits.
One outcome of these provisions is that prime funds have become more
like government money market funds. To a significant degree, prime funds
adjusted to the SECs 2010 amendments to Rule 2a-7 by adding to their
holdings of Treasury and agency securities. They also boosted their assets
in repurchase agreements (repos). A repo can be thought of as a shortterm collateralized loan, such as to a bank or other financial intermediary.
Repos are collateralizedtypically by Treasury and agency securitiesto
ensure that the loan is repaid. Prime fund holdings of Treasury and agency
securities and repos have risen substantially as a share of the fund portfolios,
from 12percent in May 2007 to a peak of 36percent in November 2012
(Figure2.21). In December 2014, this share was 31percent of prime fund
assets, still more than double the value prior to the financial crisis and
subsequent reforms.
FIGURE2.21
Prime Money Market Fund Holdings of Treasury and Agency Securities and
Repurchase Agreements
Percentage of prime funds total net assets; month-end, 20002014
40
36
35
31
30
25
20
15
12
10
5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
In July 2014, the SEC adopted additional rules for money market funds,
further limiting the use of amortized cost for institutional funds that invest in
nongovernment securities, and requiring that such funds price their shares to
the nearest one-hundredth of a cent. Additionally, under the July 2014 rules,
nongovernment money market fund boards can impose liquidity fees and
gates (a temporary suspension of redemptions) when a funds weekly liquid
assets fall below 30percent of its total assets (the regulatory minimum). The
final rules also include additional diversification, disclosure, and stress testing
requirements, as well as updated reporting by money market funds. Because
the new rules will not be fully implemented until late 2016, it is not yet clear
how the SECs 2014 rules will affect investor demand for money market funds.
53
54
See the 2014 Fund Reclassification page in the data table section on page 170
2014 Open-End Mutual Fund Reclassification FAQs, available at www.ici.org/research/
stats/iob_update/iob_faqs
55
CHAPTER THREE
Exchange-Traded Funds
Investors seeking to gain or shed exposure to broad market indexes,
particular sectors or geographical regions, or specific rules-based
investment strategies find that ETFs are a convenient, cost-effective
tool to achieve these objectives. Over the past decade, demand for
ETFs has grown markedly as investorsboth institutional and retail
increasingly turn to them as investment options. In the past 10 years,
more than $1.4 trillion of net new ETF shares have been issued. With
the increase in demand, sponsors have offered more ETFs with a
greater variety of investment objectives. With nearly $2.0 trillion
in assets, the U.S. ETF industry remained the largest in the world
at year-end 2014. While ETFs share some basic characteristics with
mutual funds, there are key operational and structural differences
between the two types of investment products.
Nearly
$2.0 trillion
at year-end 2014
This chapter provides an overview of exchange-traded funds (ETFs)how they are created, how they
trade, how they differ from mutual funds, the demand by investors for ETFs, and the characteristics of
ETF-owning households.
What Is an ETF?.................................................................................................................................................. 58
U.S. ETF Assets................................................................................................................................................... 59
Origination of an ETF......................................................................................................................................... 61
Creation and Redemption of ETF Shares.................................................................................................. 62
How ETFs Trade.................................................................................................................................................. 64
Primary Market Activity and Secondary Market Trading in ETF Shares................................................ 66
ETFs and Mutual Funds...................................................................................................................................... 67
Key Differences........................................................................................................................................... 68
Demand for ETFs................................................................................................................................................ 69
Characteristics of ETF-Owning Households................................................................................................... 75
What Is an ETF?
LEARN MORE
Frequently
Asked
Questions
About ETF
Basics and
Structure.
Available at
www.ici.org/
pubs/faqs.
An ETF is a pooled investment vehicle with shares that can be bought and
sold throughout the day on a stock exchange at a market-determined price.
Investors may buy or sell ETF shares through a broker or in a brokerage
account just as they would the shares of any publicly traded company. In the
United States, most ETFs are structured as open-end investment companies
(open-end funds) or unit investment trusts, but some ETFsprimarily those
investing in commodities, currencies, and futureshave different structures.
ETFs have been available as an investment product for more than 20 years
in the United States. The first ETFa broad-based domestic equity fund
tracking the S&P 500 indexwas introduced in 1993 after a fund sponsor
received U.S. Securities and Exchange Commission (SEC) exemptive relief
from various provisions of the Investment Company Act of 1940 that would
not otherwise allow the ETF structure. Until 2008, SEC exemptive relief was
granted only to ETFs that tracked designated indexes. These ETFs, commonly
referred to as index-based ETFs, are designed to track the performance of
their specified indexes or, in some cases, a multiple of or an inverse (or a
multiple of an inverse) of their indexes.
58
In early 2008, the SEC first granted exemptive relief to several fund
sponsors to offer fully transparent, actively managed ETFs meeting certain
requirements. Each business day, these actively managed ETFs must disclose
on their publicly available websites the identities and weightings of the
component securities and other assets held by the ETF. Actively managed
ETFs do not seek to track the return of a particular index. Instead, an actively
managed ETFs investment adviser, like that of an actively managed mutual
fund, creates a unique mix of investments to meet a particular investment
objective and policy.
EXCHANGE-TRADED FUNDS
59
LEARN MORE
FAQs About
the U.S.
ETF Market.
Available at
www.ici.org/
pubs/faqs.
The vast majority of assets in U.S. ETFs are in funds registered with and
regulated by the SEC under the Investment Company Act of 1940 (Figure3.2).
At year-end 2014, about 3percent of assets were held in ETFs that are not
registered with or regulated by the SEC under the Investment Company
Act of 1940; these ETFs invest primarily in commodities, currencies, and
futures. Non1940 Act ETFs that invest in commodity or currency futures are
regulated by the Commodity Futures Trading Commission (CFTC) under the
Commodity Exchange Act and by the SEC under the Securities Act of 1933.
Those that invest solely in physical commodities or currencies are regulated
by the SEC under the Securities Act of 1933.
FIGURE3.2
1,974
57
608 29
423 15
151
151
2003
1,675
64
531 36
228 1 301 5
408
296
226
580
496
2004
777
75
703
992
101
1,048
109
891
939
1,337
120
1,611
1,918
1,217
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Number of ETFs
119
152
204
359
629
728
797
923
1,134
1,194
1,294
1,411
1 The
funds in this category are not registered under the Investment Company Act of 1940 and invest primarily in
commodities, currencies, and futures.
2 The funds in this category are registered under the Investment Company Act of 1940.
Note: Data for ETFs that invest primarily in other ETFs are excluded from the totals. Components may not add to the total
because of rounding.
60
Origination of an ETF
An ETF originates with a sponsora company or financial institutionthat
chooses the investment objective of the ETF. In the case of an index-based
ETF, the sponsor chooses both an index and a method of tracking its target
index. Index-based ETFs track their target index in various ways. Many
early ETFs tracked traditional indexes, mostly those weighted by market
capitalization. More-recently launched index-based ETFs follow benchmarks
that use an array of index construction methodologies, with weightings
based on market capitalization, as well as other fundamental factors, such as
sales or book value. Others follow factor-based metricsindexes that first
screen potential securities for a variety of attributes, including value, growth,
or dividend paymentsand then weight the selected securities equally
or by market capitalization. Other customized index approaches include
screening, selecting, and weighting securities to minimize volatility, maximize
diversification, or achieve a high or low degree of correlation with the market.
An index-based ETF may replicate its index (that is, it may invest 100percent
of its assets proportionately in all the securities in the target index) or it may
sample its index by investing in a representative sample of securities in the
target index. Representative sampling is a practical solution for ETFs that
track indexes containing thousands of securities (such as broad-based or total
stock market indexes), that have restrictions on ownership or transferability
(certain foreign securities), or that are difficult to obtain (some fixed-income
securities).
The sponsor of an actively managed ETF also determines the investment
objective of the fund and may trade securities at its discretion, much like an
actively managed mutual fund. For instance, the sponsor may try to achieve
an investment objective such as outperforming a segment of the market or
investing in a particular sector through a portfolio of stocks, bonds, or other
assets.
EXCHANGE-TRADED FUNDS
61
Each business day, ETFs are required to provide the makeup of the creation
and redemption baskets for the next trading day. The creation/redemption
baskets are specific lists of names and quantities of securities, cash, and/or
other assets. Often baskets will track the ETFs portfolio through either a pro
rata slice or a representative sample, but, at times, baskets may be limited to
a subset of the ETFs portfolio and contain a cash component. For example,
the composition of baskets for bond ETFs may vary day to day with the mix
of cash and the selection of bonds in the baskets based on liquidity in the
underlying bond market. Typically, the composition of an ETFs daily creation
and redemption baskets mirror one another.
Creation
The creation/redemption mechanism in the ETF structure allows the number
of shares outstanding in an ETF to expand or contract based on demand
(Figure3.3). When ETF shares are created or redeemed, this is categorized
as primary market activity. ETF shares are created when an authorized
participanttypically a large institutional investor, such as a market maker
or broker-dealer that has entered into a legal contract with an ETFsubmits
an order for one or more creation units. A creation unit consists of a specified
number of ETF shares, generally ranging from 25,000 to 250,000 shares.
The ETF shares are delivered to the authorized participant when the specified
creation basket is transferred to the ETF. The ETF may permit or require an
authorized participant to substitute cash for some or all of the securities or
assets in the creation basket, particularly when an instrument in the creation
basket is difficult to obtain or may not be held by certain types of investors
(such as certain foreign securities). An authorized participant also may be
charged a cash adjustment and/or transaction fee to offset any transaction
expenses the fund undertakes. The value of the creation basket and any cash
adjustment equals the value of the creation unit based on the ETFs net asset
value (NAV) at the end of the day on which the transaction was initiated.
62
FIGURE3.3
Authorized
participant
Sell shares
to client
Secondary
market
Sell shares on
an exchange
Other
investors
Note: The creation basket represents a specific list of securities, cash, and/or other assets.
The authorized participant can either keep the ETF shares that make up the
creation unit or sell all or part of them to its clients or to other investors
on a stock exchange. These sales by the authorized participant, along with
any subsequent purchases and sales of these existing ETF shares among
investors, are referred to as secondary market activity.
EXCHANGE-TRADED FUNDS
63
Redemption
The redemption process in the primary market is simply the reverse. A
creation unit is redeemed when an authorized participant acquires the
number of ETF shares specified in the ETFs creation unit and returns the
creation unit to the ETF. In return, the authorized participant receives the daily
redemption basket of securities, cash, and/or other assets. The total value of
the redemption basket is equivalent to the value of the creation unit based on
the ETFs NAV at the end of the day on which the transaction was initiated.
64
When there are discrepancies between an ETFs share price and the value of
its underlying securities, trading can more closely align the ETFs price and
its underlying value. For example, if an ETF is trading at a discount to its
underlying value, investors may buy ETF shares and/or sell the underlying
securities. The increased demand for the ETF should raise its share price
and the sales of the underlying securities should lower their share prices,
narrowing the gap between the ETF and its underlying value. If the ETF is
trading at a premium to its underlying value, investors may choose to sell the
ETF and/or buy the underlying securities. These actions should reduce the
ETF share price and/or raise the price of the underlying securities, bringing
the price of the ETF and the market value of its underlying securities closer
together.
The ability of authorized participants to create or redeem ETF shares at
the end of each trading day also helps an ETF trade at market prices that
approximate the underlying market value of the portfolio. When a deviation
between an ETFs market price and its underlying value occurs, authorized
participants may create or redeem creation units in the primary market in an
effort to capture a profit. For example, when an ETF is trading at a discount,
authorized participants may find it profitable to buy the ETF shares and sell
short the underlying securities. At the end of the day, authorized participants
return ETF shares to the fund in exchange for the ETFs redemption basket,
which they use to cover their short positions. When an ETF is trading at a
premium, authorized participants may find it profitable to sell short the ETF
during the day while simultaneously buying the underlying securities. At the
end of the day, the authorized participant will deliver the creation basket to
the ETF in exchange for ETF shares that they use to cover their short sales.
These actions by authorized participants, commonly described as arbitrage
opportunities, help keep the market-determined price of an ETFs shares close
to its underlying value.
EXCHANGE-TRADED FUNDS
LEARN MORE
Understanding
ExchangeTraded
Funds: How
ETFs Work.
Available at
www.ici.org/
perspective.
65
Investors can trade ETFs in the primary market and the secondary market.
In the primary market, authorized participants create or redeem ETF shares,
whereas in the secondary market, investors purchase or sell securities on
stock exchanges, in dark pools (private exchanges), and in other trading
venues. Many large institutional investors can access ETFs in both the
primary and secondary markets, while most retail investors access ETFs in
the secondary market. Investors involved in many of these ETF secondary
market trades generally are not motivated by arbitrage (i.e., the desire to
make a profit from the difference between the market price of the ETF and its
underlying value). These investors do not interact with the ETF directly and
do not create transactions in the underlying securities, because only the ETF
shares are trading hands.
Across all ETFs, investors use the secondary market more than the primary
market when trading ETFs (Figure3.4). On average, 90percent of the total
daily activity in ETFs occurs on the secondary market. Even for ETFs with
narrower investment objectivessuch as emerging markets equity, domestic
high-yield bond, and emerging markets bondthe bulk of the trading
occurs on the secondary market (94percent, 83percent, and 78percent,
respectively). On average, secondary market trading is a smaller proportion
(81percent) of total trading for bond ETFs than for equity ETFs (91percent).
Because bond ETFs are a growing segment of the industry, many small bond
ETFs tend to have less-established secondary markets. As they increase their
assets under management, the secondary market for bond ETFs is likely to
deepen naturally.
66
FIGURE3.4
90
All3
91
94
92
91
83
81
Equity
Domestic
equity
International
equity
Equity
Bond
Emerging
markets
equity
Domestic
high-yield
bond
78
Emerging
markets
bond
Memo
Measured as average daily dollar volume of ETF shares traded in each category over the 375 daily observations in the
sample.
2 Measured as the sum of primary market and secondary market activity. Primary market activity is computed as daily
creations or redemptions for each ETF, which are estimated by multiplying the daily change in shares outstanding by
the daily NAV from Bloomberg. Aggregate daily creations and redemptions are computed by adding creations and
the absolute value of redemptions across all ETFs in each investment objective each day. Average daily creations and
redemptions are the average of the aggregate daily creations and redemptions over the 375 daily observations in the
sample.
3 All is the weighted average of equity, bond, hybrid, and commodity ETF market activity.
Sources: Investment Company Institute and Bloomberg
1
EXCHANGE-TRADED FUNDS
67
Key Differences
LEARN MORE
FAQs About
How ETFs
Compare
with Other
Investments.
Available at
www.ici.org/
pubs/faqs.
One major difference is that retail investors buy and sell ETF shares on the
secondary market (stock exchange) through a broker-dealer, much like they
would any other type of stock. In contrast, mutual fund shares are not listed
on stock exchanges, but are purchased and sold by the fund company. Retail
investors buy and sell mutual fund shares through a variety of distribution
channels, including through investment professionalsfull-service brokers,
independent financial planners, bank or savings institution representatives, or
insurance agentsor directly from a fund company or discount broker.
Pricing also differs between mutual funds and ETFs. Mutual funds are
forward priced, which means that although investors can place orders to
buy or sell shares throughout the day, all orders placed during the day will
receive the same pricethe NAVthe next time it is computed. Most mutual
funds calculate their NAV as of 4:00 p.m. eastern time because that is the
time U.S. stock exchanges typically close. In contrast, the price of an ETF
share is continuously determined on a stock exchange. Consequently, the
price at which investors buy and sell ETF shares on the secondary market may
not necessarily equal the NAV of the portfolio of securities in the ETF. Two
investors selling the same ETF shares at different times on the same day may
receive different prices for their shares, both of which may differ from the
ETFs NAV.
68
241
180
151
9
56 1
16
16
55
57 3
54
74 8
142
185
9
177
11
116
167
118 3
28
88
66
118 8
242
176
110
210
115
-30
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
-1
2014
1 The
funds in this category are not registered under the Investment Company Act of 1940 and invest primarily in
commodities, currencies, and futures.
2 The funds in this category are registered under the Investment Company Act of 1940.
Note: Data for ETFs that invest primarily in other ETFs are excluded from the totals. Components may not add to the total
because of rounding.
EXCHANGE-TRADED FUNDS
69
In 2014, changes in investor demand for specific types of ETFs were likely
related to relative performance across the stock, bond, and commodity
markets. Continued gains in major U.S. stock indexes and declining longterm interest rates in the United States spurred demand for domestic equity
and bond ETFs (Figure3.6). Net issuance of broad-based domestic equity
ETFs increased to $102 billion in 2014 from $99 billion in 2013 and domestic
sector equity ETFs experienced net issuance of $41 billion in 2014, up from
$34billion in 2013. In contrast, demand for global and international equity
ETFs slowed in 2014 with $47 billion in net issuance, down from $63 billion in
2013. Bond and hybrid ETFs saw net issuance of $53 billion in 2014, up from
$13 billion in 2013, and commodity ETFs had net redemptions of $1 billion in
2014, compared with net redemptions of $30 billion in 2013.
FIGURE3.6
2012
2013
2014
99 102
58
34
41
52
63
47
14
53
53
13
9
-1
Broad-based
domestic equity
Domestic
sector equity
Global/International
equity
Bond and
hybrid1
-30
Commodities2
1 Bond
ETFs represented 97percent of flows in the bond and hybrid category in 2014.
category includes fundsboth registered and not registered under the Investment Company Act of 1940that
invest primarily in commodities, currencies, and futures.
Note: Data for ETFs that invest primarily in other ETFs are excluded from the totals.
2 This
70
ETFs have been available for the past 20 years, and in that time, large-cap
domestic equity ETFs have accounted for the largest proportion of all ETF
assets28percent, or $556 billion, at year-end 2014 (Figure3.7). Solid
performance in international stock markets and strong investor demand over
the past six years has made global/international equity ETFs the secondlargest category with 21percent ($415 billion) of all ETF assets. Bond and
hybrid ETFs accounted for 15percent ($299 billion) of all ETF assets.
FIGURE3.7
299
268
229
184
101
Large-cap
Mid-cap
141
94
Small-cap
57
45
Other
Domestic
sector
equity
Global
International 1 Emerging
markets
Bond Commodities 3
and
hybrid 2
Global/International
equity
1 This
EXCHANGE-TRADED FUNDS
71
LEARN MORE
Nine
Questions
Every ETF
Investor Should
Ask Before
Investing.
Available
at www.
understand
ETFs.org.
Increased investor demand for ETFs led to a rapid increase in the number of
ETFs created by fund sponsors in the past decade (Figure3.8). From yearend 2003 to year-end 2014, 1,645 ETFs were createdthe peak years came
in 2007, with 270 new funds, and 2011, with 226 new funds. In 2014, 176
ETFs were created. Few ETFs had been liquidated until 2008 when market
pressures appeared to come into play and sponsors began liquidating ETFs
that had failed to gather sufficient assets. Liquidations occurred primarily
among ETFs tracking virtually identical indexes, those focusing on specialty
or niche indexes, or those using alternative weighting methodologies. In 2012,
the number of liquidations jumped to 81 as two sponsors exited the indexbased ETF market. In 2014, 59 ETFs were liquidated. On net, there were 117
more ETFs at year-end 2014 than at year-end 2013, bringing the total number
of ETFs to 1,411.
FIGURE3.8
Number of ETFs
20032014
2003
Created
Liquidated/Merged
Total at year-end
10
119
2004
35
152
2005
52
204
2006
156
359
2007
270
629
2008
149
50
728
2009
120
49
797*
2010
177
51
923
2011
226
15
1,134
2012
141
81
1,194
2013
143
46
1,294*
2014
176
59
1,411
* The difference between the number of ETFs created and liquidated may not equal the difference between the total
number of ETFs at year-end because of conversions. In 2009, two ETFs converted from holding securities directly
to investing primarily in other ETFs. In 2013, three ETFs converted from investing primarily in other ETFs to holding
securities directly.
Note: ETF data include ETFs not registered under the Investment Company Act of 1940 but exclude ETFs that invest
primarily in other ETFs.
72
As demand for ETFs has grown, ETF sponsors have offered not only a greater
number of funds, but a greater variety, including ETFs investing in particular
market sectors, industries, or commodities (either directly or through the
futures market). At year-end 2014, there were 318 commodity and domestic
sector equity ETFs, with commodity ETFs representing the largest category
at 26percent (Figure3.9). The second-largest category, natural resource
ETFs, which hold securities of publicly traded companies involved in mining or
production of natural resources, accounted for 17 percent of the total number
of sector and commodity ETFs. Commodity and domestic sector equity ETFs
altogether held $324 billion in assets. Although commodity ETFs remained
the largest category in this group with 18percent of net assets at year-end
2014, their share was down from 24percent at year-end 2013. Tepid demand
for commodity ETFs and weakness in gold and silver prices were the primary
drivers behind the drop in commodity ETF assets in 2014.
ETF sponsors continued building on recent innovations by launching
additional actively managed ETFs. During 2014, 53 actively managed ETFs
were launched, bringing the total number of actively managed ETFs to 111,
with nearly $17 billion in assets at year-end.
EXCHANGE-TRADED FUNDS
73
FIGURE3.9
26%
Commodities*
12%
Technology
6%
Real estate
8%
Consumer
17%
Natural resources
9%
Health
12%
Financial
10%
Consumer
13%
Real estate
13%
Natural resources
18%
Commodities*
12%
Financial
12%
Health
74
93
65
89
Equity
85
Bond
53
Hybrid
46
Money market
60
Individual equities
73
Individual bonds
23
28
41
EXCHANGE-TRADED FUNDS
75
LEARN MORE
For analysis
on exchangetraded funds,
visit
www.ici.org/
viewpoints/
etfs.
FIGURE3.11
All U.S.
households
Households
owning
ETFs
Households
owning
mutual
funds
Households
owning
individual
equities
51
51
51
53
$50,000
$110,000
$85,000
$90,000
$75,500
$500,000
$200,000
$330,000
Median
Age of head of household1
Household
income2
Household financial
assets3
Percentage of households
Household primary or co-decisionmaker for saving and investing
Married or living with a partner
58
73
73
72
32
64
49
52
60
72
77
72
28
28
23
29
IRA(s)
34
75
62
63
46
74
85
72
Widowed
Household owns
1 Age
76
6
21%
25
12
31%
37
49%
35
9
49
41
35
10
All U.S.
households
10
Mutual fundowning
households
EXCHANGE-TRADED FUNDS
6 4
ETF-owning
households
77
CHAPTER FOUR
Closed-End Funds
Closed-end funds are one of four types of investment companies,
along with mutual (or open-end) funds, exchange-traded funds
(ETFs), and unit investment trusts. Closed-end funds generally
issue a fixed number of shares that are listed on a stock exchange
or traded in the over-the-counter market. The assets of a closedend fund are professionally managed in accordance with the funds
investment objectives and policies, and may be invested in stocks,
bonds, and other securities.
59 percent
This chapter describes recent closed-end fund developments and provides a profile of the U.S.
households that own them.
What Is a Closed-End Fund?............................................................................................................................. 80
Total Assets of Closed-End Funds................................................................................................................... 81
Net Issuance of Closed-End Funds.................................................................................................................. 83
Closed-End Fund Distributions........................................................................................................................ 84
Closed-End Fund Leverage............................................................................................................................... 85
Characteristics of Households Owning Closed-End Funds........................................................................... 88
80
LEARN MORE
The ClosedEnd Fund
Market, 2014.
Available at
www.ici.org/
perspective.
FIGURE4.1
253
276
297
312
223
238
242
264
279
289
184
2004
2005
2007
2008
2009
2010
2011
2012
2013
2014
642
627
624
632
602
599
568
CLOSED-END FUNDS
2006
81
Historically, bond funds have accounted for a large share of assets in closedend funds. A decade ago, 68 percent of all closed-end fund assets were held
in bond funds with the remainder held in equity funds (Figure4.2). At yearend 2014, assets in bond closed-end funds were $170 billion, or 59percent of
closed-end fund assets. Equity closed-end fund assets totaled $119 billion, or
41percent of closed-end fund assets. These relative shares have shifted, in
part because cumulative net issuance of equity closed-end fund shares has
exceeded that of bond fund shares over the past eight years. In addition, total
returns on U.S. stocks* averaged 8.1percent annually from year-end 2004 to
year-end 2014, while total returns on bonds averaged 4.8percent annually.
FIGURE4.2
37%
Domestic municipal bond
25%
Domestic equity
7%
Global/International equity
25%
Domestic taxable bond
2004 total assets: $253 billion
8%
Global/International bond
31%
Domestic equity
31%
Domestic municipal bond
11%
Global/International equity
20%
Domestic taxable bond
2014 total assets: $289 billion
Note: Components do not add to 100percent because of rounding.
82
Equity
Total
Total
Bond
Global/
Domestic International
Total
Domestic
taxable
Domestic
Global/
municipal International
2007 $28,369
$24,608
$4,949
$19,659
$3,761
$1,966
-$880
$2,675
2008 -22,298
-8,739
-7,052
-1,687
-13,560
-6,770
-6,089
-700
2009
-3,259
-2,520
-2,366
-154
-739
-788
-238
287
2010
5,430
2,054
1,995
59
3,376
1,900
1,119
357
2011
6,018
4,466
3,206
1,260
1,551
724
825
2012
11,315
2,953
2,840
113
8,362
3,249
3,032
2,081
2013
13,742
3,554
4,097
-543
10,188
3,921
-155
6,423
2014
4,766
4,339
3,844
494
427
105
533
-212
1 Dollar
value of gross issuance (proceeds from initial and additional public offerings of shares) minus gross redemptions
of shares (share repurchases and fund liquidations). A positive number indicates that gross issuance exceeded gross
redemptions. A negative number indicates that gross redemptions exceeded gross issuance.
2 Data are not available for years prior to 2007.
Note: Components may not add to the total because of rounding.
CLOSED-END FUNDS
83
84
401
359
398
343
398
344
384
329
377
323
372
319
219
215
213
204
198
195
2012:Q4
2013:Q4
2014:Q1
2014:Q2
2014:Q3
2014:Q4
1 Structural
leverage affects the closed-end funds capital structure by increasing the funds portfolio assets through
borrowing and issuing debt and preferred stock.
2 Portfolio leverage results from particular types of portfolio investments, including certain types of derivatives, reverse
repurchase agreements, tender option bonds, and other investments or types of transactions. Data are only available
for reverse repurchase agreements and tender option bonds. Given data collection constraints, and the continuing
development of types of investments/transactions with a leverage characteristic (and the use of different definitions of
leverage), actual portfolio leverage may be materially different from what is reflected above.
Note: Components do not add to the total because funds may employ both structural and portfolio leverage.
CLOSED-END FUNDS
85
LEARN MORE
FAQs About
Closed-End
Funds and
Their Use of
Leverage.
Available at
www.ici.org/
pubs/faqs.
Structural leverage, the most common type, affects the closed-end funds
capital structure by increasing the funds portfolio assets. Types of closedend fund structural leverage include borrowing and issuing debt and
preferred shares. At the end of 2014, 319 funds had a total of $50.7billion in
structural leverage, with a little more than half (53percent) of those assets
from preferred shares (Figure4.6). Forty-sevenpercent of closed-end fund
structural leverage was other structural leverage. The average leverage
ratio* across those closed-end funds employing structural leverage was
26.0percent at year-end 2014. Among bond funds employing structural
leverage, the average leverage ratio was somewhat higher (28.2percent)
than that of equity funds (19.4percent) employing structural leverage.
FIGURE4.6
53%
Preferred shares 1
47%
Other structural
leverage 2
* The leverage ratio is the ratio of the amount of preferred shares and other structural leverage to the sum
of the amount of common assets, preferred shares, and other structural leverage.
86
10.7
10.5
9.9 10.2
10.4 10.2
9.8 10.2
2014:Q1
2014:Q2
2014:Q3
2014:Q4
8.6
6.3
2012:Q4
7.1
2013:Q4
Note: Portfolio leverage results from particular types of portfolio investments, including certain types of derivatives,
reverse repurchase agreements, tender option bonds, and other investments or types of transactions. Data are only
available for reverse repurchase agreements and tender option bonds. Given data collection constraints, and the
continuing development of types of investments/transactions with a leverage characteristic (and the use of different
definitions of leverage), actual portfolio leverage may be materially different from what is reflected above.
CLOSED-END FUNDS
87
92
68
89
Equity
85
Bond
51
Hybrid
44
Money market
66
Individual equities
72
Individual bonds
31
36
43
LEARN MORE
A Guide
to ClosedEnd Funds.
Available at
www.ici.org/
cef.
88
All U.S.
households
Households
owning
closed-end
funds
Households
owning
mutual
funds
Households
owning
individual
equities
51
51
51
53
Household income2
$50,000
$100,000
$85,000
$90,000
$75,500
$350,000
$200,000
$330,000
Median
Age of head of household1
Percentage of households
Household primary or co-decisionmaker for saving and investing
Married or living with a partner
58
69
73
72
10
32
53
49
52
60
69
77
72
28
33
23
29
IRA(s)
34
72
62
63
46
68
85
72
Widowed
Household owns
1 Age
CLOSED-END FUNDS
89
CHAPTER FIVE
70 basis points
Mutual fund investors, like investors in all financial products, pay for the services they receive. This
chapter provides an overview of mutual fund expenses and fees.
Trends in Mutual Fund Expenses...................................................................................................................... 92
Understanding the Decline in Fund Expense Ratios............................................................................... 94
Understanding Differences in the Expense Ratios of Mutual Funds................................................... 100
Mutual Fund Load Fees.................................................................................................................................... 104
Services and Expenses in 401(k) Plans......................................................................................................... 108
Mutual fund investors incur two primary types of expenses and fees: ongoing
expenses and sales loads. Ongoing expenses cover portfolio management,
fund administration, daily fund accounting and pricing, shareholder services
(such as call centers and websites), distribution charges (known as 12b-1fees),
and other operating costs. These expenses are included in a funds expense
ratiothe funds annual expenses expressed as apercentage of its assets.
Since expenses are paid from fund assets, investors pay these expenses
indirectly. Sales loads are paid at the time of share purchase (front-end
loads), when shares are redeemed (back-end loads), or over time
(level loads).
On an asset-weighted basis, average expense ratios* incurred by mutual fund
investors have fallen substantially (Figure5.1). In 2000, equity fund investors
incurred expense ratios of 99 basis points, on average, or 99 cents for every
$100 invested. By 2014, that average had fallen to 70 basis points, a decline
of 29percent. Hybrid and bond fund ratios also have declined. The average
hybrid fund expense ratio fell from 89 basis points in 2000 to 78 basis points
in 2014, a reduction of 12percent. In addition, the average bond fund expense
ratio fell from 76 basis points in 2000 to 57 basis points in 2014, a decline of
25percent.
* In this chapter, unless otherwise noted, average expenses are calculated on an asset-weighted basis.
An asset-weighted average gives more weight to funds with large amounts of assets. It reflects
where investors are actually putting their assets, and thus better reflects the actual expenses, fees,
or performance experienced by investors than does a simple average (weighting each fund or share
class equally). ICIs fee research uses asset-weighted averages to summarize the expenses and fees
that shareholders pay through mutual funds. In this context, asset-weighted averages are preferable
to simple averages, which would overstate the expenses and fees of funds in which investors hold few
dollars. ICI weights each funds expense ratio by its year-end assets.
Basis points simplifypercentages written in decimal form. A basis point equals one-hundredth of
1percent (0.01percent), so 100 basis points equals 1percentage point. When applied to $1.00, 1 basis
point equals $0.0001; 100 basis points equals one cent ($0.01).
92
FIGURE5.1
99
100
100
95
91
88
86
83
87
83
79
77
74
70
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Hybrid funds
89
89
89
90
85
81
78
77
77
84
82
80
79
80
78
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bond funds
76
75
74
75
72
68
67
64
61
64
63
62
61
61
57
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Note: Expense ratios are measured as asset-weighted averages. Data exclude mutual funds available as investment
choices in variable annuities and mutual funds that invest primarily in other mutual funds.
Sources: Investment Company Institute and Lipper
93
FIGURE5.2
Billions of dollars
100
95
90
1,972
1,865
Average expense
ratio 2
1,718
1,644
1,272
85
2,297 2,340
2,082
2,000
1,738
1,629
2,500
1,582
1,674
1,500
1,298
1,000
80
500
75
70
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1 Calculations
are based on a fixed sample of share classes. Data exclude mutual funds available as investment choices in
variable annuities and mutual funds that invest primarily in other mutual funds.
2 Expense ratios are measured as asset-weighted averages.
Sources: Investment Company Institute and Lipper
94
Mutual fund expenses also have fallen because of economies of scale and
competition. Investor demand for mutual fund services has increased
dramatically in recent years. From 1990 to 2014, the number of households
owning mutual funds more than doubledfrom 23.4 million to 53.2 million.
All else equal, this sharp increase in demand would tend to boost fund
expense ratios. Any such tendency, however, was mitigated by downward
pressure on expense ratiosfrom competition among existing fund sponsors,
new fund sponsors entering the industry, competition from products such
as exchange-traded funds (ETFs) (see chapter 3), and economies of scale
resulting from the growth in fund assets.
Finally, shareholders tend to invest in funds with below-average expense
ratios (Figure5.3). The simple average expense ratio of equity funds (the
average for all equity funds offered for sale) was 133 basis points in 2014.
The asset-weighted average expense ratio for equity funds (the average
shareholders actually paid) was far lowerjust 70 basis points.
FIGURE5.3
99
165
99
166
100
168
100
159
95
154
91
151
146
146
150
146
142
140
136
133
88
86
83
87
83
79
77
74
70
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Note: Data exclude mutual funds available as investment choices in variable annuities and mutual funds that invest
primarily in other mutual funds.
Sources: Investment Company Institute and Lipper
95
26
70
64
36
30
15
Actively managed
equity funds 1
Data exclude mutual funds available as investment choices in variable annuities and mutual funds that invest primarily in
other mutual funds.
2 Data include mutual funds that invest primarily in other mutual funds, but exclude mutual funds available as investment
choices in variable annuities. Ninety-seven percent of these funds invest primarily in other mutual funds.
Sources: Investment Company Institute and Lipper
1
96
Total Net Assets and Number of Index Mutual Funds Have Increased in Recent Years
Billions of dollars, 20002014
2,053
Total net assets of index bond funds and index hybrid funds
Total net assets of index equity funds
1,734 373
305
1,311
384
27
371
36
357
334
327
46
281
455
51
404
554
60
494
619
71
548
747
83
665
855
107
602
121
748
481
1,094 281
1,017
238
1,680
835 193
1,429
158
678
824
856
1,031
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Number of index funds
271 286 313 321
328
322
343
354
359
357
365
382
372
371
382
Note: Data exclude mutual funds that invest primarily in other mutual funds. Components may not add to the total
because of rounding.
* Unless otherwise noted, the discussion and figures in this section exclude exchange-traded funds (ETFs), which are examined
separately in chapter 3.
97
98
FIGURE5.6
106
100
80
78
86
63
60
40
20
0
27
21
Index bond funds
11
11
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Note: Expense ratios are measured as asset-weighted averages. Data exclude mutual funds available as investment
choices in variable annuities and mutual funds that invest primarily in other mutual funds.
Sources: Investment Company Institute and Lipper
In part, the downward trend in the average expense ratios of both index and actively managed
funds reflects investors tendency to buy lower-cost funds. Investor demand for index funds is
disproportionately concentrated in the very lowest-cost funds. In 2014, for example, 69percent
of index equity fund assets were held in funds with expense ratios that were among the lowest
10percent of all index equity funds. This phenomenon is not unique to index funds, however;
the proportion of assets in the lowest-cost actively managed funds is also high.
99
100
FIGURE5.7
Median
90th
percentile
Assetweighted
average
Simple
average
72
125
208
70
133
Growth
74
120
200
82
128
Sector
79
135
216
81
141
Value
73
118
196
80
125
Blend
45
108
189
46
112
World
88
139
220
86
146
Hybrid funds1
70
124
205
78
133
Bond funds1
48
86
165
57
98
Taxable
47
90
172
57
99
Municipal
50
80
157
56
93
10
21
13
12
49
94
161
57
99
44
156
11
70
10th
percentile
Equity funds1
Investment objective
Data exclude mutual funds available as investment choices in variable annuities and mutual funds that invest primarily
in other mutual funds.
2 Data include mutual funds that invest primarily in other mutual funds, but exclude mutual funds available as
investment choices in variable annuities. Ninety-seven percent of these funds invest primarily in other mutual funds.
Sources: Investment Company Institute and Lipper
1
101
12b-1 Fees
Since 1980, when the U.S. Securities and Exchange Commission adopted Rule 12b-1 under
the Investment Company Act of 1940, funds and their shareholders have had the flexibility to
compensate financial professionals and other financial intermediaries through asset-based
fees. These distribution fees, known as 12b-1 fees, enable investors to pay indirectly for some
or all of the services they receive from financial professionals (such as their broker) and other
financial intermediaries (such as retirement plan recordkeepers and discount brokerage firms).
Funds also use 12b-1 fees to a very limited extent to help defray advertising and marketing
costs.
102
Back-end load shares, often called Class B shares, typically do not have a front-end load.
Investors using back-end load shares pay for services provided by financial professionals
through a combination of an annual 12b-1 fee and a contingent deferred sales load (CDSL).
The CDSL is paid if fund shares are redeemed before a given number of years of ownership.
Back-end load shares usually convert after a specified number of years to a share class with a
lower 12b-1 fee (for example, Class A shares). The assets in back-end load shares have declined
substantially in recent years.
Level-load shares, which include Class C shares, generally do not have front-end loads.
Investors in this share class compensate financial advisers with an annual 12b-1 fee (typically
1percent) and a CDSL (also typically 1percent) that shareholders pay if they sell their shares
within a year of purchase.
103
104
FIGURE5.8
Front-End Sales Loads That Investors Pay Are Well Below the Maximum Front-End
Sales Loads That Funds Charge
Percentage of purchase amount, selected years
Equity
Hybrid
Bond
Equity
Hybrid
Bond
1990
5.0
5.0
4.6
3.9
3.8
3.5
1995
4.8
4.7
4.1
2.5
2.4
2.1
2000
5.2
5.1
4.2
1.4
1.4
1.1
2005
5.3
5.3
4.0
1.3
1.3
1.0
2010
5.4
5.2
3.9
1.0
1.0
0.8
2014
5.4
5.2
3.8
0.9
0.9
0.7
1 The
maximum front-end sales load is a simple average of the highest front-end load that funds may charge as set forth
in their prospectuses.
2 The simple average front-end sales load that investors actually paid is the total front-end sales loads that funds
collected divided by the total maximum loads that the funds could have collected based on their new sales that
year. This ratio is then multiplied by each funds maximum sales load. The resulting value is then averaged across all
funds.
Note: Data exclude mutual funds available as investment choices in variable annuities and mutual funds that invest
primarily in other mutual funds.
Sources: Investment Company Institute, Lipper, and Strategic Insight Simfund
105
In part because of the shift toward asset-based fees (either through the fund
or out-of-pocket), the market shares of front-end and back-end load share
classes have declined in recent years, while those in no-load share classes
have increased substantially. For example, from year-end 2005 to year-end
2014, front-end and back-end load share classes had net outflows totaling
$717 billion (Figure5.9); in addition, their share of long-term mutual fund
assets fell from 29percent to 16percent (Figure5.10).
FIGURE5.9
Nearly All Net New Cash Flow Was in No-Load Institutional Share Classes
Billions of dollars, 20052014
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$192
$227
$224
-$225
$389
$243
$28
$198
$160
$96
12
18
-2
-156
-62
-129
-77
-63
-175
Front-end1
41
44
18
-105
-56
-100
-67
-56
-159
Back-end2
-47
-47
-42
-39
-24
-27
-23
-16
-11
-9
Level3
18
22
25
-13
31
21
-6
-2
-4
Other4
(*)
(*)
(*)
(*)
(*)
(*)
(*)
-1
(*)
-3
Unclassified
-1
-1
-2
(*)
(*)
(*)
(*)
(*)
(*)
No-load5
139
156
165
-73
324
265
170
300
265
341
Retail
65
71
59
-103
139
55
-46
21
33
113
Institutional
73
84
106
30
185
210
215
279
232
228
Variable annuities
18
24
25
-26
29
-21
-28
-54
-66
R share classes6
24
29
37
30
27
33
11
-4
All long-term
mutual funds
Load
Front-end load > 1percent. Primarily includes Class A shares; includes sales where front-end loads are waived.
load = 0percent and contingent deferred sales load (CDSL) > 2percent. Primarily includes Class B shares.
3 Front-end load 1percent, CDSL 2percent, and 12b-1 fee > 0.25percent. Primarily includes Class C shares; excludes
institutional share classes.
4 All other load share classes not classified as front-end load, back-end load, or level load.
5 Front-end load = 0percent, CDSL = 0percent, and 12b-1 fee 0.25percent.
6 R shares include assets in any share class that ICI designates as a retirement share class. These share classes
are sold predominantly to employer-sponsored retirement plans. However, other share classesincluding retail and
institutional share classesalso contain investments made through 401(k) plans or IRAs.
(*) = inflow or outflow of less than $0.5 billion
Note: Components may not add to the totals because of rounding. Data exclude mutual funds that invest primarily in
other mutual funds.
Sources: Investment Company Institute and Lipper
1
2 Front-end
106
FIGURE5.10
Total Net Assets of Long-Term Mutual Funds Are Concentrated in No-Load Share
Classes
Billions of dollars, 20052014
2005 2006
All long-term
mutual funds
Load
Front-end1
2007
2008 2009
2010
2011
2012
2013
2014
$6,865 $8,060 $8,914 $5,771 $7,797 $9,029 $8,940 $10,359 $12,316 $13,127
2,313 2,630 2,795
2,176
2,362
2,658
2,634
1,751
1,893
2,148
2,116
Back-end2
271
241
204
102
98
78
50
39
32
24
Level3
287
340
379
237
328
381
367
417
459
480
Other4
17
15
10
11
10
11
13
Unclassified
No-load5
5,224
6,262
7,594
8,366
Retail
2,991
3,469
4,144
4,625
Institutional
2,233
2,793
3,450
3,741
1,250
1,396
1,614
1,649
290
339
451
478
Variable annuities
R share classes6
85
132
186
140
226
296
Front-end load > 1percent. Primarily includes Class A shares; includes sales where front-end loads are waived.
load = 0percent and contingent deferred sales load (CDSL) > 2percent. Primarily includes Class B shares.
3 Front-end load 1percent, CDSL 2percent, and 12b-1 fee > 0.25percent. Primarily includes Class C shares; excludes
institutional share classes.
4 All other load share classes not classified as front-end load, back-end load, or level load.
5 Front-end load = 0percent, CDSL = 0percent, and 12b-1 fee 0.25percent.
6 R shares include assets in any share class that ICI designates as a retirement share class. These share classes
are sold predominantly to employer-sponsored retirement plans. However, other share classesincluding retail and
institutional share classesalso contain investments made through 401(k) plans or IRAs.
Note: Components may not add to the totals because of rounding. Data exclude mutual funds that invest primarily in
other mutual funds.
Sources: Investment Company Institute and Lipper
1
2 Front-end
By contrast, no-load share classes have seen net inflows and rising assets
over the past 10 years. No-load share classes have accumulated the bulk
of the inflows to long-term funds in the past decade. In 2014, no-load
share classes accounted for 64percent of long-term fund assets, up from
50percent in 2005.
107
Some of the shift toward no-load share classes can be attributed to do-ityourself investors. However, a larger factor is the growth of sales through
DC plans as well as sales of no-load share classes through sales channels
that compensate financial professionals with asset-based fees outside of
funds (for example, mutual fund supermarkets, discount brokers, fee-based
advisers, full-service brokerage platforms).
Employers are confronted with two competing economic pressures: the need
to attract and retain quality workers with competitive compensation packages
and the need to keep their products and services competitively priced. In
deciding whether to offer 401(k) plans to their workers, employers must
decide if the benefits of offering a plan (in attracting and retaining quality
workers) outweigh the costs of providing the plan and plan services. These
costs are both the contributions the employer makes to an employees 401(k)
account and the costs associated with setting up and administering the 401(k)
plan on an ongoing basis.
To provide and maintain 401(k) plans, employers are required to obtain a
variety of administrative, participant-focused, regulatory, and compliance
services. Employers offering 401(k) plans typically hire service providers to
operate these plans, and these providers charge fees for their services.
108
As with any employee benefit, the employer generally determines how the
costs of providing the benefit will be shared between the employer and
employee. 401(k) plan fees can be paid directly by the plan sponsor (the
employer), directly by the plan participant (the employee), indirectly by the
participant through fees or other reductions in returns paid to the investment
provider, or by some combination of these methods (Figure5.11).
FIGURE5.11
Recordkeeper/
Retirement service
provider
Employer/Plan
Recordkeeping and administration;
plan service and consulting;
legal, compliance, and regulatory
Recordkeeping/
Administrative
payment
(percentage of
assets)
Participants
Expense ratio (percentage of assets)
Investment
provider(s)
Note: In selecting the service provider(s) and deciding the cost-sharing for the 401(k) plan, the employer/plan sponsor will
determine which combinations of these fee arrangements will be used in the plan.
Source: ICI Research Perspective, The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2013
109
LEARN MORE
Inside the
Structure
of Defined
Contribution/
401(k) Plan
Fees, 2013.
Available at
www.ici.org/
pubs/research/
reports.
One key driver of 401(k) plan fees is plan size. A Deloitte/ICI study of 361 DC
plans in 2013 created and analyzed a comprehensive plan fee measure, the
all-in fee. The study found that plans with more participants and larger
average account balances tended to have lower all-in fees than plans with
fewer participants and smaller average account balances. This observed
effect likely results in part from fixed costs required to start up and run
the plan, much of which are driven by legal and regulatory requirements. It
appears that economies of scale are gained as a plan grows because these
fixed costs can be spread across more participants, a larger asset base, or
both. Plans with a higherpercentage of their assets in equity investments
tended to have higher all-in fees, reflecting the higher expense ratios
associated with equity investing compared with fixed-income investing. The
study also examined types of service providers, automatic enrollment, the
number of investment options, and variables relating to plans relationships
with their service providersbut found little impact on fees.
More than 60percent of 401(k) assets at year-end 2014 were invested in
mutual funds. Participants in 401(k) plans holding mutual funds tend to
invest in lower-cost funds and funds with below-average portfolio turnover.
Both characteristics help to keep down the costs of investing in mutual funds
through 401(k) plans. For example, at year-end 2013, 38percent of 401(k)
equity mutual fund assets were in funds that had total annual expense
ratios of less than 50 basis points, and another 47percent had expense
ratios between 50 basis points and 100 basis points (Figure5.12). On an
asset-weighted basis, the average total expense ratio incurred on 401(k)
participants holdings of equity mutual funds through their 401(k) plans was
58 basis points in 2013, less than the asset-weighted average total expense
ratio of 74 basis points for equity mutual funds industrywide. Similarly, equity
mutual funds held in 401(k) accounts tend to have lower turnover in their
portfolios. The asset-weighted average turnover rate of equity funds held
in 401(k) accounts was 35percent in 2013, less than the industrywide assetweighted average of 41percent.
110
FIGURE5.12
13
1
<50
50 to <100
100 to <150
150
111
CHAPTER SIX
Characteristics of
Mutual Fund Owners
Thepercentage of U.S. households owning mutual funds grew
eightfold in the 1980s and 1990s, and has held steady for the
past 15 years, averaging about 45percent since 2000. In mid2014, 43percent of all U.S. households owned mutual funds. The
estimated 90 million people who owned mutual funds in mid-2014
belong to all age and income groups, have a variety of financial
goals, and buy and sell mutual funds through four principal sources:
investment professionals, employer-sponsored retirement plans,
fund companies directly, and fund supermarkets.
74 percent
saving primarily
for retirement
This chapter takes an in-depth look at the characteristics of U.S. mutual fund owners and examines how
they buy fund shares.
Individual and Household Ownership of Mutual Funds.............................................................................. 114
Mutual Fund Ownership by Age and Income......................................................................................... 116
Savings Goals of Mutual Fund Investors................................................................................................ 119
Where Investors Own Mutual Funds.............................................................................................................. 120
Sources of Mutual Fund Purchases......................................................................................................... 122
Shareholder Sentiment, Willingness to Take Investment Risk, and Confidence..................................... 125
Shareholders Use of the Internet.................................................................................................................. 129
23.4
48.6
50.3
53.2
52.9
53.8
56.7
53.2
2000
2005
2010
2011
2012
2013
2014
45.3
44.1
44.4
46.3
43.3
28.4
12.8
4.6
1980
1985
1990
1995
14.7
25.1
28.7
45.7
44.4
Sources: Investment Company Institute and U.S. Census Bureau. See ICI Research Perspective, Ownership of Mutual
Funds, Shareholder Sentiment, and Use of the Internet, 2014.
114
FIGURE6.2
115
FIGURE6.3
49
53
50
34
34
Younger than 35
35 to 44
45 to 54
55 to 64
65 or older
116
Not only were Baby Boomers the largest shareholder group in mid-2014, they
also held the largestpercentage of households mutual fund assets, at 51percent
(Figure6.4). Households headed by members of Generation X (31percent), the
Silent and GI Generations (13percent), and the Millennial Generation (5percent)
held the rest.
FIGURE6.4
The Baby Boom Generation Is the Largest Shareholder Group and Holds the Most
Mutual Fund Assets
Percentage of mutual fundowning households and mutual fund assets by generation, mid-2014
15
5
31
31
42
51
12
13
Note: Generation is based on the age of the sole or co-decisionmaker for household saving and investing.
Source: ICI Research Perspective, Characteristics of Mutual Fund Investors, 2014
117
Households with higher annual incomes are more likely to own mutual
funds than those with lower annual incomes. In mid-2014, 67percent of U.S.
households with annual income of $50,000 or more owned mutual funds,
compared with 18percent of households with annual income of less than
$50,000 (Figure6.5). In fact, lower-income households tend to have less
savings than higher-income households. The typical household with less than
$50,000 in annual income had only $12,000 in savings and investments,
while the typical household with annual income of $50,000 or more held
$190,000 in savings and investments.
FIGURE6.5
Household income
77
$100,000 or more
67
$75,000 to $99,999
52
$50,000 to $74,999
36
$35,000 to $49,999
21
$25,000 to $34,999
Less than $25,000
67%
$50,000 or more
18%
Less than $50,000
118
$200,000 or more
$100,000 to $199,999
$75,000 to $99,999
$50,000 to $74,999
$35,000 to $49,999
$25,000 to $34,999
Less than $25,000
12
18
9
31
19
14
10
21
24
11
5
4
Households owning
mutual funds
119
120
FIGURE6.7
1990 to
1994
1995 to
1999
2000 to
2004
2005 or
later
Memo:
all mutual
fundowning
households
57
62
69
74
68
64
Outside employer-sponsored
retirement plan
43
38
31
26
32
36
Note: Employer-sponsored retirement plans include DC plans (such as 401(k), 403(b), or 457 plans) and employersponsored IRAs (SEP IRAs, SAR-SEP IRAs, and SIMPLE IRAs).
Source: ICI Research Perspective, Characteristics of Mutual Fund Investors, 2014
121
82Percent of Mutual FundOwning Households Held Shares Inside EmployerSponsored Retirement Plans
Mid-2014
40%
Investment
professionals
only 2
40%
Investment professionals 2
and fund companies, fund
supermarkets, or
discount brokers
13%
Fund companies, fund
supermarkets, or discount
brokers only
7%
Source unknown
1 Employer-sponsored
retirement plans include DC plans (such as 401(k), 403(b), or 457 plans) and employer-sponsored
IRAs (SEP IRAs, SAR-SEP IRAs, and SIMPLE IRAs).
2 Investment professionals include registered investment advisers, full-service brokers, independent financial planners,
bank and savings institution representatives, insurance agents, and accountants.
Source: ICI Research Perspective, Characteristics of Mutual Fund Investors, 2014
122
Inside employer-sponsored
retirement plans1
15%
43%
8%
Investment professionals2
16%
7%
5%
2%
123
At year-end 2014, mutual funds held in DC plans and IRAs accounted for
$7.3trillion, or 29percent of, the $24.7 trillion U.S. retirement market. The
$7.3 trillion made up 46percent of total mutual fund assets at year-end 2014.
DC plans and IRAs held 53 percent of total assets in long-term mutual funds,
but a much smaller share of total assets in money market funds (13percent).
Similarly, mutual funds held in DC plans and IRAs accounted for 55percent of
household long-term mutual funds but only 22percent of household money
market funds (Figure6.10).
FIGURE6.10
12,496
4,423
1,168
3,325
55%
3,580
Households long-term
mutual fund assets
1,677
22 1,291
143 221
22%
Households money
market fund assets
1 Mutual
funds held as investments in 529 plans and Coverdell ESAs are counted in this category.
include traditional IRAs, Roth IRAs, and employer-sponsored IRAs (SEP IRAs, SAR-SEP IRAs, and SIMPLE IRAs).
3 DC plans include 401(k) plans, 403(b) plans, 457 plans, Keoghs, and other DC plans without 401(k) features.
2 IRAs
124
LEARN MORE
Profile of
Mutual Fund
Shareholders,
2014.
Available at
www.ici.org/
pubs/research/
reports.
Each year, ICI surveys U.S. households about a variety of topics, including
shareholder sentiment. In mid-2014, 68percent of mutual fundowning
households familiar with mutual fund companies had very or somewhat
favorable impressions of fund companies, the same as in 2013 (Figure6.11).
The share of mutual fundowning households with very favorable
impressions of fund companies, meanwhile, increased from 13percent to
17percent.
FIGURE6.11
Very favorable
Somewhat favorable
Somewhat unfavorable
Very unfavorable
No opinion
57
1 4
16
2001
15
16
22
79
55
10
18
2003
71
59
2 7
17
2005
74
57
8
14
2007
77
57
10
12
10
16
20
73 54
16
15
16
2008
2009
64
55
14
13
67
55
17
68
51
68
17
21
22
2010
2013
2014
Source: ICI Research Perspective, Ownership of Mutual Funds, Shareholder Sentiment, and Use of the Internet, 2014
125
Households Willingness to Take Investment Risk Tends to Move with the Stock
Market
Percentage of U.S. households willing to take above-average or substantial investment risk and S&P
500, 19882014
ICI measure of willingness to take risk (right scale)
SCF measure of willingness to take risk (right scale)
Index level
Percent
24
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
250
20
18
16
14
12
10
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
22
Note: The S&P 500 is an index of 500 stocks chosen for market size, liquidity, and industry group representation.
Sources: ICI Annual Mutual Fund Shareholder Tracking Survey, Federal Reserve Board Survey of Consumer Finances (SCF),
and Standard & Poors
Households owning mutual funds are far more willing to take investment
risk than other households. In mid-2014, 31percent of households owning
mutual funds were willing to take above-average or substantial investment
risk, more than twice the 13percent of households not owning mutual funds
(Figure6.13).
126
FIGURE6.13
23
4
15
19
4
15
19
4
15
19
5
14
19
5
16
21
6
15
37
37
38
35
35
36
35
11
10
10
10
10
32
40
2008
33
44
2009
33
43
2010
36
46
2011
36
46
33
43
2013
2012
35
21
44
2014
5
36
25
5
30
49
50
7
7 14
2008
10
11
25
4
30
48
49
21
2009
11
10
25
29
21
2010
10
13
5
23
4
28
48
49
23
2011
11
12
26
6
30
23
2012
12
10
25
31
49
22
2013
10
10
20
2014
11
4
7
11
4
7
11
4
6
10
6
6
12
5
6
11
6
7
26
27
27
25
23
26
24
11
10
55
2008
63
51
2009
62
53
2010
62
55
2011
65
56
2012
65
54
2013
63
55
13
63
2014
Source: ICI Research Perspective, Ownership of Mutual Funds, Shareholder Sentiment, and Use of the Internet, 2014
127
Very confident
Somewhat confident
86
86
84
85
29
32
31
57
54
2005
2006
79
82
80
80
84
26
72
17
24
21
24
21
26
53
59
55
55
61
56
59
58
2007
2008
2009
2010
2011
2012
2013
2014
Note: This question was not included in the survey prior to 2005. The question has four choices; the other two possible
responses are not very confident and not at all confident.
Source: ICI Research Perspective, Ownership of Mutual Funds, Shareholder Sentiment, and Use of the Internet, 2014
128
Mutual fundowning
households
Households with
DC plans1
86
96
96
35 to 49
88
95
95
50 to 64
81
95
93
65 or older
60
86
84
63
84
84
85
95
94
92
97
97
65
84
82
$50,000 to $99,999
90
94
95
$100,000 to $149,999
95
98
98
$150,000 or more
94
98
98
Total
79
94
93
Education level
Household income3
2 Age
129
CHAPTER SEVEN
Retirement and
Education Savings
National policies that have created or enhanced tax-advantaged
savings accounts have proven integral to helping Americans prepare
for retirement and other long-term savings goals. Because many
Americans use mutual funds in tax-advantaged accounts to reach
these goals, ICI studies the U.S. retirement market; the investors who
use IRAs, 401(k) plans, 529 plans, and other tax-advantaged savings
vehicles; and the role of funds in the retirement and education
savings markets.
58 percent
of assets at
year-end 2014
This chapter analyzes the U.S. retirement market; describes the investors who use IRAs, 401(k) plans, 529
plans, and other tax-advantaged savings vehicles; and explores the role of mutual funds in U.S.
households efforts to save for retirement and education.
The U.S. Retirement System........................................................................................................................132
Retirement Resource Pyramid............................................................................................................132
Snapshot of U.S. Retirement Market Assets......................................................................................137
Defined Contribution Retirement Plans.....................................................................................................141
401(k) Plan Design: Employer Contributions and Investment Lineup..............................................142
401(k) Participants: Asset Allocations, Account Balances, and Loan Activity................................145
Individual Retirement Accounts................................................................................................................. 150
IRA Investors.........................................................................................................................................152
IRA Portfolios........................................................................................................................................156
Distributions from IRAs........................................................................................................................158
The Role of Mutual Funds in Retirement Savings.....................................................................................160
Types of Mutual Funds Used by Retirement Plan Investors...............................................................162
The Role of Mutual Funds in Education Savings.......................................................................................165
Social Security
homeownership
employer-sponsored retirement plans (private-sector and government
employer plans, including both defined benefit [DB] and defined
contribution [DC] plans)
132
FIGURE7.1
Other assets
IRAs
(including rollovers)
Employer-sponsored retirement plans
Homeownership
Social Security
Source: Investment Company Institute, The Success of the U.S. Retirement System
While the importance of each layer differs by household, together they have
enabled recent generations of retirees, on average, to maintain their standard
of living in retirement.
The construction of each households pyramid varies with age and income.
Younger households are more likely to save primarily for reasons other than
retirement, such as a home purchase, family needs, or education (Figure7.2).
By contrast, older households are more likely to save primarily for retirement,
as many already have reached their other savings goals. The tendency of
younger workers to focus less on saving for retirement is consistent with
economic models of life-cycle consumption predicting that most workers
delay saving for retirement until later in their careers. Lower-income
households also focus less on saving for retirement, reflecting the fact that
Social Security benefits replace a higher share of pre-retirement earnings for
workers with lower lifetime earnings.
LEARN MORE
The Success
of the U.S.
Retirement
System.
Available at
www.ici.org/
pubs/white_
papers.
133
FIGURE7.2
43
38
32
33
30
23
22
15
9
13
Retirement
Social Security, the base of the U.S. retirement resource pyramid, is the
largest component of retiree income and the primary source of income
for lower-income retirees. Social Security benefits are funded through a
payroll tax equal to 12.4percent of earnings of covered workers (6.2percent
paid by employees and 6.2percent paid by employers) up to a maximum
taxable earnings amount ($117,000 in 2014). The benefit formula is highly
progressive, with benefits representing a much higherpercentage of earnings
for workers with lower lifetime earnings. By design, Social Security is the
primary means of support for retirees with low lifetime earnings and a
substantial source of income for all retired workers. For individuals born in the
1950s, the Congressional Budget Office (CBO) projects that mean first-year
Social Security benefits will replace 85percent of average inflation-indexed
lifetime earnings for the bottom 20percent of retired workers ranked by
lifetime household earnings (Figure7.3). The mean replacement rate drops
to 64percent for the second quintile of households, and then declines more
slowly as lifetime household earnings increase. For even the top 20percent
of lifetime earners, Social Security benefits are projected to replace a
considerable portion (34percent) of earnings.
134
FIGURE7.3
55
47
34
Lowest
Second
Middle
Fourth
Highest
LEARN MORE
A Look at
Private-Sector
Retirement
Plan Income
After ERISA,
2013.
Available at
www.ici.org/
perspective.
135
FIGURE7.4
96
81
42
53
42
42
34
45
14
10
Lowest
Second
Middle
8
Fourth
Less than
$33,480
$33,480 to
$54,785
$54,785 to
$86,235
$86,235 to
$140,005
5
15
98
20
44
30
1
Highest
10
All
$140,005
or more
136
LEARN MORE
The U.S.
Retirement
Market, Fourth
Quarter 2014.
Available at
www.ici.org/
research/stats/
retirement.
FIGURE7.5
23.3
18.2
18.0
14.6
11.6
7.0
3.9
1.7
1.3
1995
6.0
3.0
10.5
8.7
7.4
5.4
2.6
3.7
14.2
8.4
7.0
4.6
2.6
2.5
3.4
4.7
2000
2002
2005
2007
3.6
4.8
20.1
10.0
24.7
10.4
8.9
5.3
6.3
6.8
5.0
5.9 e
7.0 e
7.4 e
3.7
2008
2010
2012
2013
2014
Other plans include private-sector DB plans; federal, state, and local DB plans; and all fixed and variable annuity reserves
at life insurance companies less annuities held by IRAs, 403(b) plans, 457 plans, and private pension funds. Federal
pension plans include U.S. Treasury security holdings of the civil service retirement and disability fund, the military
retirement fund, the judicial retirement funds, the Railroad Retirement Board, and the foreign service retirement and
disability fund. These plans also include securities held in the National Railroad Retirement Investment Trust.
2 DC plans include 401(k) plans, 403(b) plans, 457 plans, the Federal Employees Retirement System (FERS) Thrift Savings
Plan (TSP), Keoghs, and other private-sector DC plans without 401(k) features.
3 IRAs include traditional IRAs, Roth IRAs, and employer-sponsored IRAs (SEP IRAs, SAR-SEP IRAs, and SIMPLE IRAs).
e Data are estimated.
Note: Components may not add to the total because of rounding.
Sources: Investment Company Institute, Federal Reserve Board, Department of Labor, National Association of
Government Defined Contribution Administrators, American Council of Life Insurers, Internal Revenue Service Statistics
of Income Division, and Government Accountability Office. See Investment Company Institute, The U.S. Retirement
Market, Fourth Quarter 2014.
1
137
7.4e
6.8
3.8
3.2
1.4
1.8
2.0
1.3
0.02
IRAs
DC plans
Private-sector
DB plans
Federal DB
plans
e Data
are estimated.
Sources: Investment Company Institute, Federal Reserve Board, National Association of Government Defined
Contribution Administrators, American Council of Life Insurers, Internal Revenue Service Statistics of Income Division,
and Government Accountability Office. See Investment Company Institute, The U.S. Retirement Market, Fourth Quarter
2014.
138
37%
Did not have IRA or
employer-sponsored
retirement plan
6%
Had IRA only1
28%
Had IRA and
employer-sponsored
retirement plan1, 2
29%
Had employer-sponsored
retirement plan only2
Total number of U.S. households: 123.0 million
1 IRAs
include traditional IRAs, Roth IRAs, and employer-sponsored IRAs (SEP IRAs, SAR-SEP IRAs, and SIMPLE IRAs).
retirement plans include DC and DB retirement plans.
Sources: Investment Company Institute and U.S. Census Bureau. See ICI Research Perspective, The Role of IRAs in U.S.
Households Saving for Retirement, 2014.
2 Employer-sponsored
139
Ownership of IRA and DC plan assets has tended to increase with each
successive generation of workers, although recent data suggest that
ownership rates may have stabilized. For example, in 1983, when they were
44 to 53 years of age, 44percent of households born in the 1930s owned
IRAs or DC plan accounts (Figure7.8). By comparison, households born a
decade later had a 56percent ownership rate when they were 44 to 53 years
old in 1993; and, among households born in the 1950s, 62percent had IRAs
or DC plan accounts when they were 44 to 53 years old, in 2003. Earlier in
their careers, the 1960s birth cohort appeared to be continuing the trend of
increased ownership. However, in 2013, when they were 44 to 53 years old,
57percent of households born in the 1960s owned IRAs or DC plan accounts.
Recent experience could indicate that long-term growth in ownership has
stabilized, or it could reflect a temporary pause in the long-term trend caused
by the weak economy.
FIGURE7.8
1989
1992
1995
1998
2001
2004
2007
2010
2013
100
90
80
70
60
50
40
30
20
10
0
25
30
35
40
45
50
55
60
65
70
75
80
140
1.7
0.1 0.5 0.3
0.9
1995
3.0
0.5
0.2
0.5
1.7
2.6
0.4
0.2
0.4
1.6
2000
2002
3.7
0.4
0.3
0.6
4.6
0.5
0.4
0.7
2.4
3.0
2005
2007
3.6
0.4
0.3
0.6
2.2
2008
4.8
0.4
0.5
0.8
3.1
2010
5.3
0.4
0.5
0.8
3.5
2012
6.3
0.5
0.6
0.9
4.2
2013
6.8
0.6
0.7
1.0
4.6
2014
* Other private-sector DC plans include Keoghs and other private-sector DC plans (profit-sharing, stock bonus, and money
purchase) without 401(k) features.
Note: Components may not add to the total because of rounding.
Sources: Investment Company Institute, Federal Reserve Board, Department of Labor, National Association of
Government Defined Contribution Administrators, and American Council of Life Insurers. See Investment Company
Institute, The U.S. Retirement Market, Fourth Quarter 2014.
RETIREMENT AND EDUCATION SAVINGS
141
FIGURE7.10
17%
No employer
contribution
37%
Other employer
contribution4
40%
Simple match
formula1
4%
Tiered match
formula2
3%
Maximum dollar
match3
142
41
15
22
15
11
12
9
9
1
3% or less
17
8
1
4%
5%
6%
Employer matches up to this percentage
6
1
1 2
7% or more
Note: Plans with no employer contribution, maximum dollar contributions, tiered match formulas, or only a nonmatching
contribution were excluded. The sample is the 40percent of plans with simple match formulas. Audited DC/401(k) filings
generally include plans with 100 or more participants. Plans with fewer than four investment options or more than 100
investment options are excluded from this analysis. Components may not add to the totals and do not add to 100percent
overall because minor categories have been omitted.
Source: BrightScope Defined Contribution Plan Database. See BrightScope and Investment Company Institute,
The BrightScope/ICI Defined Contribution Plan Profile: A Close Look at 401(k) Plans.
143
Investment Lineup
In addition to choosing how contributions to the 401(k) plan will be structured,
employers also select the number and types of investment options in the plan.
In 2012, domestic equity funds, international equity funds, and domestic bond
funds were widely available, offered in 99percent, 98percent, and 98percent
of plans, respectively (Figure7.12). A little more than half of 401(k) plans
offered money funds on average and almost two-thirds of 401(k) plans offered
guaranteed investment contracts (GICs).
FIGURE7.12
99
Domestic
Equity funds
Balanced funds
98
International
Target
date funds1
70
Nontarget
date balanced
funds
66
Domestic
Bond funds
International
Money
funds
Other funds
98
22
54
64
GICs
Other2
60
A target date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it
approaches and passes the target date of the fund, which is usually included in the funds name.
2 Other includes commodity funds, real estate funds, and individual stocks (including company stock) and bonds.
Note: The sample is 35,472 plans with $2.9 trillion in assets. Audited DC/401(k) filings generally include plans with 100
or more participants. Funds include mutual funds, collective investment trusts, separate accounts, and other pooled
investment products. Plans with fewer than four investment options or more than 100 investment options are excluded
from this analysis.
Source: BrightScope Defined Contribution Plan Database. See BrightScope and Investment Company Institute,
The BrightScope/ICI Defined Contribution Plan Profile: A Close Look at 401(k) Plans.
1
144
LEARN MORE
401(k)
Plan Asset
Allocation,
Account
Balances, and
Loan Activity
in 2013.
Available at
www.ici.org/
perspective.
145
FIGURE7.13
31.9
Equity funds
37.3
35.0
13.0
12.4
Nontarget date
balanced funds
7.1
5.1
Bond funds
Money funds
11.6
1.8
6.2
6.4
Other
5.7
1.9
11.7
5.4
7.1
* A target date fund typically rebalances its portfolio to become less focused on growth and more focused on income as it
approaches and passes the target date of the fund, which is usually included in the funds name.
Note: Funds include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment
product primarily invested in the security indicated.Percentages are dollar-weighted averages. Components do not add
to 100percent because of rounding.
Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. See ICI Research
Perspective, 401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2013.
146
22
65
18
26
19
4 1
10
Participants in
their twenties
13
6
15
Participants in
their sixties
Note: Equities include equity funds, company stock, and the equity portion of balanced funds. Funds include mutual
funds, bank collective trusts, life insurance separate accounts, and any pooled investment product invested primarily in
the security indicated. Components do not add to 100percent because of rounding.
Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. See ICI Research
Perspective, 401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2013.
147
2006
2013
71
57
62
66
41
19
15
5
Plans offering
target date funds
Participants offered
target date funds
Participants holding
target date funds
Note: Funds include mutual funds, bank collective trusts, life insurance separate accounts, and any pooled investment
product.
Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. See ICI Research
Perspective, 401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2013.
148
2013, 41percent of 401(k) participants held at least some plan assets in target
date funds. In addition, because not all participants with assets in target date
funds allocated 100percent of their holdings to these funds, and because
participants with assets in these funds were more likely to be younger or
recently hired and have lower account balances, the share of 401(k) assets
invested in target date funds was lower than the share of participants
invested in these funds.
Account Balances
Account balances tended to be higher the longer 401(k) plan participants
had been working for their current employers and the older the participant.
Participants in their sixties with more than 30 years of tenure at their current
employer had an average 401(k) account balance of $248,397 at year-end
2013 (Figure7.16). Participants in their forties with five to 10 years of tenure
at their current employer had an average 401(k) balance of $62,087. The
median 401(k) plan participant was 46 years old at year-end 2013, and the
median job tenure was eight years.
FIGURE7.16
401(k) Balances Tend to Increase with Participant Age and Job Tenure
Average 401(k) account balance by participant age and tenure, 2013
$300,000
50s
60s
$250,000
$200,000
40s
$150,000
$100,000
30s
$50,000
$0
20s
0 to 2
>2 to 5
>5 to 10
>10 to 20
>20 to 30
>30
149
Plan Loans
Most 401(k) participants do not borrow from their plans, although the
majority have access to loans. At year-end 2013, 21percent of participants
eligible for loans had loans outstanding, the same rate as over the previous
four years. However, not all participants have access to 401(k) plan loans
factoring in all 401(k) participants with and without loan access in the EBRI/
ICI 401(k) database, only 18percent had loans outstanding at year-end
2013. The average unpaid loan balances among participants with loans
represented about 12percent of their 401(k) account balances (net of the
unpaid loan balances). In aggregate, U.S. Department of Labor data indicate
that outstanding loan amounts were less than 2percent of 401(k) plan assets
in 2012.
150
Traditional IRAs, the first type of IRA, were created in 1974 under the
Employee Retirement Income Security Act (ERISA). IRAs provide all workers
with a contributory retirement savings vehicle and, through rollovers, give
workers leaving jobs a means to preserve the tax benefits and growth
opportunities that employer-sponsored retirement plans provide. Roth IRAs,
first available in 1998, were created to provide a contributory retirement
savings vehicle on an after-tax basis with qualified withdrawals distributed
tax-free. In addition, policymakers have added employer-sponsored IRAs
(SEP IRAs, SAR-SEP IRAs, and SIMPLE IRAs) to encourage small employers to
provide retirement plans by simplifying the rules applicable to tax-qualified
plans.
Total IRA assets, $7.4 trillion at year-end 2014, accounted for 30percent
of U.S. retirement assets. Mutual funds accounted for $3.5 trillion of IRA
assets at year-end 2014, up from $3.3 trillion at year-end 2013 (Figure7.17).
Assets managed by mutual funds were the largest component of IRA assets,
followed by other assets, which include ETFs, individual stocks and bonds,
and other securities held through brokerage accounts ($3.0 trillion at
year-end 2014). The mutual fund industrys share of the IRA market was
48percent at year-end 2014, the same as at year-end 2013.
FIGURE7.17
IRA Assets
Trillions of dollars; year-end, selected years
Other assets 1
Life insurance companies2
Bank and thrift deposits 3
Mutual funds
7.0 e
5.9 e
5.0
4.7
1.3
0.1 0.5
0.3
0.5
1995
2.6
2.5
0.9
0.2
0.3
0.9
0.3
0.3
1.3
1.1
2000
2002
7.4 e
1.6
3.7
1.1
0.3
0.3
0.3
0.3
1.3
1.8
2005
2007
3.0 e
2.3 e
3.4
2.5
2.8 e
0.3
0.4
1.7
2008
1.8
0.3
0.5
2.4
2010
0.3
0.5
2.8
2012
0.3
0.5
0.4
0.5
3.3
3.5
2013
2014
1 Other
assets include individual stocks, individual bonds, closed-end funds, ETFs, and other assets held through
brokerage or trust accounts.
2 Life insurance company IRA assets are annuities held by IRAs, excluding variable annuity mutual fund IRA assets, which
are included in mutual funds.
3 Bank and thrift deposits include Keogh deposits.
e Data are estimated.
Note: Components may not add to the total because of rounding.
Sources: Investment Company Institute, Federal Reserve Board, American Council of Life Insurers, Internal Revenue
Service Statistics of Income Division, and Government Accountability Office. See Investment Company Institute, The
U.S. Retirement Market, Fourth Quarter 2014.
151
IRA Investors
More than three out of 10 U.S. households, or nearly 42 million, owned at
least one type of IRA as of mid-2014 (Figure7.18). Traditional IRAsthose
introduced under ERISAwere the most common type, owned by 31 million
U.S. households. Roth IRAs, first available in 1998 under the Taxpayer Relief
Act of 1997, were owned by 19 million U.S. households. Seven million U.S.
households owned employer-sponsored IRAs (SEP IRAs, SAR-SEP IRAs, or
SIMPLE IRAs).
Although most U.S. households are eligible to make contributions to IRAs, few
do so. Indeed, only 12percent of U.S. households contributed to any type of
IRA in tax year 2013. In addition, very few eligible households made catch-up
contributions to traditional or Roth IRAs.
FIGURE7.18
Year created
Traditional
IRA
SEP IRA
1974
(Employee Retirement
Income Security Act)
Assets in IRAs
(billions of
dollars, yearend 2014)
31.1 million
25.3%
$6,421e
7.4 million
6.0%
$472e
19.2 million
15.6%
$550e
41.5 million
33.7%
$7,443e
1978
(Revenue Act)
SAR-SEP IRA
1986
(Tax Reform Act)
SIMPLE IRA
1996
(Small Business Job
Protection Act)
Roth IRA
1997
(Taxpayer Relief Act)
Any IRA
e Data
are estimated.
Note: Households may own more than one type of IRA. SEP IRAs, SAR-SEP IRAs, and SIMPLE IRAs are employersponsored IRAs.
Sources: Investment Company Institute and U.S. Census Bureau. See ICI Research Perspective, The Role of IRAs in U.S.
Households Saving for Retirement, 2014 and The U.S. Retirement Market, Fourth Quarter 2014.
152
LEARN MORE
The IRA
Investor
Profile:
Traditional
IRA Investors
Activity,
20072012.
Available at
www.ici.org/
ira.
FIGURE7.19
New Roth IRAs Often Are Opened with Contributions; New Traditional IRAs Often
Are Opened with Rollovers
Percentage of new IRAs opened in 2012 by type of IRA
Combination of activities
Contribution only
Conversion only
Rollover only
3
10
71
87
12
11
Roth IRAs
Traditional IRAs
Note: New IRAs are accounts that did not exist in The IRA Investor Database in 2011 and were opened by one of the paths
indicated in 2012. The calculation excludes IRAs that changed financial services firms. The samples are 0.2 million new
Roth IRA investors aged 18 or older at year-end 2012 and 0.7 million new traditional IRA investors aged 25 to 74 at
year-end 2012. Components may not add to 100 percent because of rounding.
Source: The IRA Investor Database. See ICI Research Report, The IRA Investor Profile: Roth IRA Investors Activity,
20072012.
153
LEARN MORE
The Role of
IRAs in U.S.
Households
Saving for
Retirement,
2014.
Available at
www.ici.org/
perspective.
154
FIGURE7.20
61
A financial professional
50
Employer (printed or
online materials, seminars,
workshops)
Printed materials
provided by financial
services firms
38
11
38
4
35
Seminars, workshops,
or phone representatives
from financial services firms
6
35
Spouse or partner
5
28
10
26
3
20
6
9
Other2
1 Multiple
155
IRA Portfolios
LEARN MORE
The IRA
Investor
Profile: Roth
IRA Investors
Activity,
20072012.
Available at
www.ici.org/
ira.
156
FIGURE7.21
2.5
4.0
13.8
13.0
6.9
7.9
22.7
17.0
11.3
4.9
50.4
45.6
1.8
1.0
16.2
10.2
13.3
12.6
3.7
62.2
58.5
2 Bond
157
Roth IRA Investors Rarely Take Withdrawals; Traditional IRA Investors Are Heavily
Affected by RMDs
Percentage of IRA investors with withdrawals by type of IRA and investor age, 2012
80
22
20
3
25 to 59
5
60 to 69
5
70 or older
4
All (25 or older)
158
LEARN MORE
Individual
Retirement
Account
Resource
Center.
Available at
www.ici.org/
iraresource.
Traditional IRA Withdrawals Among Retirees Often Are Used to Pay for Living
Expenses
Percentage of traditional IRAowning households with withdrawals by retirement status, 1 mid-2014
Retired 1, 2
Not retired 3
41
36
22
17
12
20
22
28
38
28
13
10
The household was considered retired if either the head of household or spouse responded affirmatively to the
question: Are you retired from your lifetime occupation?
2 The base of respondents includes the 15percent of traditional IRAowning households that were retired in mid-2014
and took withdrawals in tax year 2013.
3 The base of respondents includes the 5percent of traditional IRAowning households that were not retired in mid-2014
and took withdrawals in tax year 2013.
Note: Multiple responses are included.
Source: ICI IRA Owners Survey. See ICI Research Perspective, The Role of IRAs in U.S. Households Saving for
Retirement, 2014.
1
159
160
FIGURE7.24
Other investments
Mutual funds
13,127
6,222
7,443
6,765
3,897
3,042
3,723
55%
DC plans
3,546
IRAs
48%
6,905
2,725
53%
364
Equity, balanced,
and bond mutual funds
2,361
13%
Money market
funds
e Data
are estimated.
Sources: Investment Company Institute, Federal Reserve Board, American Council of Life Insurers, and Internal Revenue
Service Statistics of Income Division. See Investment Company Institute, The U.S. Retirement Market, Fourth Quarter
2014.
Across the entire U.S. retirement market, mutual funds play a major role
in IRAs and employer-sponsored DC plans, such as 401(k) plans. At yearend 2014, investors held slightly more mutual fund assets in DC plans
($3.7trillion, or 55percent of total DC plan assets) than in IRAs ($3.5 trillion,
or 48percent of total IRA assets) (Figure7.25). Among DC plans, 401(k) plans
held the most assets in mutual funds, with $2.9 trillion, followed by 403(b)
plans ($456 billion), other private-sector DC plans ($287 billion), and 457
plans ($112 billion).
161
FIGURE7.25
Equity
Domestic
World
Balanced 1
Bond
Money
market
Total
$1,484
$465
$783
$593
$221
$3,546
1,763
500
873
444
143
3,723
401(k) plans
1,312
406
730
321
99
2,868
403(b) plans
284
37
79
37
20
456
62
16
19
14
112
105
41
46
72
23
287
3,248
965
1,656
1,037
364
7,269
IRAs 2
DC plans
457 plans
Other privatesector DC plans3
Total
Balanced funds invest in a mix of equities and fixed-income securities. Most target date and lifestyle funds are counted
in this category.
2 IRAs include traditional IRAs, Roth IRAs, and employer-sponsored IRAs (SEP IRAs, SAR-SEP IRAs, and SIMPLE IRAs).
3 Other private-sector DC plans include Keoghs and other private-sector DC plans without 401(k) features.
Note: Components may not add to the total because of rounding.
Source: Investment Company Institute, The U.S. Retirement Market, Fourth Quarter 2014
1
162
LEARN MORE
For ICI
resources on
target date
funds, visit
www.ici.org/
trdf.
Assets in target date and lifestyle mutual funds totaled $1.1 trillion at yearend 2014, up from $977 billion at year-end 2013 (Figure7.26). Target date
mutual funds assets were up 14percent in 2014, increasing from $618 billion
to $703billion. Assets in lifestyle mutual funds grew 10percent in 2014, rising
from $359 billion to $394 billion. The bulk (89percent) of target date mutual
fund assets was held in retirement accounts, compared with 43percent of
lifestyle mutual fund assets.
163
FIGURE7.26
703
Other investors
IRAs1
DC plans2
618
63
183
115
9
26
80
71
44 5 16 7
29 9 49
2004
2005
2006
40
15 160
11
32
128
116
2007
2008
340
33
256
21 66
49
186
2009
241
2010
376
36
74
2011
149
128
96
427
266
77
477
340
2012
2013
2014
394
359
262
145
145
43
50
50
58
49
62
70
67
2008
2009
2010
2011
238
189
131
85
63
46
16
24
2004
21
47
2005
120
94
34
61
72
2006
2007
206
231
176
127
93
46
292
264
33
224
161
71
93
73
81
78
2012
2013
2014
IRAs include traditional IRAs, Roth IRAs, and employer-sponsored IRAs (SEP IRAs, SAR-SEP IRAs, and SIMPLE IRAs).
plans include 401(k) plans, 403(b) plans, 457 plans, Keoghs, and other DC plans without 401(k) features.
3 A target date mutual fund typically rebalances its portfolio to become less focused on growth and more focused on
income as it approaches and passes the target date of the fund, which is usually included in the funds name.
4 A lifestyle mutual fund maintains a predetermined risk level and generally contains conservative, moderate, or
aggressive, in the funds name.
Note: Components may not add to the total because of rounding.
Source: Investment Company Institute, The U.S. Retirement Market, Fourth Quarter 2014
1
2 DC
164
LEARN MORE
529 Plan
Program
Statistics.
Available at
www.ici.org/
research/
stats/529s.
165
205.1
224.7
144.9
116.9
112.5
89.4
68.7
35.1
8.5
2001
2003
2005
2007
2008
2009
2011
2013
2014
Note: Data were estimated for a few individual state observations in order to construct a continuous time series.
Sources: Investment Company Institute and College Savings Plans Network. See Investment Company Institute, 529 Plan
Program Statistics, December 2014.
166
FIGURE7.28
23
35 to 44
27
45 to 54
28
55 to 64
13
65 or older
Education level
High school diploma or less
20
27
Completed college
22
31
Household income 3
Less than $25,000
$25,000 to $34,999
$35,000 to $49,999
11
$50,000 to $74,999
19
$75,000 to $99,999
16
$100,000 or more
45
35
One
26
Two
25
Three or more
14
Households saving for college are households that own education savings plans (Coverdell ESAs or 529 plans) or that
said paying for education was one of their financial goals for their mutual funds.
2 Age is based on the sole or co-decisionmaker for saving and investing.
3 Total reported is household income before taxes in 2013.
4 The number of children reported is children younger than 18 living in the home.
1
167
PART TWO
Data Tables
Data Section 1
170
Data Section 1
Data Tables
Section 1
Mutual Fund Totals
Table 1: Total Net Assets, Number of Funds, and Number of Share Classes of the Mutual Fund Industry . . . . . . . . . . 173
2: Total Sales, New Sales, Exchange Sales, Redemptions, and Exchange
Redemptions of the Mutual Fund Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
3: Total Net Assets of the Mutual Fund Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
4: Total Net Assets of the Mutual Fund Industry by Composite Investment Objective . . . . . . . . . . . . . . . . . . . . 176
5: Number of Funds of the Mutual Fund Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
6: Number of Funds of the Mutual Fund Industry by Composite Investment Objective . . . . . . . . . . . . . . . . . . . . 178
7: Number of Share Classes of the Mutual Fund Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
8: Number of Share Classes of the Mutual Fund Industry by Composite Investment Objective . . . . . . . . . . . . . .180
Section 2
Closed-End Funds, Exchange-Traded Funds, and Unit Investment Trusts
Table 9: Closed-End Funds: Total Assets and Number of Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
10: Closed-End Funds: Gross Issuance, Gross Redemptions, and Net Issuance by Type of Fund . . . . . . . . . 182
11: Exchange-Traded Funds: Total Net Assets by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
12: Exchange-Traded Funds: Number of Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
13: Exchange-Traded Funds: Net Issuance by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
14: Unit Investment Trusts: Total Net Assets, Number of Trusts, and New Deposits by Type of Trust . . . . . . 186
Section 3
Long-Term Mutual Funds
Table 15: Liquid Assets and Liquidity Ratio of Long-Term Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
16: Liquidity Ratio of Long-Term Mutual Funds by Composite Investment Objective . . . . . . . . . . . . . . . . . . . . . 188
17: Net New Cash Flow of Long-Term Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
18: Net New Cash Flow and Components of Net New Cash Flow of Equity Mutual Funds . . . . . . . . . . . . . . . . . .190
19: Net New Cash Flow and Components of Net New Cash Flow of Hybrid Mutual Funds . . . . . . . . . . . . . . . . .191
20: Net New Cash Flow and Components of Net New Cash Flow of Bond Mutual Funds . . . . . . . . . . . . . . . . . . .192
21: Net New Cash Flow of Long-Term Mutual Funds by Composite Investment Objective . . . . . . . . . . . . . . . . . . 193
22: New Sales of Long-Term Mutual Funds by Composite Investment Objective . . . . . . . . . . . . . . . . . . . . . . . . .194
23: Exchange Sales of Long-Term Mutual Funds by Composite Investment Objective . . . . . . . . . . . . . . . . . . . . .195
24: Redemptions of Long-Term Mutual Funds by Composite Investment Objective . . . . . . . . . . . . . . . . . . . . . . .196
25: Exchange Redemptions of Long-Term Mutual Funds by Composite Investment Objective . . . . . . . . . . . . . . . 197
26: Annual Redemption Rates of Long-Term Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198
27: Portfolio Holdings of Long-Term Mutual Funds and Percentage of Total Net Assets . . . . . . . . . . . . . . . . . . .199
28: Portfolio Holdings of Long-Term Mutual Funds as a Percentage of Total Net Assets
by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
29: Paid and Reinvested Dividends of Long-Term Mutual Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . 201
30: Paid and Reinvested Capital Gains of Long-Term Mutual Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . 202
31: Total Portfolio, Common Stock, and Other Securities: Purchases, Sales,
and Net Purchases by Long-Term Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
32: Total Portfolio, Common Stock, and Other Securities: Purchases, Sales,
and Net Purchases by Equity Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204
33: Total Portfolio, Common Stock, and Other Securities: Purchases, Sales,
and Net Purchases by Hybrid Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
34: Total Portfolio, Common Stock, and Other Securities: Purchases, Sales,
and Net Purchases by Bond Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
DATA TABLES
171
Data Section 1
Section 4
Money Market Funds
Table 35: Money Market Funds: Total Net Assets, Number of Funds, and
Number of Share Classes by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
36: Total Net Assets of Money Market Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .208
37: Net New Cash Flow of Money Market Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .209
38: Net New Cash Flow and Components of Net New Cash Flow of Money Market Funds . . . . . . . . . . . . . . . . . . 210
39: Paid and Reinvested Dividends of Money Market Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . .211
40: Asset Composition of Taxable Government Money Market Funds as a Percentage of Total Net Assets . . . . . 212
41: Asset Composition of Taxable Prime Money Market Funds as a Percentage of Total Net Assets . . . . . . . . . . 213
Section 5
Additional Categories of Mutual Funds
Table 42: Alternative Strategies Mutual Funds: Total Net Assets, Net New Cash Flow, Number of Funds, and
Number of Share Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
43: Emerging Markets Debt Mutual Funds: Total Net Assets, Net New Cash Flow,
Number of Funds, and Number of Share Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
44: Floating-Rate High-Yield Bond Mutual Funds: Total Net Assets, Net New Cash Flow,
Number of Funds, and Number of Share Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
45: Funds of Funds: Total Net Assets, Net New Cash Flow, Number of Funds,
and Number of Share Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
46: Funds of Funds: Components of Net New Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .218
47: Index Mutual Funds: Total Net Assets and Net New Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
48: Index Mutual Funds: Number of Funds and Number of Share Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .220
49: Index Mutual Funds: New Sales and Exchange Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .221
50: Index Mutual Funds: Redemptions and Exchange Redemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .222
51: Inflation-Protected and Treasury Inflation-Protected Mutual Funds: Total Net Assets,
Net New Cash Flow, Number of Funds, and Number of Share Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .223
52: Mutual Funds by Market Capitalization: Total Net Assets and Net New
Cash Flow by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
53: Mutual Funds by Market Capitalization: Number of Funds and Number of
Share Classes by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .225
54: Retirement Mutual Funds: Total Net Assets, Net New Cash Flow, Number of
Funds, and Number of Share Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226
55: Retirement Mutual Funds: Components of Net New Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
56: Sector Mutual Funds: Total Net Assets and Net New Cash Flow by Type of Fund . . . . . . . . . . . . . . . . . . . . . .228
57: Sector Mutual Funds: Number of Funds and Number of Share Classes by Type of Fund . . . . . . . . . . . . . . . . .229
58: Target Date and Lifestyle Mutual Funds: Total Net Assets, Net New Cash Flow,
Number of Funds, and Number of Share Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .230
59: Target Date and Lifestyle Mutual Funds: Components of Net New Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . 231
60: Variable Annuity Mutual Funds: Total Net Assets, Net New Cash Flow,
and Number of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .232
61: Variable Annuity Mutual Funds: Components of Net New Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .233
Section 6
Institutional Investors in the Mutual Fund Industry
Table 62: Total Net Assets of Mutual Funds Held in Individual and Institutional Accounts . . . . . . . . . . . . . . . . . . . . . . .234
63: Total Net Assets of Institutional Investors in Mutual Funds by Type of
Institution and Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
64: Total Net Assets of Institutional Investors in Taxable Money Market Funds by
Type of Institution and Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .236
Section 7
Worldwide Mutual Fund Totals
Table 65: Worldwide Total Net Assets of Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .237
66: Worldwide Number of Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238
67: Worldwide Net Sales of Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
172
TABLE 1
Data Section 1
Total Net Assets, Number of Funds, and Number of Share Classes of the Mutual
Fund Industry
Year-end
Year
1940
1945
1950
1955
1960
1965
1970
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$0.45
1.28
2.53
7.84
17.03
35.22
47.62
45.87
51.28
48.94
55.84
94.51
134.76
241.37
296.68
292.99
370.68
495.39
715.67
769.17
809.37
980.67
1,065.19
1,393.19
1,642.54
2,069.96
2,155.32
2,811.29
3,525.80
4,468.20
5,525.21
6,846.34
6,964.63
6,974.91
6,383.48
7,402.48
8,095.80
8,891.38
10,398.16
12,000.17
9,602.89
11,112.62
11,832.99
11,631.89
13,052.23
15,034.78
15,852.34
Number of funds
68
73
98
125
161
170
361
426
452
477
505
526
564
665
857
1,026
1,243
1,528
1,835
2,312
2,737
2,935
3,079
3,403
3,824
4,534
5,325
5,725
6,248
6,684
7,314
7,791
8,155
8,305
8,243
8,127
8,045
7,977
8,123
8,041
8,039
7,666
7,554
7,587
7,588
7,713
7,923
Number of
share classes
1,243
1,528
1,835
2,312
2,737
2,935
3,177
3,587
4,208
5,562
7,697
9,007
10,352
12,002
13,720
15,262
16,738
18,022
18,983
19,321
20,041
20,554
21,264
21,638
22,262
21,651
21,910
22,282
22,635
23,386
24,222
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
173
Data Section 1
TABLE 2
Total Sales, New Sales, Exchange Sales, Redemptions, and Exchange Redemptions
of the Mutual Fund Industry
Billions of dollars, annual
Year
1945
1950
1955
1960
1965
1970
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total sales1
$0.29
0.52
1.21
2.10
4.36
4.63
10.06
13.72
17.07
37.16
119.32
247.42
472.13
626.94
547.77
680.12
953.85
1,204.90
1,251.19
1,176.81
1,444.84
1,564.81
2,037.64
2,749.68
3,187.49
3,075.63
3,600.62
4,671.44
5,801.23
7,230.40
9,043.58
11,109.54
12,866.21
13,168.76
12,393.59
12,191.21
13,939.33
17,409.26
23,470.65
26,346.73
20,679.71
18,209.76
17,836.92
17,022.02
18,157.31
18,715.54
New sales
$3.93
3.84
8.94
11.92
14.75
35.40
115.66
238.96
452.42
604.09
532.04
661.74
933.37
1,179.40
1,220.27
1,143.62
1,401.21
1,517.41
1,990.53
2,704.69
3,137.76
3,019.76
3,526.00
4,586.71
5,704.83
7,126.92
8,922.96
10,970.50
12,747.53
13,084.32
12,315.40
12,101.07
13,812.50
17,228.70
23,236.42
26,132.96
20,528.31
18,052.99
17,660.78
16,830.75
17,967.72
18,499.61
Exchange sales2
$1.52
2.24
3.97
5.83
10.10
14.44
28.25
35.67
36.66
46.55
107.75
205.68
134.28
130.66
138.79
155.75
197.43
248.79
317.55
351.53
504.73
613.44
742.97
949.96
1,149.75
797.34
747.34
572.50
409.00
420.84
487.72
606.47
733.84
529.97
420.18
448.06
422.03
517.69
425.48
Redemptions
$0.11
0.28
0.44
0.84
1.96
2.99
9.57
16.41
16.69
31.53
86.74
216.08
362.44
588.35
565.83
607.02
864.88
1,015.64
1,178.75
1,166.67
1,327.05
1,470.83
1,879.69
2,548.28
2,904.44
2,928.62
3,314.86
4,266.20
5,324.29
6,649.27
8,562.10
10,586.59
12,242.32
13,011.36
12,361.66
12,038.96
13,546.81
16,751.98
22,352.20
25,725.70
20,680.23
18,319.72
17,738.34
16,620.55
17,779.44
18,389.31
Exchange redemptions3
$1.44
2.31
3.94
5.89
9.94
14.59
27.86
36.03
37.11
46.84
107.96
207.35
134.24
131.95
140.98
154.31
198.15
253.95
325.00
351.08
503.94
618.49
743.37
947.36
1,145.42
798.08
745.65
573.76
417.95
432.43
492.20
611.96
728.84
528.13
434.88
466.52
434.12
531.09
433.36
Total sales are the dollar value of new sales plus sales made through reinvestment of income dividends from existing
accounts, but exclude reinvestment of capital gains distributions.
2 Exchange sales are the dollar value of mutual fund shares switched into funds within the same fund group.
3 Exchange redemptions are the dollar value of mutual fund shares switched out of funds and into other funds within the same
fund group.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
1
174
TABLE 3
Data Section 1
Total
Equity
Money market
funds
1960
1965
1970
1975
1976
1977
1978
1979
1980
1981
1982
1983
$17.03
35.22
47.62
45.87
51.28
48.94
55.84
94.51
134.76
241.37
296.68
292.99
$16.00
32.76
45.13
37.49
39.19
34.07
32.67
35.88
44.42
41.19
53.63
76.97
$1.02
2.46
2.49
4.68
8.39
10.98
12.31
13.10
13.98
14.01
23.21
36.63
$3.70
3.69
3.89
10.86
45.53
76.36
186.16
219.84
179.39
Long-term funds
Equity
Year
Total
Domestic
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$370.68
495.39
715.67
769.17
809.37
980.67
1,065.19
1,393.19
1,642.54
2,069.96
2,155.32
2,811.29
3,525.80
4,468.20
5,525.21
6,846.34
6,964.63
6,974.91
6,383.48
7,402.48
8,095.80
8,891.38
10,398.16
12,000.17
9,602.89
11,112.62
11,832.99
11,631.89
13,052.23
15,034.78
15,852.34
$74.55
103.39
138.98
158.02
171.40
221.45
211.18
365.21
468.41
626.54
691.57
1,052.57
1,440.81
2,021.66
2,586.31
3,456.64
3,369.73
2,947.93
2,273.05
3,118.32
3,626.37
3,929.72
4,472.13
4,694.65
2,738.82
3,564.56
4,055.64
3,856.91
4,326.34
5,728.52
6,234.99
Bond
World
Hybrid
Taxable
$5.19
7.94
15.47
17.43
17.98
23.59
28.30
39.52
45.68
114.13
161.19
196.51
285.20
346.37
391.64
585.25
564.75
444.47
369.37
535.05
716.20
955.73
1,360.45
1,718.57
898.60
1,307.98
1,540.98
1,356.08
1,612.41
2,034.20
2,079.33
$11.15
17.61
25.76
29.25
26.35
35.64
35.98
52.04
77.63
142.33
161.40
206.70
248.36
311.90
360.04
374.64
360.92
358.03
335.28
447.57
552.25
621.48
731.50
821.52
562.26
717.58
841.41
883.06
1,029.26
1,267.33
1,351.84
$25.45
83.20
167.63
171.40
168.96
166.25
171.14
239.77
308.37
367.05
302.84
349.21
396.56
457.50
536.96
545.18
545.58
642.96
810.58
925.21
971.03
1,018.68
1,130.52
1,305.51
1,233.18
1,748.11
2,117.07
2,346.90
2,810.53
2,787.10
2,894.45
Municipal
Taxable
Tax-exempt
$20.79
39.44
75.67
76.97
86.73
105.66
120.25
154.20
196.26
254.60
227.31
253.29
253.07
271.89
298.59
271.48
278.41
296.22
330.13
336.31
328.24
338.95
365.09
374.15
337.79
458.50
473.95
497.53
580.17
499.29
566.48
$209.75
207.55
228.35
254.68
272.20
358.62
414.56
452.46
451.35
461.88
501.11
631.32
763.94
901.23
1,166.97
1,413.25
1,611.38
2,026.23
1,988.78
1,749.73
1,589.70
1,690.45
1,969.42
2,617.67
3,338.56
2,916.96
2,473.92
2,399.72
2,406.10
2,447.72
2,464.47
$23.80
36.25
63.81
61.42
65.76
69.47
83.78
89.98
94.84
103.44
109.89
121.69
137.87
157.66
184.71
199.90
233.87
259.08
276.30
290.29
312.00
336.37
369.03
468.09
493.68
398.94
330.01
291.70
287.43
270.61
260.79
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. The data contain a series
break beginning in 1984. All funds were reclassified in 1984, and a separate category was created for hybrid funds.
Components may not add to the total because of rounding.
175
176
$1,433.95
1,105.24
765.54
1,041.14
1,148.56
1,232.82
1,319.36
1,419.60
808.69
1,085.65
1,248.01
1,178.32
1,318.94
1,724.95
1,856.49
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$564.75
444.47
369.37
535.05
716.20
955.73
1,360.45
1,718.57
898.60
1,307.98
1,540.98
1,356.08
1,612.41
2,034.20
2,079.33
World
Equity funds
$1,935.78
1,842.69
1,507.51
2,077.18
2,477.81
2,696.90
3,152.78
3,275.05
1,930.13
2,478.91
2,807.64
2,678.58
3,007.39
4,003.57
4,378.50
Total return
$360.92
358.03
335.28
447.57
552.25
621.48
731.50
821.52
562.26
717.58
841.41
883.06
1,029.26
1,267.33
1,351.84
Hybrid funds
$245.69
311.29
406.26
473.95
518.25
570.10
640.32
760.34
736.40
1,050.03
1,241.29
1,365.08
1,571.98
1,451.22
1,525.18
Investment
grade
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
Capital
appreciation
$109.94
109.20
108.11
158.99
167.89
159.36
175.73
175.96
118.23
198.06
243.48
271.18
341.92
419.63
378.48
High yield
World
$32.98
31.75
34.12
43.97
52.63
59.95
80.90
110.01
105.65
158.73
246.41
294.42
367.07
429.02
463.73
$124.87
154.14
218.98
197.99
176.61
167.34
153.15
158.19
188.04
210.31
225.43
242.09
298.28
239.42
253.88
$32.10
36.57
43.10
50.31
55.67
61.93
80.42
101.01
84.86
130.99
160.46
174.13
231.28
247.80
273.17
$131.92
139.78
152.72
149.26
144.09
147.46
154.42
155.94
135.09
159.26
156.16
158.89
177.53
144.82
156.16
$146.49
156.44
177.41
187.05
184.15
191.50
210.67
218.21
202.70
299.24
317.80
338.64
402.64
354.47
410.32
Bond funds
Total Net Assets of the Mutual Fund Industry by Composite Investment Objective
TABLE 4
$1,611.38
2,026.23
1,988.78
1,749.73
1,589.70
1,690.45
1,969.42
2,617.67
3,338.56
2,916.96
2,473.92
2,399.72
2,406.10
2,447.72
2,464.47
Taxable
$233.87
259.08
276.30
290.29
312.00
336.37
369.03
468.09
493.68
398.94
330.01
291.70
287.43
270.61
260.79
Tax-exempt
Data Section 1
TABLE 5
Data Section 1
Total
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
Equity
361
392
410
421
431
426
452
477
505
526
564
665
857
1,026
323
350
364
366
343
314
302
296
294
289
288
306
340
396
Long-term funds
38
42
46
55
73
76
102
131
150
159
170
180
199
257
Equity
Year
Total
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1,243
1,528
1,835
2,312
2,737
2,935
3,079
3,403
3,824
4,534
5,325
5,725
6,248
6,684
7,314
7,791
8,155
8,305
8,243
8,127
8,045
7,977
8,123
8,041
8,039
7,666
7,554
7,587
7,588
7,713
7,923
Domestic
430
519
621
743
897
941
944
985
1,086
1,280
1,463
1,611
1,902
2,183
2,622
3,004
3,315
3,610
3,714
3,659
3,651
3,659
3,748
3,678
3,655
3,419
3,322
3,260
3,218
3,194
3,239
Bond
World
29
43
57
81
109
128
155
206
239
306
423
528
668
768
890
949
1,055
1,085
1,018
929
887
912
995
1,060
1,139
1,172
1,193
1,265
1,278
1,345
1,407
Hybrid
89
103
121
164
179
189
192
211
234
281
360
411
465
500
525
531
508
473
458
474
472
481
500
496
511
481
494
519
562
602
661
Money market
funds
Taxable
Municipal
159
229
302
415
522
561
584
658
773
951
1,104
1,167
1,244
1,287
1,351
1,375
1,367
1,308
1,295
1,313
1,324
1,315
1,320
1,326
1,311
1,291
1,310
1,348
1,393
1,457
1,531
111
174
247
366
420
443
463
523
628
796
1,012
1,011
981
933
900
887
871
814
770
779
767
740
713
676
640
599
583
563
557
560
557
15
36
48
50
61
78
106
179
318
373
Money market funds
Taxable
Tax-exempt
331
350
360
389
433
470
505
552
585
627
649
676
669
685
687
704
704
690
677
660
639
593
573
545
534
476
442
431
400
382
365
94
110
127
154
177
203
236
268
279
293
314
321
319
328
339
341
335
325
311
313
305
277
274
260
249
228
210
201
180
173
163
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. The data contain a series
break beginning in 1984. All funds were reclassified in 1984, and a separate category was created for hybrid funds.
177
178
1,555
1,723
1,729
1,680
1,650
1,631
1,669
1,577
1,556
1,442
1,393
1,358
1,343
1,327
1,330
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1,055
1,085
1,018
929
887
912
995
1,060
1,139
1,172
1,193
1,265
1,278
1,345
1,407
World
Equity funds
1,760
1,887
1,985
1,979
2,001
2,028
2,079
2,101
2,099
1,977
1,929
1,902
1,875
1,867
1,909
Total return
508
473
458
474
472
481
500
496
511
481
494
519
562
602
661
Hybrid funds
575
557
575
601
614
609
594
605
595
571
583
579
581
594
605
Investment
grade
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
Capital
appreciation
Year-end
219
224
212
212
217
228
221
223
216
207
210
211
218
231
241
High yield
155
140
126
121
122
123
139
151
161
170
183
217
254
289
347
World
323
296
284
281
275
262
256
243
236
237
229
223
216
214
199
95
91
98
98
96
93
110
104
103
106
105
118
124
129
139
589
550
515
523
513
498
478
448
415
377
361
346
336
331
322
282
264
255
256
254
242
235
228
225
222
222
217
221
229
235
Bond funds
TABLE 6
704
690
677
660
639
593
573
545
534
476
442
431
400
382
365
Taxable
335
325
311
313
305
277
274
260
249
228
210
201
180
173
163
Tax-exempt
Data Section 1
TABLE 7
Data Section 1
Total
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1,243
1,528
1,835
2,312
2,737
2,935
3,177
3,587
4,208
5,562
7,697
9,007
10,352
12,002
13,720
15,262
16,738
18,022
18,983
19,321
20,041
20,554
21,264
21,638
22,262
21,651
21,910
22,282
22,635
23,386
24,222
Domestic
430
519
621
743
897
941
962
1,021
1,189
1,560
2,026
2,442
3,056
3,860
4,872
5,818
6,725
7,738
8,427
8,546
9,002
9,259
9,641
9,706
9,881
9,342
9,206
9,178
9,148
9,224
9,423
Bond
World
29
43
57
81
109
128
166
227
263
385
630
845
1,155
1,449
1,770
1,968
2,299
2,511
2,515
2,369
2,357
2,501
2,775
3,030
3,385
3,550
3,710
3,944
4,037
4,258
4,525
Hybrid
89
103
121
164
179
189
199
223
257
347
515
634
749
873
964
1,026
1,007
994
1,030
1,112
1,202
1,344
1,355
1,354
1,424
1,374
1,449
1,561
1,691
1,864
2,027
Taxable
Municipal
Taxable
159
229
302
415
522
561
598
687
877
1,207
1,605
1,844
2,050
2,293
2,532
2,722
2,821
2,874
3,066
3,223
3,377
3,427
3,542
3,640
3,753
3,782
3,990
4,150
4,438
4,721
4,997
111
174
247
366
420
443
490
558
708
1,054
1,660
1,862
1,889
1,978
1,955
1,998
2,031
1,957
1,939
2,040
2,050
1,992
1,938
1,893
1,829
1,757
1,774
1,719
1,698
1,748
1,743
331
350
360
389
433
470
522
591
616
672
858
953
1,005
1,075
1,137
1,230
1,331
1,405
1,463
1,462
1,477
1,464
1,454
1,447
1,443
1,330
1,281
1,255
1,174
1,141
1,101
Tax-exempt
94
110
127
154
177
203
240
280
298
337
403
427
448
474
490
500
524
543
543
569
576
567
559
568
547
516
500
475
449
430
406
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
179
180
3,232
3,770
3,974
3,950
4,068
4,092
4,245
4,158
4,179
3,928
3,840
3,785
3,770
3,770
3,795
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2,299
2,511
2,515
2,369
2,357
2,501
2,775
3,030
3,385
3,550
3,710
3,944
4,037
4,258
4,525
World
Equity funds
3,493
3,968
4,453
4,596
4,934
5,167
5,396
5,548
5,702
5,414
5,366
5,393
5,378
5,454
5,628
Total return
1,007
994
1,030
1,112
1,202
1,344
1,355
1,354
1,424
1,374
1,449
1,561
1,691
1,864
2,027
Hybrid funds
1,141
1,190
1,341
1,462
1,551
1,574
1,604
1,655
1,660
1,629
1,707
1,721
1,797
1,845
1,875
Investment
grade
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
Capital
appreciation
Year-end
490
524
528
538
571
612
623
661
680
660
690
704
744
797
834
High yield
311
292
291
291
302
315
367
413
491
544
615
744
891
1,043
1,251
World
679
661
676
703
716
687
666
630
624
634
652
620
626
631
601
200
207
230
229
237
239
282
281
298
315
326
361
380
405
436
1,393
1,325
1,286
1,333
1,333
1,306
1,258
1,220
1,151
1,069
1,065
1,029
1,002
1,010
990
638
632
653
707
717
686
680
673
678
688
709
690
696
738
753
Bond funds
Number of Share Classes of the Mutual Fund Industry by Composite Investment Objective
1,331
1,405
1,463
1,462
1,477
1,464
1,454
1,447
1,443
1,330
1,281
1,255
1,174
1,141
1,101
Taxable
524
543
543
569
576
567
559
568
547
516
500
475
449
430
406
Tax-exempt
TABLE 8
Data Section 1
$10,791
13,109
14,581
15,462
16,018
18,078
19,830
20,536
22,529
24,696
24,557
22,261
26,596
42,987
63,732
77,090
88,013
87,869
45,753
52,940
60,461
62,414
68,461
81,757
88,979
Domestic
$5,751
6,115
7,100
12,466
21,505
23,769
27,074
29,011
25,011
16,494
11,986
8,748
6,988
9,743
18,072
27,784
33,657
57,329
26,525
34,489
36,239
33,441
32,179
32,429
30,383
$16,820
19,403
24,632
30,909
26,604
28,678
28,418
28,315
34,127
30,888
28,581
26,606
25,643
55,428
63,890
63,935
67,962
62,571
33,673
44,126
48,985
48,009
53,638
58,489
56,732
Domestic
taxable
Bond
$16,482
29,519
45,593
60,100
56,035
60,318
59,540
61,992
63,628
64,513
68,266
74,467
90,024
94,060
94,841
94,563
94,526
88,920
67,334
77,677
77,140
84,100
90,524
82,871
90,169
Domestic
municipal
$9,170
7,947
8,674
12,501
10,425
11,698
12,046
11,912
10,454
10,348
9,676
9,102
9,414
11,539
12,847
12,559
13,079
15,682
10,891
13,660
14,965
14,422
18,746
23,737
22,874
Global/
International
Note: Components may not add to the total because of rounding. Totals are inclusive of preferred share classes.
Total
$59,014
76,092
100,581
131,438
130,586
142,540
146,908
151,767
155,749
146,940
143,066
141,185
158,664
213,756
253,382
275,932
297,236
312,371
184,175
222,894
237,790
242,387
263,548
279,282
289,137
Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Global/
International
Equity
Total assets
Millions of dollars, year-end
245
277
370
491
509
498
495
485
491
510
481
489
543
581
618
634
645
662
642
627
624
632
602
599
568
Total
40
39
42
47
49
48
49
45
44
49
53
51
63
75
95
120
128
136
128
117
117
125
125
131
126
Domestic
51
52
61
70
86
91
91
89
83
73
69
64
59
55
61
71
74
92
93
91
87
87
86
85
84
Global/
International
Equity
84
86
99
120
123
119
118
115
123
117
109
109
105
127
137
132
134
131
128
127
130
132
131
132
124
Domestic
taxable
Number of funds
Year-end
Data Section 2
TABLE 9
Bond
52
85
148
225
219
207
205
204
211
241
220
238
291
297
295
280
276
269
260
260
258
256
223
210
194
18
15
20
29
32
33
32
32
30
30
30
27
25
27
30
31
33
34
33
32
32
32
37
41
40
Domestic
Global/
municipal International
Data Section 1
181
TABLE 10
Closed-End Funds: Gross Issuance, Gross Redemptions, and Net Issuance by Type of Fund
Millions of dollars, annual
Equity funds
Year
Total
Data Section 2
Gross issuance1
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$24,895
40,810
27,991
21,388
12,745
31,086
275
3,615
14,017
14,990
16,774
17,012
7,699
Domestic
Global/
International
Bond funds
Domestic
taxable
Domestic
municipal
Global/
International
$9,191
11,187
15,424
12,559
7,992
5,973
8
549
3,719
3,850
3,815
4,311
3,996
$3
50
5,714
6,628
2,505
19,764
145
485
114
1,469
533
106
619
$2,309
25,587
5,820
2,046
1,718
2,221
121
876
2,374
1,000
4,088
4,525
516
$13,392
2,954
5
31
196
433
0
1,389
7,454
8,669
6,258
1,643
2,567
$0
1,032
1,028
124
334
2,695
0
317
358
2
2,081
6,428
1
2007
$2,717
2008
22,573
2009
6,875
2010
8,587
2011
8,972
2012
5,459
2013
3,270
2014
2,933
Net issuance3
$1,024
7,060
2,916
1,724
644
974
214
152
$105
1,832
639
55
209
420
649
124
$254
6,891
1,664
474
276
838
604
411
$1,313
6,089
1,627
6,335
7,843
3,226
1,799
2,034
$20
701
30
0
0
0
5
213
2007
2008
2009
2010
2011
2012
2013
2014
$4,949
-7,052
-2,366
1,995
3,206
2,840
4,097
3,844
$19,659
-1,687
-154
59
1,260
113
-543
494
$1,966
-6,770
-788
1,900
724
3,249
3,921
105
$-880
-6,089
-238
1,119
825
3,032
-155
533
$2,675
-700
287
357
2
2,081
6,423
-212
Gross redemptions2
$28,369
-22,298
-3,259
5,430
6,018
11,315
13,742
4,766
1 Gross
issuance of shares is the value of net proceeds from underwritings, additional offerings, and other issuance. Data are
not available prior to 2002.
2 Gross redemptions of shares is the value of share repurchases and fund liquidations. Data are not available prior to 2007.
3 Net issuance of shares is the dollar value of gross issuance minus gross redemptions. A positive number indicates that gross
issuance exceeded gross redemptions. A negative number indicates that gross redemptions exceeded gross issuance. Data
are not available prior to 2007.
Note: Components may not add to the total because of rounding. Totals are inclusive of preferred share classes.
182
183
$464
424
1,052
2,411
6,707
15,568
33,873
65,585
82,993
102,143
150,983
227,540
300,820
422,550
608,422
531,288
777,128
991,989
1,048,134
1,337,112
1,674,616
1,974,377
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Equity
$464
424
1,052
2,159
6,200
14,058
29,374
60,529
74,752
86,985
120,430
163,730
186,832
232,487
300,930
266,161
304,044
372,377
400,696
509,338
761,701
935,652
Broad-based
$484
2,507
3,015
5,224
5,919
11,901
20,315
28,975
43,655
64,117
58,374
82,053
103,807
108,548
135,378
202,706
267,523
Sector1
Domestic equity
$252
506
1,026
1,992
2,041
3,016
5,324
13,984
33,644
65,210
111,194
179,702
113,684
209,315
276,622
245,114
328,521
398,834
414,805
Global/
International
$1,335
4,798
14,699
28,906
35,728
74,528
101,081
109,176
120,016
64,042
56,974
Commodities2
Investment objective
$119
132
169
322
377
656
1,469
3,047
Hybrid
$3,915
4,667
8,516
15,004
20,514
34,648
57,209
107,018
137,781
184,222
243,203
245,862
296,376
Bond
$464
424
1,052
2,411
6,707
15,568
33,873
65,585
82,993
102,143
150,983
226,205
296,022
407,850
579,517
495,314
701,586
888,198
934,216
1,206,974
1,596,691
1,901,331
Index
$245
1,014
2,736
5,049
10,257
14,055
16,508
Actively
managed
Legal status
$1,335
4,798
14,699
28,906
35,728
74,528
101,055
108,868
119,881
63,869
56,538
Non1940 Act
ETFs3
2 This
This category includes funds both registered and not registered under the Investment Company Act of 1940.
category includes fundsboth registered and not registered under the Investment Company Act of 1940that invest primarily in commodities, currencies, and futures.
3 The funds in this category are not registered under the Investment Company Act of 1940.
4 Data for ETFs that invest primarily in other ETFs are excluded from the totals.
Note: Components may not add to the total because of rounding.
Sources: Investment Company Institute and Strategic Insight Simfund
Total
Year
TABLE 11
Data Section 2
$97
824
1,294
1,580
2,227
2,659
5,204
Funds of
funds4
Memo
184
1
1
2
19
19
29
30
80
102
113
119
152
204
359
629
728
797
923
1,134
1,194
1,294
1,411
Total
Broad-based
1
1
2
2
2
3
4
29
34
34
39
60
81
133
197
204
222
243
287
274
292
316
Equity
9
9
26
34
32
33
42
65
119
191
186
179
193
229
222
235
236
Sector1
Domestic equity
17
17
17
17
25
34
39
41
43
49
85
159
225
244
298
368
404
438
494
Global/
International
1
3
16
28
45
49
55
75
79
76
82
Commodities2
Investment objective
5
6
5
6
7
13
15
19
Hybrid
8
6
6
6
6
49
62
98
128
168
202
238
264
Bond
1
1
2
19
19
29
30
80
102
113
119
151
201
343
601
670
727
844
1,028
1,070
1,158
1,228
Index
13
21
25
33
44
61
111
Actively
managed
Legal status
1
3
16
28
45
49
54
73
80
75
72
Non1940 Act
ETFs3
2 This
This category includes funds both registered and not registered under the Investment Company Act of 1940.
category includes fundsboth registered and not registered under the Investment Company Act of 1940that invest primarily in commodities, currencies, and futures.
3 The funds in this category are not registered under the Investment Company Act of 1940.
4 Data for ETFs that invest primarily in other ETFs are excluded from the totals.
Sources: Investment Company Institute and Strategic Insight Simfund
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Year
Year-end
TABLE 12
Data Section 2
15
23
27
32
45
38
40
Funds of
funds4
Memo
185
$442
-28
443
842
3,160
5,158
10,221
40,591
26,911
35,477
5,737
29,084
16,941
21,589
61,152
88,105
-11,842
28,317
34,653
57,739
99,470
102,335
Broad-based
$484
1,596
1,033
2,735
2,304
3,587
6,514
6,719
9,780
18,122
30,296
14,329
10,187
9,682
14,307
34,434
40,593
Sector1
Domestic equity
Equity
$266
306
553
112
884
1,366
3,792
5,764
15,645
23,455
28,423
48,842
25,243
39,599
41,527
24,250
51,896
62,807
46,642
Global/
International
$1,353
2,859
8,475
9,062
10,567
28,410
8,155
2,940
8,889
-29,870
-1,420
Commodities2
Investment objective
$122
58
15
144
72
246
849
1,629
Hybrid
$3,729
721
3,778
6,756
5,729
13,318
22,952
45,958
29,652
46,045
52,318
12,195
51,007
Bond
Legal status
$442
-28
443
1,108
3,466
6,195
11,929
42,508
31,012
45,302
15,810
55,021
53,871
65,520
141,555
166,372
87,336
108,141
112,437
171,329
205,323
240,011
Index
$281
724
1,711
2,567
5,025
4,468
2,538
Actively
managed
$1,353
2,859
8,475
9,062
10,567
28,410
8,129
2,639
9,041
-29,906
-1,764
Non1940 Act
ETFs3
$107
237
433
389
510
1,180
2,423
Funds of
funds4
Memo
2 This
category includes funds both registered and not registered under the Investment Company Act of 1940.
category includes fundsboth registered and not registered under the Investment Company Act of 1940that invest primarily in commodities, currencies, and futures.
3 The funds in this category are not registered under the Investment Company Act of 1940.
4 Data for ETFs that invest primarily in other ETFs are excluded from the totals.
Note: Components may not add to the total because of rounding.
Sources: Investment Company Institute and Strategic Insight Simfund
$442
-28
443
1,108
3,466
6,195
11,929
42,508
31,012
45,302
15,810
56,375
56,729
73,995
150,617
177,220
116,469
117,982
117,642
185,394
179,885
240,785
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1 This
Total
Year
TABLE 13
Data Section 2
186
$105,390
102,828
97,925
87,574
73,682
73,125
72,204
84,761
93,943
91,970
74,161
49,249
36,016
35,826
37,267
40,894
49,662
53,040
28,543
38,336
50,567
59,931
71,725
86,504
101,136
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$4,192
4,940
6,484
8,494
9,285
14,019
22,922
40,747
56,413
62,128
48,060
26,467
14,651
19,024
23,201
28,634
38,809
43,295
20,080
24,774
34,112
40,638
51,905
70,850
85,957
Equity
$9,456
9,721
9,976
8,567
7,252
8,094
8,485
6,480
5,380
4,283
3,502
3,784
4,020
3,311
2,635
2,280
2,142
2,066
2,007
3,668
3,780
3,602
4,063
3,560
3,065
Taxable
debt
$91,742
88,167
81,465
70,513
57,144
51,013
40,796
37,533
32,151
25,559
22,599
18,999
17,345
13,491
11,432
9,980
8,711
7,680
6,456
9,894
12,675
15,691
15,757
12,094
12,114
Tax-free
debt
Total trusts
Year
12,131
12,388
13,598
13,740
13,310
12,979
11,764
11,593
10,966
10,414
10,072
9,295
8,303
7,233
6,499
6,019
5,907
6,030
5,984
6,049
5,971
6,043
5,787
5,552
5,381
Total trusts
171
168
230
258
306
301
378
563
872
1,081
1,554
1,500
1,247
1,206
1,166
1,251
1,566
1,964
2,175
2,145
2,212
2,395
2,426
2,428
2,503
Equity
722
678
745
679
568
578
591
513
414
409
369
324
366
320
295
304
319
327
343
438
491
512
553
580
591
Taxable
debt
Year-end
Number of trusts
11,238
11,542
12,623
12,803
12,436
12,100
10,795
10,517
9,680
8,924
8,149
7,471
6,690
5,707
5,038
4,464
4,022
3,739
3,466
3,466
3,268
3,136
2,808
2,544
2,287
Tax-free
debt
Unit Investment Trusts: Total Net Assets, Number of Trusts, and New Deposits by Type of Trust
TABLE 14
$7,489
8,195
8,909
9,359
8,915
11,264
21,662
38,546
47,675
52,046
43,649
19,049
11,600
12,731
17,125
22,598
29,057
35,836
23,590
22,293
30,936
36,026
43,404
55,628
65,530
Total trusts
$495
900
1,771
3,206
3,265
6,743
18,316
35,855
45,947
50,629
42,570
16,927
9,131
10,071
14,559
21,526
28,185
35,101
22,335
16,159
25,003
31,900
40,012
53,719
63,991
Equity
$1,349
1,687
2,385
1,598
1,709
1,154
800
771
562
343
196
572
862
931
981
289
294
298
557
2,201
928
765
1,236
916
624
Taxable
debt
New deposits
Data Section 2
$5,644
5,609
4,752
4,555
3,941
3,367
2,546
1,919
1,166
1,074
883
1,550
1,607
1,729
1,585
782
578
438
698
3,933
5,006
3,361
2,157
993
915
Tax-free
debt
TABLE 15
Liquid assets
Millions of dollars
Total
Equity
funds
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$12,181
20,593
30,611
37,930
44,980
44,603
48,440
60,385
73,984
99,436
120,430
141,755
151,988
198,826
191,393
219,098
277,164
222,475
208,939
259,641
307,111
303,189
346,768
381,679
296,540
365,787
330,295
461,767
515,396
651,842
725,615
$7,295
10,452
14,612
16,319
17,742
25,602
27,344
30,657
42,417
57,539
70,885
97,743
107,667
145,565
143,516
174,692
225,023
170,361
120,500
154,877
184,140
190,906
218,670
266,285
185,536
169,799
192,757
182,548
200,436
272,507
291,691
Hybrid
funds
$878
1,413
2,514
2,730
2,986
5,747
4,198
3,309
6,560
16,613
19,929
19,271
17,954
24,645
25,289
20,979
26,798
26,911
25,423
30,654
36,419
43,133
57,461
56,813
52,712
52,845
61,013
70,660
99,570
142,258
148,623
Bond
funds
Total
Equity
funds
Hybrid
funds
Bond
funds
$4,007
8,728
13,485
18,881
24,252
13,253
16,899
26,419
25,007
25,284
29,616
24,741
26,367
28,616
22,588
23,427
25,343
25,203
63,016
74,110
86,552
69,150
70,637
58,581
58,291
143,143
76,525
208,559
215,390
237,077
285,301
8.9%
8.2
7.2
8.4
9.5
8.1
8.5
7.1
6.7
6.6
7.8
6.9
5.8
5.8
4.6
4.2
5.4
4.7
5.1
4.8
5.0
4.4
4.3
4.3
5.1
4.7
3.7
5.2
5.0
5.3
5.5
9.1%
9.4
9.5
9.3
9.4
10.4
11.4
7.6
8.3
7.8
8.3
7.8
6.2
6.1
4.8
4.3
5.7
5.0
4.6
4.2
4.2
3.9
3.7
4.2
5.1
3.5
3.4
3.5
3.4
3.5
3.5
7.9%
8.0
9.8
9.3
11.3
16.1
11.7
6.4
8.5
11.7
12.3
9.3
7.2
7.9
7.0
5.6
7.4
7.5
7.6
6.8
6.6
6.9
7.9
6.9
9.4
7.4
7.3
8.0
9.7
11.2
11.0
8.7%
7.1
5.5
7.6
9.5
4.9
5.8
6.7
5.0
4.1
5.6
4.1
4.1
3.9
2.7
2.9
3.1
2.7
5.5
5.9
6.7
5.1
4.7
3.5
3.7
6.5
3.0
7.3
6.4
7.2
8.2
Data Section 3
Year
Percent
* Liquidity ratio is the ratio of liquid assets divided by total net assets at year-end.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
187
188
6.1%
4.9
4.9
3.7
3.6
3.3
3.4
4.3
6.1
4.5
3.5
3.8
3.6
3.6
3.3
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
7.7%
6.2
5.7
5.8
5.5
5.2
4.3
5.2
6.1
3.9
4.4
4.5
4.0
4.5
4.9
World
4.9%
4.8
4.1
4.1
4.2
3.7
3.7
3.6
4.2
2.8
2.9
2.8
2.9
3.0
2.9
Total return
7.4%
7.5
7.6
6.8
6.6
6.9
7.9
6.9
9.4
7.4
7.3
8.0
9.7
11.2
11.0
Hybrid funds
4.5%
3.3
10.7
9.7
8.9
6.5
6.9
2.3
1.1
6.8
0.3
7.2
5.4
6.8
7.4
Investment
grade
9.1%
7.7
7.9
6.1
6.1
5.2
4.9
4.6
10.7
5.4
5.8
7.2
5.6
4.3
4.4
High yield
-2.2%
-3.7
-2.5
3.3
6.1
6.1
12.5
17.0
13.0
13.6
16.5
17.5
15.2
17.3
19.4
World
-2.8%
-0.5
0.5
1.7
3.8
1.2
-4.1
-0.8
4.4
4.0
-2.5
0.9
2.8
1.0
2.5
Government
Bond funds
-2.2%
0.6
-1.0
7.1
7.5
6.2
2.2
2.8
3.7
6.6
2.7
5.2
6.9
7.0
8.0
Multisector
3.1%
2.3
2.6
2.2
2.9
2.5
2.0
1.8
1.7
2.8
2.1
3.1
3.4
2.0
3.6
State muni
3.5%
3.2
4.2
3.7
6.5
5.7
4.5
4.6
4.9
6.0
5.2
6.6
6.2
6.5
7.6
National muni
Note: Liquidity ratio is the ratio of liquid assets divided by total net assets at year-end. Data for funds that invest primarily in other mutual funds were excluded from the series.
Capital
appreciation
Year
Equity funds
Percent, year-end
TABLE 16
Data Section 3
TABLE 17
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$19,194
73,490
129,991
29,776
-23,119
8,731
21,211
106,213
171,696
242,049
75,160
122,208
231,874
272,030
241,796
169,780
228,874
129,188
120,583
215,884
209,890
192,016
227,078
224,321
-224,900
389,078
243,222
27,953
198,441
159,674
96,090
Equity funds
$4,336
6,643
20,386
19,231
-14,948
6,774
12,915
39,888
78,983
127,260
114,525
124,392
216,937
227,106
156,875
187,565
315,711
33,439
-29,326
144,055
171,937
123,967
147,773
73,328
-229,407
-1,952
-24,414
-129,263
-152,680
159,553
25,216
Hybrid funds
Bond funds
$1,801
3,720
6,988
3,748
-3,684
3,183
1,463
7,067
21,725
42,619
21,998
3,738
11,795
15,757
10,265
-13,018
-36,722
7,285
8,043
39,079
53,055
42,754
19,857
40,384
-25,525
19,792
35,295
39,549
44,895
71,293
27,346
$13,058
63,127
102,618
6,797
-4,488
-1,226
6,833
59,258
70,989
72,169
-61,362
-5,922
3,141
29,166
74,656
-4,767
-50,115
88,463
141,865
32,750
-15,102
25,295
59,448
110,609
30,032
371,238
232,342
117,667
306,226
-71,172
43,528
Data Section 3
Year
* Net new cash flow is the dollar value of new sales minus redemptions combined with net exchanges.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components many not add
to the total because of rounding.
189
TABLE 18
Net New Cash Flow and Components of Net New Cash Flow of Equity Mutual Funds
Millions of dollars, annual
Data Section 3
Sales
Year
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$4,336
6,643
20,386
19,231
-14,948
6,774
12,915
39,888
78,983
127,260
114,525
124,392
216,937
227,106
156,875
187,565
315,711
33,439
-29,326
144,055
171,937
123,967
147,773
73,328
-229,407
-1,952
-24,414
-129,263
-152,680
159,553
25,216
New +
exchange
$28,705
40,608
87,997
139,596
68,827
89,345
104,334
146,618
201,720
307,356
366,659
433,853
674,323
880,286
1,065,197
1,410,846
1,972,208
1,329,827
1,214,146
1,074,175
1,096,540
1,192,654
1,417,077
1,729,376
1,523,295
1,193,638
1,406,727
1,493,184
1,449,651
1,864,283
2,008,774
New2
$16,586
25,046
50,774
65,093
25,641
46,817
62,872
90,192
134,309
213,639
252,887
282,937
442,372
579,064
699,554
918,600
1,320,049
953,619
894,047
837,496
926,961
1,017,225
1,214,420
1,506,720
1,329,565
1,032,077
1,236,968
1,323,049
1,260,222
1,641,164
1,797,539
Redemptions
Exchange3
$12,119
15,562
37,224
74,502
43,186
42,527
41,462
56,427
67,411
93,717
113,772
150,915
231,951
301,222
365,643
492,245
652,159
376,208
320,099
236,679
169,579
175,428
202,658
222,656
193,730
161,560
169,759
170,134
189,428
223,119
211,235
Regular +
exchange
$24,369
33,965
67,612
120,365
83,774
82,571
91,419
106,730
122,738
180,095
252,134
309,461
457,385
653,180
908,322
1,223,281
1,656,497
1,296,387
1,243,471
930,120
924,603
1,068,686
1,269,304
1,656,048
1,752,702
1,195,589
1,431,141
1,622,447
1,602,331
1,704,730
1,983,559
Regular4
$10,669
17,558
26,051
38,601
33,247
37,229
44,487
53,394
61,465
91,944
141,097
170,402
240,531
362,022
534,256
744,145
1,032,153
891,802
875,677
707,565
758,902
878,158
1,047,381
1,389,144
1,479,005
1,015,446
1,239,215
1,418,034
1,382,128
1,496,822
1,773,298
Exchange5
$13,700
16,406
41,561
81,764
50,528
45,342
46,931
53,336
61,272
88,151
111,037
139,059
216,854
291,158
374,065
479,136
624,345
404,586
367,794
222,555
165,701
190,528
221,923
266,905
273,697
180,143
191,926
204,413
220,202
207,908
210,260
1 Net
new cash flow is the dollar value of new sales minus redemptions combined with net exchanges.
sales are the dollar value of new purchases of mutual fund shares. This does not include shares purchased through
reinvestment of dividends in existing accounts.
3 Exchange sales are the dollar value of mutual fund shares switched into funds within the same fund group.
4 Regular redemptions are the dollar value of shareholder liquidation of mutual fund shares.
5 Exchange redemptions are the dollar value of mutual fund shares switched out of funds and into other funds within the same
fund group.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
2 New
190
TABLE 19
Net New Cash Flow and Components of Net New Cash Flow of Hybrid Mutual Funds
Millions of dollars, annual
Sales
Year
$1,801
3,720
6,988
3,748
-3,684
3,183
1,463
7,067
21,725
42,619
21,998
3,738
11,795
15,757
10,265
-13,018
-36,722
7,285
8,043
39,079
53,055
42,754
19,857
40,384
-25,525
19,792
35,295
39,549
44,895
71,293
27,346
New +
exchange
$4,118
7,502
13,535
14,948
6,259
11,139
9,671
16,860
32,772
60,610
58,541
43,024
56,783
68,347
82,691
81,917
70,445
83,546
93,685
115,929
143,463
144,267
146,088
206,415
181,437
174,217
205,353
263,052
264,402
335,250
319,132
New2
$3,842
6,976
12,342
12,419
4,601
9,334
7,989
13,754
26,463
49,526
49,043
35,385
47,436
55,264
67,294
67,617
56,973
65,634
75,664
96,811
125,438
126,616
127,532
183,482
155,076
150,048
181,394
233,463
237,734
298,445
287,626
Exchange3
Regular +
exchange
$276
526
1,194
2,528
1,658
1,805
1,682
3,106
6,309
11,083
9,498
7,640
9,347
13,084
15,397
14,300
13,473
17,912
18,021
19,117
18,025
17,651
18,555
22,933
26,361
24,169
23,959
29,589
26,669
36,805
31,505
$2,318
3,782
6,548
11,200
9,943
7,956
8,208
9,793
11,047
17,990
36,544
39,286
44,988
52,590
72,426
94,934
107,167
76,260
85,642
76,849
90,407
101,513
126,231
166,031
206,962
154,425
170,058
223,502
219,507
263,956
291,785
Regular4
$2,017
3,161
5,162
7,848
7,521
5,780
5,600
7,011
7,209
11,735
25,298
27,807
31,413
38,265
53,353
69,790
77,219
58,850
67,407
63,329
77,520
86,199
106,066
144,066
165,396
127,179
146,387
190,403
194,900
232,905
264,572
Exchange5
$301
621
1,386
3,353
2,422
2,176
2,608
2,782
3,838
6,256
11,245
11,479
13,575
14,325
19,073
25,145
29,948
17,410
18,234
13,520
12,887
15,314
20,165
21,965
41,566
27,246
23,672
33,099
24,607
31,052
27,213
Data Section 3
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Redemptions
1 Net
new cash flow is the dollar value of new sales minus redemptions combined with net exchanges.
sales are the dollar value of new purchases of mutual fund shares. This does not include shares purchased through
reinvestment of dividends in existing accounts.
3 Exchange sales are the dollar value of mutual fund shares switched into funds within the same fund group.
4 Regular redemptions are the dollar value of shareholder liquidation of mutual fund shares.
5 Exchange redemptions are the dollar value of mutual fund shares switched out of funds and into other funds within the same
fund group.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
2 New
191
TABLE 20
Net New Cash Flow and Components of Net New Cash Flow of Bond Mutual Funds
Millions of dollars, annual
Sales
Data Section 3
Year
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
New +
exchange
$25,554
83,359
158,874
123,528
72,174
71,770
80,659
141,674
217,863
262,300
186,908
166,437
203,343
242,309
314,429
299,198
250,918
394,211
515,028
520,683
395,451
402,784
446,377
592,760
709,634
1,006,675
1,089,699
1,103,665
1,246,704
1,307,940
1,278,294
New2
$20,774
74,485
138,240
93,725
47,378
48,602
57,106
108,095
171,991
208,605
131,351
110,451
137,886
176,275
230,934
217,431
187,188
301,477
402,020
428,553
340,549
351,167
391,126
506,964
580,948
856,834
964,459
976,073
1,121,190
1,158,804
1,174,227
Redemptions
Exchange3
$4,780
8,874
20,634
29,803
24,796
23,168
23,552
33,580
45,872
53,696
55,556
55,986
65,457
66,034
83,495
81,767
63,730
92,733
113,009
92,130
54,902
51,617
55,251
85,796
128,686
149,841
125,240
127,592
125,514
149,136
104,068
Regular +
exchange
$12,497
20,232
56,256
116,731
76,662
72,996
73,826
82,416
146,874
190,131
248,270
172,359
200,201
213,143
239,773
303,965
301,033
305,748
373,163
487,934
410,554
377,489
386,929
482,151
679,602
635,437
857,357
985,999
940,478
1,379,112
1,234,766
Regular4
$7,344
13,094
35,776
69,627
51,558
48,517
47,978
56,177
96,628
127,294
162,823
114,686
125,486
140,906
160,071
207,254
220,868
226,197
285,070
376,840
341,466
321,681
329,462
410,366
582,683
525,213
742,628
870,097
838,189
1,190,747
1,137,937
Exchange5
$5,152
7,137
20,480
47,104
25,103
24,480
25,848
26,239
50,246
62,838
85,448
57,673
74,715
72,237
79,702
96,711
80,165
79,551
88,093
111,094
69,088
55,808
57,467
71,785
96,919
110,224
114,729
115,901
102,289
188,366
96,829
1 Net
new cash flow is the dollar value of new sales minus redemptions combined with net exchanges.
sales are the dollar value of new purchases of mutual fund shares. This does not include shares purchased through
reinvestment of dividends in existing accounts.
3 Exchange sales are the dollar value of mutual fund shares switched into funds within the same fund group.
4 Regular redemptions are the dollar value of shareholder liquidation of mutual fund shares.
5 Exchange redemptions are the dollar value of mutual fund shares switched out of funds and into other funds within the same
fund group.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
2 New
192
$262,090
-22,779
-52,387
27,126
-11,497
-25,359
-26,842
-43,061
-47,898
-7,217
-26,594
-44,196
-38,846
-2,834
-40,913
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$58,195
-23,206
-4,451
24,361
71,583
106,918
150,935
141,788
-80,384
25,681
56,730
4,140
6,603
141,489
85,432
World
-$4,574
79,425
27,513
92,569
111,851
42,408
23,680
-25,399
-101,126
-20,416
-54,550
-89,206
-120,437
20,897
-19,303
Total return
-$36,722
7,285
8,043
39,079
53,055
42,754
19,857
40,384
-25,525
19,792
35,295
39,549
44,895
71,293
27,346
Hybrid funds
$5,460
49,253
64,670
31,835
22,382
36,732
36,993
76,108
9,449
202,341
111,385
51,242
106,607
-97,014
9,661
Investment
grade
-$15,376
880
2,953
21,945
-3,045
-13,529
3,044
-4,822
-6,360
22,384
19,335
21,587
34,257
55,633
-44,211
High yield
World
-$4,631
-1,151
-71
4,029
4,310
6,404
10,936
21,132
6,080
32,668
70,076
44,468
41,284
65,723
24,060
-$16,663
24,769
53,048
-22,124
-26,259
-14,211
-17,834
-2,242
20,600
18,950
4,059
3,393
33,743
-51,214
5,752
Government
Bond funds
-$4,439
2,436
4,380
3,903
2,857
5,188
11,204
9,454
-7,554
24,515
15,826
8,593
40,162
14,194
20,280
Multisector
-$5,456
6,293
5,337
-8,309
-7,939
1,232
3,876
3,358
-2,302
6,084
-2,838
-9,890
8,539
-22,420
-1,064
State muni
-$9,010
5,983
11,549
1,471
-7,410
3,480
11,229
7,621
10,119
64,295
14,499
-1,726
41,633
-36,074
29,051
National muni
Note: Net new cash flow is the dollar value of new sales minus redemptions combined with net exchanges. Data for funds that invest primarily in other mutual funds were excluded from the series.
Capital
appreciation
Year
Equity funds
Net New Cash Flow of Long-Term Mutual Funds by Composite Investment Objective
TABLE 21
Data Section 3
193
194
$574,322
306,550
250,056
250,597
268,027
263,542
301,994
368,273
340,076
273,324
309,473
340,702
335,970
396,090
425,776
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$342,511
251,663
245,152
205,236
184,371
239,620
354,878
479,180
372,414
284,154
379,399
397,965
362,512
510,788
542,613
World
$403,217
395,407
398,839
381,662
474,563
514,063
557,548
659,267
617,076
474,600
548,096
584,382
561,740
734,286
829,150
Total return
$56,973
65,634
75,664
96,811
125,438
126,616
127,532
183,482
155,076
150,048
181,394
233,463
237,734
298,445
287,626
Hybrid funds
$79,200
127,711
172,587
186,661
165,644
171,630
183,990
247,214
277,177
426,743
450,179
448,943
490,135
467,429
493,473
Investment
grade
$27,405
36,277
39,665
65,577
48,346
42,226
45,724
55,721
47,425
70,370
96,163
128,890
124,107
172,537
147,595
High yield
World
$8,267
8,948
10,920
18,946
18,132
23,786
29,025
45,546
53,561
69,340
129,602
138,829
131,719
192,004
194,172
$24,359
58,987
93,874
71,167
38,512
32,063
29,690
34,593
64,527
90,702
79,464
72,240
109,826
74,507
70,546
Government
Bond funds
$6,787
12,245
15,446
20,968
18,548
21,172
30,147
39,718
37,711
58,029
71,271
76,873
106,435
116,833
128,592
Multisector
$16,989
25,028
26,360
20,546
16,820
21,959
25,566
29,590
30,562
28,386
28,530
19,797
30,912
23,833
22,423
State muni
$24,180
32,282
43,168
44,688
34,548
38,331
46,985
54,582
69,983
113,264
109,250
90,501
128,058
111,661
117,425
National muni
Note: New sales are the dollar value of new purchases of mutual fund shares. This does not include shares purchased through reinvestment of dividends in existing accounts. Data for funds that invest primarily
in other mutual funds were excluded from the series.
Capital
appreciation
Year
Equity funds
TABLE 22
Data Section 3
$343,618
176,020
144,274
94,572
57,575
55,786
64,336
60,884
58,645
44,893
41,942
48,399
45,112
68,226
61,408
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$169,388
85,824
71,084
41,777
27,630
38,396
56,926
68,791
48,079
47,195
55,916
40,005
47,470
44,073
48,129
World
$139,153
114,364
104,741
100,330
84,373
81,246
81,396
92,981
87,005
69,472
71,901
81,730
96,846
110,820
101,698
Total return
$13,473
17,912
18,021
19,117
18,025
17,651
18,555
22,933
26,361
24,169
23,959
29,589
26,669
36,805
31,505
Hybrid funds
$16,756
32,627
39,454
33,917
23,666
20,833
21,896
41,587
50,417
76,507
58,253
59,218
55,238
52,690
46,085
Investment
grade
$10,298
11,378
11,201
17,110
8,944
7,270
7,295
7,931
7,414
13,182
13,068
14,814
13,407
18,967
12,167
High yield
World
$3,011
2,057
2,373
3,528
2,056
2,780
2,740
4,630
8,506
7,976
9,482
10,801
9,145
26,824
10,140
$15,829
24,779
37,280
18,355
7,023
6,575
5,972
10,226
27,495
18,336
14,513
14,323
14,912
13,320
7,231
Government
Bond funds
$1,662
2,860
3,474
4,713
4,330
4,742
7,027
5,036
10,048
8,641
10,792
10,756
12,957
10,305
9,738
Multisector
$5,304
5,348
5,625
4,288
2,750
2,983
3,450
5,706
7,039
5,161
3,852
3,736
3,685
4,900
3,600
State muni
$10,870
13,686
13,602
10,218
6,135
6,435
6,869
10,680
17,767
20,037
15,280
13,944
16,171
22,131
15,107
National muni
Note: Exchange sales are the dollar value of mutual fund shares switched into funds within the same fund group. Data for funds that invest primarily in other mutual funds were excluded from the series.
Capital
appreciation
Year
Equity funds
TABLE 23
Data Section 3
195
196
$367,939
307,031
276,869
222,877
269,656
274,036
313,742
393,843
375,619
273,761
329,476
377,196
367,669
401,614
465,178
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$288,253
264,414
243,479
183,743
122,228
148,065
223,271
347,697
424,738
258,011
317,314
382,528
354,069
373,695
458,723
World
$375,961
320,356
355,328
300,945
367,018
456,057
510,369
647,604
678,648
483,675
592,425
658,310
660,390
721,514
849,397
Total return
$77,219
58,850
67,407
63,329
77,520
86,199
106,066
144,066
165,396
127,179
146,387
190,403
194,900
232,905
264,572
Hybrid funds
$71,781
87,986
117,197
150,032
141,777
136,146
146,821
186,051
281,433
248,411
347,313
406,914
393,675
529,940
490,685
Investment
grade
$37,560
34,381
36,207
47,355
49,051
52,259
42,462
57,163
51,012
51,338
79,906
108,257
92,111
121,683
186,585
High yield
World
$11,447
9,538
11,383
15,501
13,819
18,358
18,602
26,374
49,556
40,278
62,812
95,480
91,985
140,878
169,917
$35,865
37,939
53,918
79,437
58,824
43,913
43,975
38,850
59,781
69,920
74,239
69,572
77,394
117,158
63,799
Government
Bond funds
$10,431
10,367
12,043
17,372
15,552
16,059
19,707
29,139
45,632
36,083
55,858
69,333
70,412
101,524
110,865
Multisector
$21,877
18,584
20,889
25,700
22,817
20,457
21,692
25,838
32,200
22,762
29,101
28,412
22,815
40,542
23,917
State muni
$31,908
27,401
33,434
41,443
39,625
34,488
36,205
46,949
63,070
56,421
93,398
92,128
89,798
139,022
92,168
National muni
Note: Redemptions are the dollar value of shareholder liquidation of mutual fund shares. Data for funds that invest primarily in other mutual funds were excluded from the series.
Capital
appreciation
Year
Equity funds
TABLE 24
Data Section 3
$287,910
198,317
169,848
95,166
67,443
70,651
79,431
78,376
71,000
51,674
48,533
56,100
52,258
65,536
62,918
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$165,451
96,279
77,208
38,910
18,190
23,033
37,597
58,486
76,138
47,657
61,271
51,303
49,310
39,677
46,588
World
$170,983
109,990
120,738
88,479
80,067
96,844
104,895
130,043
126,558
80,812
82,122
97,009
118,634
102,695
100,754
Total return
$29,948
17,410
18,234
13,520
12,887
15,314
20,165
21,965
41,566
27,246
23,672
33,099
24,607
31,052
27,213
Hybrid funds
$18,715
23,098
30,174
38,711
25,150
19,585
22,073
26,641
36,712
52,499
49,734
50,005
45,090
87,193
39,212
Investment
grade
$15,519
12,393
11,706
13,387
11,284
10,766
7,513
11,311
10,187
9,830
9,990
13,860
11,146
14,188
17,388
High yield
World
$4,463
2,618
1,981
2,945
2,059
1,804
2,227
2,670
6,432
4,371
6,195
9,681
7,594
12,228
10,335
$20,986
21,058
24,188
32,209
12,969
8,936
9,521
8,210
11,642
20,168
15,679
13,597
13,601
21,882
8,225
Government
Bond funds
$2,457
2,301
2,498
4,407
4,468
4,666
6,264
6,161
9,682
6,071
10,379
9,703
8,817
11,420
7,186
Multisector
$5,872
5,499
5,758
7,443
4,692
3,253
3,449
6,099
7,703
4,702
6,119
5,011
3,243
10,611
3,170
State muni
$12,153
12,583
11,787
11,992
8,467
6,798
6,420
10,692
14,562
12,584
16,632
14,043
12,797
30,844
11,313
National muni
Note: Exchange redemptions are the dollar value of mutual fund shares switched out of funds and into other funds within the same fund group. Data for funds that invest primarily in other mutual funds were
excluded from the series.
Capital
appreciation
Year
Equity funds
TABLE 25
Data Section 3
197
TABLE 26
Data Section 3
Total
Equity
funds
Hybrid
funds
Bond
funds
Total
Equity
funds
Hybrid
funds
Bond
funds
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
17.4%
19.8
26.5
20.0
17.9
17.5
16.4
17.0
17.8
21.6
17.4
17.0
17.9
19.7
21.7
25.7
24.0
27.9
24.2
20.4
19.7
19.9
22.9
30.3
24.6
25.3
27.6
25.0
25.8
25.0
18.4%
19.6
23.4
18.2
17.1
18.4
16.6
13.4
14.7
17.7
16.2
16.2
17.7
20.0
21.2
25.9
24.3
29.0
22.5
19.0
19.0
19.5
22.7
29.4
23.9
23.7
26.2
24.8
21.8
22.1
22.0%
23.8
28.5
27.1
18.7
15.6
15.9
11.1
10.7
16.7
15.1
13.8
13.7
15.9
19.0
21.0
16.4
19.4
16.2
15.5
14.7
15.7
18.6
23.9
19.9
18.8
22.1
20.4
20.3
20.2
15.5%
19.6
28.3
20.5
18.4
17.0
16.4
21.5
22.6
28.3
20.3
20.0
20.4
20.5
25.1
26.9
25.7
27.4
31.4
26.7
24.2
23.1
25.8
35.9
27.8
31.0
32.0
26.9
35.7
33.7
29.8%
38.6
56.7
36.9
31.9
31.0
28.1
28.8
29.9
35.2
28.9
30.0
30.5
32.2
34.5
39.9
34.2
38.7
31.5
24.7
23.7
23.9
27.1
35.9
29.3
29.2
31.5
28.6
29.5
27.6
35.6%
50.9
73.0
45.9
38.0
37.7
33.1
26.7
28.7
31.6
29.4
30.7
31.9
34.0
34.9
41.5
35.4
41.2
29.5
23.1
23.2
23.7
27.0
34.9
28.1
27.3
30.0
28.7
24.9
24.7
26.3%
30.2
40.7
35.8
25.7
22.9
22.2
17.0
16.4
24.1
21.3
19.8
18.8
21.6
25.8
29.1
21.2
24.7
19.6
18.1
17.3
18.7
21.4
29.9
24.1
21.8
25.9
23.0
23.0
22.3
24.0%
30.7
47.5
30.4
27.7
26.2
24.1
32.7
33.8
43.1
30.4
32.0
30.9
30.6
36.8
36.7
34.7
35.9
40.6
32.1
28.4
27.1
30.4
41.8
33.6
35.7
36.3
30.2
41.3
36.6
1 Narrow
redemption rate is calculated by taking the sum of regular redemptions for the year as a percentage of average net
assets at the beginning and end of the period.
2 Broad redemption rate is calculated by taking the sum of regular redemptions and exchange redemptions for the year as a
percentage of average net assets at the beginning and end of the period.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
198
TABLE 27
Portfolio Holdings of Long-Term Mutual Funds and Percentage of Total Net Assets
Year-end
Year
Common and
preferred
Long-term U.S.
Total net assets
stocks
government bonds
Corporate
bonds
Municipal
bonds
Liquid
assets
Other
$141,755
151,988
198,826
191,393
219,098
277,164
222,475
208,939
259,641
307,111
303,189
346,768
381,679
296,540
365,787
330,295
461,767
515,396
651,842
725,615
$6,026
5,645
10,866
9,753
5,204
4,008
1,768
1,910
3,038
8,480
12,536
15,956
21,077
21,531
17,411
7,036
-39,692
-26,089
-3,673
-10,086
Millions of dollars
$2,058,275
2,623,994
3,409,315
4,173,531
5,233,193
5,119,386
4,689,603
4,118,402
5,362,460
6,194,101
6,864,553
8,059,704
8,914,408
5,770,655
7,796,729
9,029,066
8,940,472
10,358,707
12,316,444
13,127,081
$1,215,218
1,718,203
2,358,258
3,004,185
4,059,429
3,910,200
3,424,533
2,687,962
3,761,038
4,489,609
5,055,105
6,024,800
6,609,155
3,733,992
5,090,646
5,869,016
5,506,875
6,292,589
8,217,587
8,788,714
$259,107
264,972
282,272
286,592
293,565
309,752
379,740
481,639
504,757
537,297
612,795
644,734
749,427
705,030
849,809
1,084,703
1,185,969
1,380,129
1,208,087
1,223,860
$190,837
238,003
292,770
389,213
388,472
348,928
371,436
417,475
502,000
533,250
549,982
668,282
784,015
676,685
1,021,925
1,258,351
1,318,712
1,603,814
1,730,118
1,831,200
$245,331
245,183
266,324
292,395
267,426
269,334
289,651
320,477
331,986
318,354
330,945
359,163
369,055
336,878
451,151
479,665
506,841
592,868
512,483
567,778
Data Section 3
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Percent
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
100.0%
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
59.0%
65.5
69.2
72.0
77.6
76.4
73.0
65.3
70.1
72.5
73.6
74.8
74.1
64.7
65.3
65.0
61.6
60.7
66.7
67.0
12.6%
10.1
8.3
6.9
5.6
6.1
8.1
11.7
9.4
8.7
8.9
8.0
8.4
12.2
10.9
12.0
13.3
13.3
9.8
9.3
9.3%
9.1
8.6
9.3
7.4
6.8
7.9
10.1
9.4
8.6
8.0
8.3
8.8
11.7
13.1
13.9
14.7
15.5
14.0
13.9
11.9%
9.3
7.8
7.0
5.1
5.3
6.2
7.8
6.2
5.1
4.8
4.5
4.1
5.8
5.8
5.3
5.7
5.7
4.2
4.3
6.9%
5.8
5.8
4.6
4.2
5.4
4.7
5.1
4.8
5.0
4.4
4.3
4.3
5.1
4.7
3.7
5.2
5.0
5.3
5.5
0.3%
0.2
0.3
0.2
0.1
0.1
0.0
0.0
0.1
0.1
0.2
0.2
0.2
0.4
0.2
0.1
-0.4
-0.3
0.0
-0.1
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
199
TABLE 28
Data Section 3
Year
Total net
assets
Common and
preferred
Long-term U.S. Corporate
stocks
government bonds bonds
Total net
assets
Municipal
bonds
Liquid
assets
Other
Millions of
dollars
Equity funds
2000
100.0%
2001
100.0
2002
100.0
2003
100.0
2004
100.0
2005
100.0
2006
100.0
2007
100.0
2008
100.0
2009
100.0
2010
100.0
2011
100.0
2012
100.0
2013
100.0
2014
100.0
93.7%
94.3
94.2
95.0
95.2
95.5
95.6
95.2
93.9
95.8
95.7
95.6
95.6
95.6
95.6
0.1%
0.1
0.4
0.2
0.1
0.1
0.1
0.1
0.2
0.1
0.2
0.3
0.3
0.2
0.2
0.4%
0.5
0.8
0.5
0.4
0.4
0.4
0.4
0.5
0.5
0.5
0.6
0.6
0.6
0.6
0.0%
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
5.7%
5.0
4.6
4.2
4.2
3.9
3.8
4.2
5.1
3.5
3.4
3.5
3.4
3.5
3.5
0.0%
0.0
0.0
0.0
0.1
0.1
0.1
0.2
0.3
0.1
0.1
0.0
0.0
0.0
0.1
$3,934,480
3,392,399
2,642,420
3,653,370
4,342,577
4,885,444
5,832,582
6,413,222
3,637,416
4,872,541
5,596,629
5,212,989
5,938,747
7,762,727
8,314,314
Hybrid funds
2000
100.0%
2001
100.0
2002
100.0
2003
100.0
2004
100.0
2005
100.0
2006
100.0
2007
100.0
2008
100.0
2009
100.0
2010
100.0
2011
100.0
2012
100.0
2013
100.0
2014
100.0
59.1%
59.9
57.4
62.5
63.5
62.6
61.2
60.5
55.4
58.3
60.6
59.3
59.4
61.6
60.1
13.4%
11.9
12.4
10.6
11.0
10.5
10.0
10.3
9.8
9.8
8.8
9.4
8.9
7.9
9.0
19.7%
20.4
22.3
19.7
18.4
19.5
19.5
20.8
24.3
23.4
22.3
22.1
21.1
18.8
19.2
0.3%
0.2
0.2
0.3
0.4
0.4
0.3
0.3
0.4
0.4
0.5
0.5
0.5
0.4
0.5
7.4%
7.5
7.5
6.9
6.6
6.9
8.9
8.0
9.6
7.7
7.3
7.9
9.3
10.7
10.7
0.1%
0.2
0.1
0.0
0.1
0.0
0.1
0.1
0.4
0.5
0.4
0.8
0.8
0.6
0.5
$360,916
358,027
335,276
447,570
552,250
621,479
731,503
821,522
562,262
717,580
841,415
883,056
1,029,257
1,267,329
1,351,839
Bond funds
2000
100.0%
2001
100.0
2002
100.0
2003
100.0
2004
100.0
2005
100.0
2006
100.0
2007
100.0
2008
100.0
2009
100.0
2010
100.0
2011
100.0
2012
100.0
2013
100.0
2014
100.0
1.4%
1.1
0.6
0.8
0.8
0.8
0.8
1.0
0.6
0.8
0.9
0.8
0.9
1.1
1.2
31.1%
35.5
37.6
35.8
36.2
39.6
37.4
38.9
40.8
34.8
38.2
37.8
37.0
32.9
31.3
31.5%
29.9
28.1
31.3
31.7
30.0
33.5
35.0
33.2
37.4
40.0
38.2
39.5
43.7
43.8
32.6%
30.8
28.0
26.2
24.2
23.9
23.6
21.6
21.2
20.1
18.1
17.4
17.1
15.2
16.1
3.1%
2.7
5.5
5.8
6.6
5.1
4.3
3.0
3.6
6.5
3.0
7.4
6.5
7.4
8.4
0.3%
0.0
0.0
0.1
0.4
0.6
0.5
0.6
0.5
0.4
-0.1
-1.7
-1.0
-0.4
-0.7
$823,990
939,177
1,140,707
1,261,520
1,299,274
1,357,630
1,495,619
1,679,664
1,570,978
2,206,609
2,591,022
2,844,428
3,390,704
3,286,388
3,460,928
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
200
TABLE 29
Equity
funds
1984e
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$7,238
12,719
22,689
31,708
31,966
34,102
33,156
35,145
58,608
73,178
61,261
67,229
73,282
79,522
81,011
95,443
88,215
82,967
82,065
85,926
98,131
115,502
143,500
181,014
181,608
168,019
180,988
202,444
215,277
209,357
235,474
$2,613
3,229
6,328
7,246
6,554
10,235
8,787
9,007
17,023
20,230
17,279
22,567
25,061
27,597
25,495
32,543
27,042
21,390
20,472
24,359
34,708
42,413
60,112
77,563
70,086
58,877
62,196
68,706
83,226
84,509
99,578
Hybrid
funds
$583
1,098
1,499
1,934
1,873
2,165
2,350
2,337
4,483
6,810
6,662
8,856
9,580
11,319
11,104
12,441
10,848
10,361
9,740
9,920
12,186
16,691
19,134
25,058
26,032
22,213
23,276
29,024
24,919
24,066
29,768
Bond
funds
Total
Equity
funds
Hybrid
funds
Bond
funds
$4,042
8,392
14,862
22,528
23,539
21,702
22,018
23,801
37,102
46,137
37,320
35,806
38,642
40,606
44,413
50,458
50,325
51,216
51,853
51,648
51,237
56,397
64,254
78,393
85,490
86,930
95,516
104,714
107,131
100,782
106,128
$4,655
7,731
13,991
18,976
17,494
20,584
21,124
24,300
30,393
38,116
39,136
46,635
53,213
58,423
60,041
69,973
66,277
62,306
62,413
66,870
78,253
94,024
119,074
151,777
152,632
140,359
152,329
172,873
187,063
184,380
210,925
$1,881
2,321
3,706
4,841
4,476
7,119
6,721
7,255
8,845
12,174
12,971
18,286
21,345
23,100
22,377
27,332
23,786
19,251
18,560
22,127
31,427
38,435
54,210
69,596
63,166
53,098
56,385
62,460
76,208
78,082
92,461
$432
768
1,087
1,476
1,217
1,383
1,717
1,898
2,923
4,239
4,907
6,792
8,031
9,413
9,328
10,544
9,537
9,270
8,778
8,840
10,668
14,579
16,989
22,092
23,045
19,388
20,670
25,691
22,663
22,007
27,526
$2,342
4,642
9,197
12,659
11,801
12,082
12,686
15,147
18,625
21,703
21,258
21,558
23,837
25,910
28,336
32,096
32,954
33,786
35,076
35,903
36,158
41,011
47,875
60,090
66,421
67,873
75,275
84,722
88,192
84,291
90,938
Data Section 3
Year
Reinvested dividends
Portions of the paid dividend totals for equity, hybrid, and bond funds are estimated; the total is not estimated.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
e
201
TABLE 30
Paid and Reinvested Capital Gains of Long-Term Mutual Funds by Type of Fund
Millions of dollars, annual
Data Section 3
Total
Equity
funds
1984e
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$6,019
4,895
17,661
22,926
6,354
14,766
8,017
13,917
22,089
35,905
29,744
54,271
100,489
182,764
164,989
237,624
325,841
68,626
16,097
14,397
54,741
129,058
256,915
413,641
132,404
15,300
42,950
73,247
100,174
239,003
397,942
$5,247
3,699
13,942
18,603
4,785
12,665
6,833
11,961
17,294
27,705
26,351
50,204
88,212
160,744
138,681
219,484
305,994
60,088
10,538
7,782
41,581
113,167
235,853
377,682
110,883
5,740
15,739
51,455
66,771
201,806
344,483
Hybrid
funds
$553
739
1,240
1,605
620
540
443
861
1,488
3,496
2,399
3,322
10,826
19,080
21,572
16,841
18,645
6,105
907
758
6,600
11,895
18,720
32,163
9,786
771
1,290
5,466
5,552
22,646
40,139
Total
Equity
funds
Hybrid
funds
Bond
funds
$219
457
2,478
2,718
948
1,562
742
1,095
3,306
4,704
993
745
1,451
2,941
4,737
1,299
1,202
2,433
4,651
5,857
6,560
3,995
2,342
3,795
11,735
8,789
25,921
16,326
27,851
14,552
13,320
$5,122
3,751
14,275
17,816
4,769
9,710
5,515
9,303
14,906
25,514
24,864
46,866
87,416
164,916
151,105
206,508
298,429
64,820
14,749
12,956
49,896
117,566
236,465
380,921
123,272
13,994
38,961
68,223
93,812
227,685
380,556
$4,655
3,091
11,851
15,449
3,883
8,744
4,975
8,242
12,233
19,954
22,038
43,550
76,638
145,358
127,473
190,300
279,891
56,965
9,838
7,188
38,074
103,208
217,010
347,633
103,801
5,418
14,785
48,128
62,879
191,985
328,738
$338
398
778
1,056
364
348
255
484
1,130
2,687
2,086
2,832
9,769
17,360
19,698
15,229
17,506
5,790
887
703
6,167
10,955
17,509
30,011
9,064
702
1,199
5,239
5,322
21,954
39,181
$129
261
1,646
1,312
522
617
285
577
1,542
2,872
740
484
1,009
2,198
3,935
979
1,032
2,065
4,024
5,065
5,655
3,403
1,946
3,277
10,407
7,874
22,977
14,855
25,611
13,746
12,637
Portions of the paid capital gains totals for equity, hybrid, and bond funds are estimated; the total is not estimated.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
e
202
203
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Sales
$98,934
186,985
365,087
485,271
421,223
445,453
505,780
608,129
758,476
1,060,359
1,329,329
1,400,702
1,736,884
2,108,981
2,560,074
3,224,301
4,698,192
4,393,114
3,807,392
3,998,766
4,019,273
4,532,166
5,398,108
6,721,251
7,294,533
6,453,779
6,865,622
8,125,258
7,602,772
8,707,219
7,941,490
$20,338
72,511
135,509
45,330
-10,713
26,291
48,940
127,569
190,928
275,155
104,409
149,809
281,370
275,659
301,487
212,878
224,734
295,416
211,578
282,840
290,907
302,208
339,255
377,360
58,518
479,769
468,969
405,643
585,805
518,427
556,185
Net purchases
$56,588
80,719
134,446
198,859
112,742
142,771
166,398
250,289
327,518
506,713
628,668
790,017
1,151,262
1,457,384
1,762,565
2,262,505
3,560,671
2,736,933
2,176,363
2,054,379
2,390,924
2,765,100
3,330,057
3,835,574
3,655,854
2,644,973
2,810,540
3,032,247
2,770,631
3,403,950
3,515,100
Purchases
$50,900
72,577
118,026
176,004
128,815
141,694
146,580
209,276
261,857
380,855
512,346
686,756
927,266
1,268,983
1,597,311
2,088,544
3,330,417
2,609,657
2,141,754
1,884,711
2,198,578
2,610,805
3,172,222
3,733,130
3,715,557
2,543,511
2,751,737
3,032,854
2,825,999
3,221,274
3,440,319
Sales
Common stock
$5,688
8,142
16,421
22,855
-16,073
1,077
19,817
41,013
65,661
125,858
116,321
103,260
223,996
188,401
165,255
173,962
230,254
127,275
34,609
169,667
192,346
154,296
157,835
102,444
-59,703
101,462
58,804
-607
-55,368
182,675
74,781
Net purchases
$62,685
178,777
366,150
331,741
297,767
328,973
388,322
485,409
621,886
828,801
805,071
760,494
866,991
927,255
1,098,997
1,174,674
1,362,255
1,951,597
1,842,606
2,227,227
1,919,256
2,069,274
2,407,306
3,263,037
3,697,197
4,288,575
4,524,051
5,498,653
5,417,946
5,821,697
4,982,575
Purchases
$48,035
114,408
247,062
309,267
292,407
303,759
359,199
398,853
496,619
679,504
816,983
713,946
809,618
839,997
962,764
1,135,757
1,367,775
1,783,456
1,665,638
2,114,054
1,820,695
1,921,362
2,225,886
2,988,121
3,578,976
3,910,268
4,113,885
5,092,403
4,776,773
5,485,945
4,501,170
Sales
Other securities
$14,650
64,369
119,089
22,474
5,359
25,214
29,123
86,556
125,268
149,298
-11,912
46,548
57,373
87,258
136,233
38,917
-5,519
168,141
176,968
113,173
98,561
147,912
181,420
274,916
118,221
378,306
410,166
406,250
641,173
335,752
481,404
Net purchases
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the total because of rounding.
Purchases
$119,273
259,496
500,597
530,601
410,509
471,744
554,720
735,698
949,404
1,335,514
1,433,739
1,550,510
2,018,253
2,384,639
2,861,562
3,437,180
4,922,927
4,688,530
4,018,969
4,281,605
4,310,180
4,834,374
5,737,363
7,098,611
7,353,050
6,933,548
7,334,591
8,530,901
8,188,577
9,225,646
8,497,675
Year
Total portfolio
Total Portfolio, Common Stock, and Other Securities: Purchases, Sales, and Net Purchases by Long-Term Mutual Funds
TABLE 31
Data Section 3
204
$54,933
77,327
129,723
196,902
119,861
148,346
187,592
251,773
339,003
500,206
618,004
785,867
1,116,906
1,421,211
1,723,752
2,232,828
3,515,572
2,707,359
2,140,797
1,965,419
2,278,755
2,671,170
3,231,135
3,760,234
3,628,276
2,749,913
2,828,781
2,914,926
2,639,806
3,178,949
3,301,052
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$49,853
70,685
111,233
175,292
130,821
144,753
169,373
207,947
268,868
382,433
508,394
678,060
896,644
1,223,463
1,557,212
2,049,540
3,258,635
2,593,454
2,112,759
1,822,753
2,110,605
2,524,339
3,063,822
3,658,395
3,698,255
2,676,641
2,828,824
2,943,144
2,696,126
2,993,417
3,191,092
Sales
Total portfolio
$5,080
6,642
18,491
21,611
-10,959
3,593
18,219
43,827
70,135
117,773
109,610
107,807
220,262
197,748
166,540
183,288
256,937
113,905
28,039
142,666
168,150
146,831
167,313
101,838
-69,979
73,273
-44
-28,218
-56,321
185,531
109,960
Net purchases
$49,098
66,762
110,016
170,715
100,888
128,998
151,907
224,117
300,712
451,485
564,380
718,298
1,050,884
1,352,085
1,635,842
2,126,860
3,393,017
2,571,182
2,017,847
1,902,718
2,216,948
2,592,059
3,129,822
3,582,758
3,361,901
2,433,267
2,568,443
2,756,061
2,499,401
3,043,749
3,120,619
Purchases
$44,213
61,599
96,512
150,705
113,635
127,026
133,630
186,785
242,319
345,357
456,708
621,699
832,486
1,166,649
1,475,384
1,941,505
3,144,116
2,464,587
1,999,827
1,758,142
2,053,652
2,452,257
2,966,143
3,490,174
3,426,442
2,339,181
2,532,634
2,785,482
2,571,677
2,877,082
3,033,152
Sales
Common stock
$4,885
5,163
13,504
20,009
-12,747
1,973
18,277
37,333
58,393
106,128
107,672
96,599
218,397
185,436
160,458
185,355
248,902
106,595
18,020
144,576
163,296
139,803
163,679
92,584
-64,540
94,086
35,809
-29,421
-72,276
166,667
87,467
Net purchases
$5,835
10,565
19,708
26,188
18,973
19,348
35,685
27,656
38,291
48,720
53,623
67,569
66,022
69,126
87,909
105,968
122,554
136,177
122,950
62,701
61,807
79,110
101,313
177,476
266,375
316,646
260,338
158,865
140,405
135,200
180,433
Purchases
$5,640
9,086
14,721
24,586
17,186
17,728
35,743
21,162
26,549
37,076
51,686
56,361
64,157
56,814
81,827
108,035
114,519
128,867
112,931
64,611
56,953
72,083
97,679
168,221
271,813
337,459
296,191
157,662
124,449
116,335
157,939
Sales
Other securities
$195
1,479
4,987
1,601
1,788
1,621
-59
6,494
11,742
11,644
1,937
11,208
1,865
12,312
6,082
-2,067
8,035
7,310
10,019
-1,910
4,854
7,028
3,634
9,255
-5,439
-20,813
-35,853
1,203
15,955
18,864
22,493
Net purchases
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the total because of rounding.
Purchases
Year
Total Portfolio, Common Stock, and Other Securities: Purchases, Sales, and Net Purchases by Equity Mutual Funds
TABLE 32
Data Section 3
205
$11,589
19,647
34,746
48,335
28,070
26,747
30,606
41,999
63,564
113,314
134,972
180,638
223,905
255,207
282,651
296,235
308,821
357,557
340,650
360,653
404,955
397,695
408,861
529,061
594,156
477,006
510,872
657,756
716,429
882,473
902,977
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$9,258
14,915
28,007
44,168
31,455
24,864
26,671
33,747
43,131
72,150
110,305
170,864
201,872
234,820
257,096
296,850
335,531
334,161
320,591
312,111
337,219
346,260
381,376
465,049
577,635
443,131
462,374
594,467
655,957
803,240
838,052
Sales
$2,331
4,732
6,739
4,168
-3,384
1,883
3,935
8,252
20,433
41,164
24,667
9,774
22,033
20,387
25,555
-615
-26,711
23,396
20,059
48,542
67,736
51,435
27,485
64,011
16,521
33,876
48,498
63,288
60,471
79,233
64,926
Net purchases
$7,129
13,378
21,894
26,282
10,628
12,459
13,327
18,657
23,965
49,686
54,808
67,616
92,485
98,109
115,703
128,303
158,039
155,235
145,370
137,490
163,795
165,487
191,740
241,633
281,814
200,907
224,173
253,328
250,876
339,260
364,007
Purchases
$5,822
10,513
19,451
23,989
13,833
13,598
11,832
15,435
17,200
30,485
46,429
60,602
88,464
94,976
111,401
138,923
174,998
134,368
129,204
113,785
132,966
150,166
197,120
230,855
273,655
194,826
203,832
228,267
235,393
322,777
379,400
Sales
Common stock
$1,308
2,865
2,443
2,293
-3,205
-1,139
1,494
3,222
6,765
19,201
8,380
7,015
4,021
3,132
4,301
-10,620
-16,960
20,868
16,166
23,706
30,829
15,321
-5,380
10,778
8,159
6,081
20,341
25,061
15,483
16,483
-15,394
Net purchases
$4,459
6,269
12,853
22,053
17,442
14,288
17,279
23,342
39,599
63,628
80,163
113,021
131,420
157,099
166,948
167,932
150,782
202,322
195,280
223,163
241,160
232,208
217,122
287,428
312,342
276,099
286,699
404,428
465,552
543,212
538,971
Purchases
$3,436
4,402
8,556
20,179
17,622
11,266
14,839
18,313
25,931
41,665
63,876
110,262
113,408
139,844
145,694
157,927
160,533
199,794
191,387
198,326
204,253
196,094
184,256
234,194
303,980
248,305
258,542
366,201
420,564
480,463
458,651
Sales
Other securities
$1,023
1,867
4,297
1,874
-179
3,022
2,440
5,029
13,667
21,963
16,287
2,759
18,011
17,255
21,254
10,005
-9,751
2,528
3,893
24,837
36,907
36,114
32,865
53,233
8,363
27,794
28,157
38,227
44,988
62,749
80,320
Net purchases
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the total because of rounding.
Purchases
Year
Total portfolio
Total Portfolio, Common Stock, and Other Securities: Purchases, Sales, and Net Purchases by Hybrid Mutual Funds
TABLE 33
Data Section 3
206
$52,751
162,522
336,127
285,363
262,577
296,651
336,522
441,926
546,837
721,995
680,764
584,006
677,442
708,221
855,159
908,117
1,098,534
1,623,614
1,537,522
1,955,533
1,626,470
1,765,509
2,097,367
2,809,317
3,130,618
3,706,628
3,994,939
4,958,219
4,832,343
5,164,225
4,293,645
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$39,823
101,385
225,848
265,812
258,947
275,836
309,735
366,435
446,476
605,777
710,631
551,779
638,368
650,698
745,767
877,911
1,104,026
1,465,499
1,374,042
1,863,902
1,571,448
1,661,567
1,952,910
2,597,806
3,018,643
3,334,008
3,574,424
4,587,646
4,250,688
4,910,562
3,912,346
Sales
Total portfolio
$12,928
61,137
110,279
19,551
3,630
20,815
26,787
75,490
100,360
116,218
-29,867
32,227
39,075
57,523
109,392
30,205
-5,491
158,115
163,480
91,632
55,022
103,942
144,456
211,511
111,975
372,621
420,515
370,573
581,654
253,663
381,299
Net purchases
$361
579
2,537
1,862
1,226
1,314
1,164
7,514
2,840
5,542
9,479
4,103
7,893
7,190
11,020
7,342
9,615
10,515
13,146
14,171
10,181
7,554
8,496
11,183
12,138
10,798
17,925
22,858
20,354
20,940
30,474
Purchases
$865
465
2,062
1,310
1,347
1,071
1,118
7,056
2,338
5,013
9,210
4,456
6,316
7,358
10,525
8,115
11,303
10,703
12,723
12,785
11,959
8,382
8,960
12,100
15,460
9,503
15,271
19,105
18,929
21,415
27,766
Sales
Common stock
-$504
114
475
553
-121
243
46
458
502
528
269
-353
1,578
-167
496
-773
-1,688
-188
423
1,386
-1,779
-828
-464
-917
-3,321
1,295
2,654
3,752
1,425
-475
2,707
Net purchases
$52,390
161,943
333,590
283,501
261,351
295,337
335,358
434,411
543,997
716,453
671,285
579,903
669,549
701,031
844,139
900,774
1,088,919
1,613,099
1,524,376
1,941,363
1,616,290
1,757,955
2,088,871
2,798,134
3,118,480
3,695,830
3,977,014
4,935,361
4,811,989
5,143,285
4,263,172
Purchases
$38,958
100,919
223,785
264,502
257,600
274,765
308,617
359,379
444,138
600,763
701,421
547,323
632,052
643,340
735,242
869,796
1,092,722
1,454,796
1,361,320
1,851,117
1,559,489
1,653,185
1,943,950
2,585,706
3,003,183
3,324,504
3,559,153
4,568,541
4,231,760
4,889,147
3,884,580
Sales
Other securities
$13,432
61,024
109,805
18,999
3,751
20,572
26,741
75,033
99,858
115,690
-30,136
32,580
37,497
57,691
108,897
30,978
-3,803
158,303
163,057
90,246
56,801
104,770
144,921
212,428
115,297
371,326
417,861
366,820
580,229
254,138
378,592
Net purchases
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the total because of rounding.
Purchases
Year
Total Portfolio, Common Stock, and Other Securities: Purchases, Sales, and Net Purchases by Bond Mutual Funds
TABLE 34
Data Section 3
207
$233,554
243,802
292,152
316,096
337,954
428,093
498,341
542,442
546,194
565,319
611,005
753,018
901,807
1,058,886
1,351,678
1,613,146
1,845,248
2,285,310
2,265,075
2,040,022
1,901,700
2,026,822
2,338,451
3,085,760
3,832,236
3,315,893
2,803,922
2,691,422
2,693,523
2,718,332
2,725,260
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$51,800
55,705
63,736
67,589
61,298
74,685
109,376
138,111
151,043
149,180
148,139
181,494
223,790
254,223
312,907
333,726
367,780
461,631
453,157
410,041
379,706
399,330
426,838
760,389
1,490,208
1,107,035
855,021
970,075
928,749
962,009
1,010,783
$157,951
151,849
164,610
187,087
210,897
283,939
305,189
314,346
300,310
312,701
352,972
449,829
540,146
647,005
854,061
1,079,523
1,243,598
1,564,598
1,535,621
1,339,689
1,209,995
1,291,119
1,542,584
1,857,280
1,848,349
1,809,923
1,618,896
1,429,650
1,477,347
1,485,711
1,453,690
$23,802
36,249
63,806
61,420
65,758
69,470
83,777
89,984
94,841
103,439
109,894
121,695
137,871
157,658
184,711
199,897
233,869
259,081
276,297
290,291
311,999
336,373
369,029
468,092
493,680
398,935
330,006
291,697
287,426
270,612
260,787
Taxexempt
425
460
487
543
610
673
741
820
864
920
963
997
988
1,013
1,026
1,045
1,039
1,015
988
973
944
870
847
805
783
704
652
632
580
555
528
Total
158
151
147
154
159
160
176
211
235
265
276
284
277
279
277
281
275
269
259
251
240
221
215
203
200
180
165
166
158
152
148
173
199
213
235
274
310
329
341
350
362
373
392
392
406
410
423
429
421
418
409
399
372
358
342
334
296
277
265
242
230
217
Taxable
Government
Prime
Number of funds
94
110
127
154
177
203
236
268
279
293
314
321
319
328
339
341
335
325
311
313
305
277
274
260
249
228
210
201
180
173
163
Taxexempt
425
460
487
543
610
673
762
871
914
1,009
1,261
1,380
1,453
1,549
1,627
1,730
1,855
1,948
2,006
2,031
2,053
2,031
2,013
2,015
1,990
1,846
1,781
1,730
1,623
1,571
1,507
Total
158
151
147
154
159
160
183
228
248
286
368
404
413
442
462
488
534
573
581
572
577
570
579
574
584
561
544
544
519
508
512
173
199
213
235
274
310
339
363
368
386
490
549
592
633
675
742
797
832
882
890
900
894
875
873
859
769
737
711
655
633
589
Taxable
Government
Prime
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the total because of rounding.
Total
Year
Taxable
Government
Prime
Millions of dollars
Year-end
94
110
127
154
177
203
240
280
298
337
403
427
448
474
490
500
524
543
543
569
576
567
559
568
547
516
500
475
449
430
406
Taxexempt
Money Market Funds: Total Net Assets, Number of Funds, and Number of Share Classes by Type of Fund
TABLE 35
Data Section 4
208
$901,807
1,058,886
1,351,678
1,613,146
1,845,248
2,285,310
2,265,075
2,040,022
1,901,700
2,026,822
2,338,451
3,085,760
3,832,236
3,315,893
2,803,922
2,691,422
2,693,523
2,718,332
2,725,260
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$223,790
254,223
312,907
333,726
367,780
461,631
453,157
410,041
379,706
399,330
426,838
760,389
1,490,208
1,107,035
855,021
970,075
928,749
962,009
1,010,783
$540,146
647,005
854,061
1,079,523
1,243,598
1,564,598
1,535,621
1,339,689
1,209,995
1,291,119
1,542,584
1,857,280
1,848,349
1,809,923
1,618,896
1,429,650
1,477,347
1,485,711
1,453,690
$137,871
157,658
184,711
199,897
233,869
259,081
276,297
290,291
311,999
336,373
369,029
468,092
493,680
398,935
330,006
291,697
287,426
270,612
260,787
Taxexempt
$592,604
663,408
835,255
964,686
1,061,605
1,134,703
1,064,418
938,413
852,502
875,933
1,007,853
1,225,493
1,369,819
1,079,959
957,871
949,892
948,575
936,136
905,123
Total
$94,786
100,991
121,664
132,915
151,837
169,883
157,011
141,248
126,473
126,244
140,483
185,526
289,731
214,478
189,694
203,677
205,513
205,056
199,533
$387,705
439,670
571,465
675,986
731,051
775,335
715,383
606,553
534,234
546,283
643,327
754,378
776,876
630,098
562,203
549,764
540,086
534,818
515,587
Taxable
Government
Prime
$110,113
122,747
142,126
155,785
178,716
189,484
192,025
190,612
191,794
203,406
224,043
285,590
303,212
235,383
205,975
196,451
202,975
196,262
190,003
Taxexempt
$309,203
395,478
516,423
648,460
783,644
1,150,607
1,200,657
1,101,608
1,049,199
1,150,888
1,330,598
1,860,267
2,462,417
2,235,935
1,846,051
1,741,530
1,744,948
1,782,197
1,820,137
Total
$129,003
153,232
191,243
200,812
215,943
291,748
296,146
268,793
253,233
273,085
286,354
574,863
1,200,476
892,556
665,327
766,398
723,236
756,954
811,250
$152,441
207,334
282,596
403,537
512,547
789,263
820,238
733,136
675,761
744,836
899,258
1,102,902
1,071,474
1,179,825
1,056,693
879,885
937,261
950,893
938,103
Taxable
Government
Prime
$27,758
34,911
42,585
44,111
55,154
69,597
84,272
99,679
120,205
132,968
144,986
182,503
190,467
163,553
124,031
95,247
84,451
74,350
70,784
Taxexempt
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the total because of rounding.
Total
Year
TABLE 36
Data Section 4
$89,422
103,466
235,457
193,681
159,365
375,291
-45,937
-263,403
-156,744
62,085
245,162
654,412
637,155
-539,150
-524,658
-123,961
-336
15,207
6,338
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$20,572
20,129
45,178
8,486
14,412
86,621
-11,131
-50,998
-36,125
13,182
19,615
319,240
697,443
-414,948
-253,927
107,294
-43,343
29,348
48,232
$58,935
69,107
167,909
174,957
118,354
267,329
-51,060
-222,179
-139,213
28,009
200,115
251,219
-73,523
-28,571
-201,359
-192,601
46,937
2,643
-31,787
$9,915
14,231
22,370
10,238
26,599
21,340
16,254
9,774
18,593
20,895
25,432
83,953
13,235
-95,631
-69,372
-38,654
-3,930
-16,784
-10,107
Taxexempt
$52,886
46,620
130,992
82,006
43,572
36,328
-80,175
-151,113
-88,679
2,494
96,345
172,550
114,112
-308,374
-124,114
-1,304
-1,145
-12,192
-30,511
Total
$6,181
4,781
15,835
-757
504
13,579
-10,174
-20,609
-15,871
-3,652
9,317
38,769
98,267
-104,057
-25,964
20,461
-781
-1,143
-5,843
$39,505
32,081
100,428
72,935
24,413
12,706
-71,329
-125,596
-75,241
-4,645
70,870
83,156
2,082
-136,412
-69,745
-12,500
-7,552
-4,257
-18,182
Taxable
Government
Prime
$7,200
9,758
14,728
9,827
18,655
10,043
1,328
-4,908
2,433
10,791
16,157
50,624
13,763
-67,906
-28,404
-9,265
7,187
-6,792
-6,486
Taxexempt
$36,536
56,846
104,465
111,675
115,793
338,963
34,238
-112,290
-68,065
59,591
148,818
481,862
523,043
-230,776
-400,544
-122,657
809
27,399
36,849
Total
$14,391
15,347
29,343
9,243
13,908
73,043
-957
-30,389
-20,254
16,834
10,297
280,471
599,176
-310,892
-227,962
86,833
-42,563
30,491
54,075
$19,430
37,026
67,481
102,021
93,941
254,623
20,269
-96,583
-63,971
32,654
129,245
168,062
-75,605
107,841
-131,613
-180,101
54,489
6,900
-13,604
Taxable
Government
Prime
$2,715
4,473
7,642
411
7,944
11,297
14,925
14,682
16,160
10,103
9,276
33,329
-528
-27,725
-40,968
-29,389
-11,117
-9,993
-3,621
Taxexempt
*
Net new cash flow is the dollar value of new sales minus redemptions combined with net exchanges.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the total because of rounding.
Total
Year
TABLE 37
Data Section 4
209
TABLE 38
Net New Cash Flow and Components of Net New Cash Flow of Money Market Funds
Millions of dollars, annual
Data Section 4
Sales
Year
Net new
cash flow1
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$35,077
-5,293
33,552
10,072
106
64,132
23,179
6,068
-16,006
-13,890
8,525
89,381
89,422
103,466
235,457
193,681
159,365
375,291
-45,937
-263,403
-156,744
62,085
245,162
654,412
637,155
-539,150
-524,658
-123,961
-336
15,207
6,338
Redemptions
New +
exchange
New2
Exchange3
$640,021
848,451
1,026,745
1,147,877
1,130,639
1,359,616
1,461,537
1,841,131
2,449,766
2,756,282
2,725,201
3,234,216
4,156,985
5,127,328
6,407,574
8,080,959
9,826,677
11,737,291
12,008,801
11,177,118
10,874,608
12,493,636
15,706,879
21,314,339
24,452,430
18,683,752
15,771,387
15,248,942
14,292,019
14,977,938
15,318,896
$620,536
826,858
978,041
1,049,034
1,066,003
1,296,458
1,389,439
1,778,491
2,371,925
2,665,987
2,586,478
3,097,225
3,959,014
4,894,226
6,129,140
7,719,310
9,406,287
11,426,804
11,712,587
10,952,544
10,708,117
12,317,491
15,495,624
21,039,253
24,067,371
18,489,354
15,670,167
15,128,198
14,211,602
14,869,310
15,240,222
$19,485
21,592
48,704
98,843
64,636
63,158
72,098
62,640
77,841
90,295
138,722
136,990
197,971
233,102
278,434
361,649
420,391
310,487
296,215
224,574
166,492
176,145
211,255
275,086
385,059
194,399
101,220
120,744
80,417
108,629
78,674
Regular +
exchange
$604,944
853,743
993,193
1,137,805
1,130,534
1,295,484
1,438,358
1,835,063
2,465,772
2,770,172
2,716,675
3,144,834
4,067,563
5,023,863
6,172,116
7,887,278
9,667,312
11,362,000
12,054,738
11,440,521
11,031,353
12,431,551
15,461,717
20,659,927
23,815,275
19,222,902
16,296,045
15,372,904
14,292,356
14,962,732
15,312,557
Regular4
$586,990
831,067
948,656
1,062,671
1,074,346
1,235,527
1,372,764
1,763,106
2,382,976
2,673,464
2,599,400
3,001,968
3,868,772
4,783,096
5,901,590
7,540,912
9,256,350
11,065,468
11,783,209
11,213,929
10,861,076
12,260,771
15,269,074
20,408,620
23,498,612
19,012,387
16,191,487
15,259,802
14,205,334
14,858,963
15,213,502
Exchange5
$17,953
22,676
44,537
75,133
56,188
59,957
65,594
71,957
82,796
96,707
117,275
142,866
198,791
240,767
270,526
346,367
410,962
296,533
271,530
226,592
170,277
170,779
192,643
251,307
316,663
210,516
104,558
113,102
87,021
103,769
99,055
1 Net
new cash flow is the dollar value of new sales minus redemptions combined with net exchanges.
sales are the dollar value of new purchases of mutual fund shares. This does not include shares purchased through
reinvestment of dividends in existing accounts.
3 Exchange sales are the dollar value of mutual fund shares switched into funds within the same fund group.
4 Regular redemptions are the dollar value of shareholder liquidation of mutual fund shares.
5 Exchange redemptions are the dollar value of mutual fund shares switched out of funds and into other funds within the same
fund group.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the
total because of rounding.
2 New
210
TABLE 39
Total
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$16,435
15,708
14,832
15,654
21,618
28,619
30,258
28,604
20,280
18,991
23,737
37,038
42,555
48,843
57,375
69,004
98,219
79,307
32,251
17,041
18,390
50,186
96,423
127,907
93,857
18,619
7,161
5,237
6,618
8,020
7,565
$15,435
14,108
12,432
12,833
17,976
24,683
26,448
25,121
17,197
15,690
20,504
32,855
38,446
44,185
52,164
63,229
90,158
73,361
29,397
15,124
15,899
43,547
85,018
113,177
82,727
16,590
6,708
4,888
6,345
7,794
7,323
Tax-exempt
money market
funds
Total
Taxable
money market
funds
$1,000
1,600
2,400
2,821
3,642
3,936
3,810
3,483
3,083
3,302
3,233
4,183
4,108
4,658
5,211
5,775
8,061
5,946
2,854
1,917
2,491
6,638
11,405
14,730
11,130
2,030
453
349
273
226
242
$13,730
12,758
11,514
11,946
15,692
23,050
26,282
22,809
14,596
11,615
16,739
27,985
31,516
37,979
43,443
50,648
72,771
56,367
22,033
11,314
11,889
32,803
61,488
82,457
61,134
11,035
4,447
3,261
4,212
5,206
5,000
$13,061
11,760
9,981
10,136
13,355
20,294
23,226
19,998
12,567
10,007
14,626
24,873
28,448
34,425
39,580
46,602
66,890
51,949
19,940
9,916
10,080
27,951
53,268
71,938
53,455
9,999
4,196
3,074
4,068
5,089
4,876
Tax-exempt
money market
funds
$669
998
1,533
1,810
2,337
2,756
3,056
2,811
2,029
1,607
2,113
3,111
3,068
3,554
3,863
4,046
5,881
4,418
2,093
1,398
1,809
4,852
8,220
10,519
7,680
1,037
252
187
144
117
124
Data Section 4
Year
Taxable
money market
funds
Reinvested dividends
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
211
212
U.S.
Treasury
bills
21.0%
23.9
22.8
4.6
5.0
5.0
11.1
21.5
26.0
30.3
24.4
19.8
17.7
15.2
14.3
17.1
14.2
19.2
20.5
20.0
21.4
15.8
14.9
16.3
30.5
25.6
22.9
23.2
25.6
27.1
21.2
Other
Treasury
securities
7.5%
4.9
7.9
11.2
9.7
6.9
12.2
16.5
16.5
14.1
12.6
13.9
18.5
17.6
17.7
13.0
10.1
9.2
6.4
7.2
4.9
4.4
4.1
5.1
6.2
6.0
8.5
13.2
12.6
14.3
13.5
U.S. government
agency
Repurchase Certificates of
Commercial
issues
agreements
deposit
Eurodollar CDs
paper
20.4%
33.9%
4.3%
4.3%
7.3%
15.9
38.2
2.9
6.3
6.2
14.4
39.1
4.1
4.9
4.3
22.0
44.9
4.8
7.4
4.0
20.5
58.4
1.2
0.1
3.2
20.6
62.7
0.2
0.1
3.0
20.6
45.7
0.0
0.0
0.3
20.3
40.9
0.0
0.0
0.4
21.6
34.7
0.0
0.0
0.5
20.7
32.8
0.0
0.0
0.3
26.3
34.0
0.0
0.0
0.4
28.5
34.1
0.0
0.0
0.5
25.4
35.2
0.0
0.1
0.7
25.1
37.8
0.1
0.0
1.2
30.4
33.4
0.3
0.0
1.7
37.1
28.2
0.1
0.0
1.4
32.0
37.9
0.0
0.0
1.6
34.5
31.7
0.2
0.0
0.5
33.2
35.5
0.1
0.0
0.5
33.8
36.3
0.3
0.0
0.9
34.5
35.9
0.2
0.0
0.9
28.1
50.0
0.0
0.0
0.2
21.5
58.6
0.1
0.0
0.5
24.1
53.7
0.3
0.0
0.2
36.2
26.8
0.0
0.0
0.1
35.4
30.6
0.0
0.0
1.0
33.3
33.0
0.0
0.0
0.9
28.9
31.6
0.0
0.0
1.0
26.7
33.0
0.0
0.0
0.7
29.4
27.9
0.0
0.0
0.3
31.3
34.7
0.1
0.0
0.5
Corporate
notes2
0.2%
1.1
1.2
1.5
1.7
1.8
0.8
0.8
0.1
0.0
0.2
0.3
0.4
0.4
0.1
0.1
0.1
Bank
notes1
0.0%
0.0
0.0
0.1
0.1
0.1
0.1
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.1
0.2
0.1
0.1
0.0
0.0
0.0
Other
assets3
1.3%
1.6
2.5
1.1
2.0
1.5
9.9
0.3
0.6
1.8
2.2
3.1
2.4
2.9
2.0
1.9
2.9
3.3
2.1
-0.3
1.2
0.5
0.3
0.2
-0.1
0.7
0.9
1.5
1.4
0.8
-1.2
46
44
51
35
28
31
46
58
55
61
37
48
49
50
52
48
45
55
52
52
36
27
32
31
48
47
47
45
46
48
44
Days
Average
maturity
2
Prior to 1998,
$51,800
55,705
63,736
67,589
61,298
74,685
109,376
138,111
151,043
149,180
148,139
181,494
223,790
254,223
312,907
333,726
367,780
461,631
453,157
410,041
379,706
399,330
426,838
760,389
1,490,208
1,107,035
855,021
970,075
928,749
962,009
1,010,783
Millions of dollars
1
Prior to 1994,
Year
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Year-end
Asset Composition of Taxable Government Money Market Funds as a Percentage of Total Net Assets
TABLE 40
Data Section 4
213
U.S.
Treasury
bills
5.9%
4.6
3.6
1.0
1.0
1.3
4.4
5.7
2.7
2.6
2.4
1.4
0.5
0.4
0.4
0.3
0.3
0.4
1.3
1.4
0.3
0.6
0.1
0.8
1.9
2.3
2.7
3.1
3.4
2.2
2.1
Other
Treasury
securities
0.8%
1.0
1.6
0.9
0.2
0.8
2.2
2.9
2.5
2.4
1.3
0.9
1.6
0.5
0.8
0.3
0.1
0.3
0.3
0.3
0.1
0.1
0.2
0.2
0.5
1.3
1.9
3.8
4.2
4.3
2.6
U.S. government
agency
Repurchase Certificates of
Commercial
issues
agreements
deposit
Eurodollar CDs
paper
4.1%
3.3%
13.6%
12.0%
47.2%
6.1
3.1
10.0
10.2
55.4
3.6
4.4
10.0
11.6
56.0
6.5
4.8
16.2
8.9
52.3
2.8
2.8
15.2
14.1
54.6
2.0
2.8
14.4
9.3
62.3
4.7
2.9
6.9
8.9
65.5
3.7
10.6
6.9
60.1
4.2
7.5
4.9
10.4
6.9
57.7
11.9
5.9
8.0
3.2
52.6
11.4
5.6
6.4
4.5
53.4
9.2
6.2
8.9
4.5
52.5
9.0
5.1
12.8
4.3
51.0
5.4
5.3
14.7
3.7
52.0
9.6
4.6
13.0
3.6
48.7
6.8
4.8
12.8
3.9
49.2
5.9
3.9
11.7
6.6
50.9
12.3
6.0
14.9
7.3
41.7
11.8
8.1
13.8
7.0
40.1
14.9
8.1
11.6
5.1
35.6
12.0
8.5
14.1
5.7
33.9
4.1
11.8
14.5
6.0
38.5
2.9
9.9
13.9
4.4
39.6
3.1
11.3
15.2
5.5
36.9
12.7
8.4
21.5
4.7
34.1
8.9
8.3
31.6
5.5
28.1
7.8
12.8
28.6
6.7
24.3
9.2
13.6
28.4
3.1
24.6
6.9
16.8
29.5
3.0
23.1
5.7
15.7
33.3
2.3
23.9
5.1
20.9
35.7
1.7
23.0
Bank
notes1
2.4%
3.7
2.3
3.2
3.9
3.1
3.6
1.5
1.4
2.0
2.6
2.3
2.2
4.0
3.1
2.9
3.2
2.6
3.5
2.7
1.6
Corporate
notes2
5.8%
8.4
10.5
11.1
12.0
16.2
17.9
17.9
21.6
16.7
9.3
6.4
6.2
4.5
3.5
4.2
3.9
Other
assets3
13.1%
9.5
9.3
9.4
9.4
7.1
4.7
5.8
7.4
13.3
12.7
12.7
13.5
14.8
9.6
10.4
6.5
4.5
4.2
4.6
4.9
4.0
5.2
6.3
3.8
4.8
5.8
7.1
6.1
5.7
3.5
42
42
42
34
32
43
48
56
59
58
38
60
56
57
58
49
53
58
54
59
41
38
49
44
47
50
44
40
45
46
44
Days
Average
maturity
2
Prior to 1998,
$157,951
151,849
164,610
187,087
210,897
283,939
305,189
314,346
300,310
312,701
352,972
449,829
540,146
647,005
854,061
1,079,523
1,243,598
1,564,598
1,535,621
1,339,689
1,209,995
1,291,119
1,542,584
1,857,280
1,848,349
1,809,923
1,618,896
1,429,650
1,477,347
1,485,711
1,453,690
Millions of dollars
1
Prior to 1994,
Year
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Year-end
Asset Composition of Taxable Prime Money Market Funds as a Percentage of Total Net Assets
TABLE 41
Data Section 4
TABLE 42
Alternative Strategies Mutual Funds: Total Net Assets, Net New Cash Flow, Number
of Funds, and Number of Share Classes
Equity funds
Total
World
Multisector
bond funds
Total
$41,504
31,276
58,317
91,271
104,023
127,507
168,474
170,297
$20,343
17,097
24,432
32,620
33,729
41,045
50,193
58,766
$1,149 $18,619
431 12,574
3,355 28,892
1,776 55,078
3,987 64,171
3,897 80,421
6,666 109,753
7,920 101,323
$1,392
1,174
1,638
1,796
2,136
2,145
1,862
2,288
-$780
-1,239
21,025
23,192
12,423
11,223
35,358
6,785
16
22
24
24
39
35
42
52
21
27
34
52
79
111
128
157
Multisector
bond funds
$445
-1,013
7,241
7,295
-3,747
6,088
9,804
6,959
-$47
-446
2,572
726
954
822
2,054
1,298
-$632
208
10,789
14,930
14,795
4,358
23,384
-1,595
-$546
12
424
241
420
-46
116
123
Year-end
18
17
18
20
23
23
23
26
426
499
507
611
743
838
925
1,114
296
320
300
330
350
361
366
408
35
58
65
72
103
85
104
145
54
80
98
157
238
340
407
497
41
41
44
52
52
52
48
64
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
Data Section 5
Data Section 4
126
138
132
139
149
154
153
167
Hybrid
funds
Year-end
181
204
208
235
290
323
346
402
World
Number of funds
2007
2008
2009
2010
2011
2012
2013
2014
Domestic
Year
2007
2008
2009
2010
2011
2012
2013
2014
Domestic
Equity funds
Hybrid
funds
214
TABLE 43
Emerging Markets Debt Mutual Funds: Total Net Assets, Net New Cash Flow,
Number of Funds, and Number of Share Classes
Total net
assets
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Millions of dollars,
year-end
$2,442
2,129
2,585
4,297
5,543
7,408
12,747
16,751
13,459
19,496
37,553
44,702
74,940
64,389
58,649
Net new
cash flow
Millions of dollars,
annual
-$288
-412
311
691
635
1,197
2,180
2,278
264
1,947
14,838
12,598
19,868
-4,627
-5,589
Number of
funds
Number of
share classes
23
24
22
19
19
17
22
27
30
32
35
47
65
87
102
48
50
46
43
43
39
57
76
93
99
121
160
212
286
346
Year-end
Year-end
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
Data Section 5
215
TABLE 44
Floating-Rate High-Yield Bond Mutual Funds: Total Net Assets, Net New Cash
Flow, Number of Funds, and Number of Share Classes
Total net
assets
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Millions of dollars,
year-end
$23,791
19,718
13,392
14,968
24,032
27,485
33,619
33,667
17,128
28,330
47,109
59,877
76,619
140,898
118,254
Net new
cash flow
Millions of dollars,
annual
-$2,626
-5,114
-5,792
-310
7,449
2,195
5,445
-2,448
-8,169
4,362
15,041
10,158
10,625
59,580
-22,232
Number of
funds
Number of
share classes
16
23
22
20
23
25
23
29
31
31
32
38
41
51
52
30
56
52
49
62
73
84
103
126
122
127
156
169
199
203
Year-end
Year-end
Data Section 5
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
216
217
$1,426
2,313
3,722
5,403
6,170
9,063
13,404
21,480
35,368
48,310
56,911
63,385
68,960
123,029
199,197
305,749
469,377
638,073
487,081
680,121
915,527
1,036,776
1,274,179
1,576,174
1,718,109
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$211
403
651
900
1,367
2,288
4,596
7,580
12,212
18,676
11,919
11,159
10,311
19,367
27,729
41,279
70,897
96,660
60,606
55,266
80,580
80,699
93,075
128,782
128,178
Equity
$1,215
1,910
3,072
4,503
4,803
6,774
8,808
13,900
23,156
29,634
44,992
52,226
58,649
103,662
171,468
264,470
398,480
541,413
426,475
624,856
834,947
956,076
1,181,104
1,447,392
1,589,931
Hybrid and
bond
$131
475
1,134
1,160
567
1,135
2,457
3,380
6,376
6,572
10,401
8,929
11,593
29,859
50,481
79,550
101,347
126,407
61,333
70,430
118,692
119,783
95,138
112,166
70,242
Total
-$21
97
205
154
342
633
1,572
1,617
2,006
3,392
3,146
1,313
1,532
3,006
5,260
5,885
13,782
17,276
6,565
4,407
4,964
3,011
-2,651
12,621
11,712
Equity
2 Net
$152
378
929
1,006
225
502
885
1,763
4,370
3,180
7,255
7,617
10,061
26,853
45,222
73,665
87,565
109,131
54,768
66,022
113,727
116,772
97,789
99,545
58,530
Hybrid and
bond
Funds of funds are mutual funds that invest primarily in other mutual funds.
new cash flow is the dollar value of new sales minus redemptions combined with net exchanges.
Note: Components may not add to the total because of rounding.
Total
Year
20
20
21
24
32
36
45
94
175
212
215
213
268
299
372
472
598
704
840
945
981
1,086
1,156
1,261
1,337
Total
11
10
10
12
15
19
24
41
75
83
58
58
68
70
69
90
119
124
124
131
147
158
164
174
176
Equity
Year-end
Number of funds
9
10
11
12
17
17
21
53
100
129
157
155
200
229
303
382
479
580
716
814
834
928
992
1,087
1,161
Hybrid and
bond
Funds of Funds:1 Total Net Assets, Net New Cash Flow, Number of Funds, and Number of Share Classes
TABLE 45
Data Section 5
20
20
21
24
32
37
56
148
305
394
414
450
625
716
957
1,292
1,849
2,331
2,784
3,051
3,141
3,408
3,739
4,007
4,241
Total
11
10
10
12
15
19
28
58
112
137
95
94
118
118
126
185
258
295
313
325
348
362
410
417
421
Equity
Year-end
9
10
11
12
17
18
28
90
193
257
319
356
507
598
831
1,107
1,591
2,036
2,471
2,726
2,793
3,046
3,329
3,590
3,820
Hybrid and
bond
218
$416
772
1,617
1,953
1,781
2,362
4,522
6,317
12,931
16,749
24,092
22,577
28,193
46,920
76,677
122,744
163,033
226,977
214,276
191,303
290,912
351,447
332,877
405,472
411,451
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$68
192
371
358
583
987
2,321
2,858
4,398
6,861
5,493
3,914
4,937
5,914
9,285
11,395
22,354
33,410
28,503
20,580
21,531
20,730
18,465
33,319
34,778
$348
580
1,246
1,594
1,197
1,376
2,201
3,459
8,532
9,888
18,599
18,663
23,256
41,006
67,392
111,349
140,679
193,567
185,773
170,723
269,381
330,717
314,412
372,153
376,673
Hybrid
Equity and bond
$351
579
1,255
1,533
1,341
1,750
3,621
4,753
9,938
12,759
18,607
17,606
23,063
38,405
63,004
105,973
138,808
193,640
183,379
171,942
265,675
323,708
306,877
365,407
370,859
Total
$58
142
294
293
389
692
1,847
2,017
3,578
5,575
4,493
3,255
4,149
4,824
7,409
9,035
17,618
26,126
22,942
18,819
20,330
19,619
17,100
30,718
32,838
$293
437
961
1,240
952
1,059
1,774
2,736
6,360
7,184
14,114
14,350
18,914
33,582
55,595
96,938
121,190
167,515
160,436
153,123
245,345
304,089
289,777
334,690
338,021
Hybrid
Equity and bond
New3
Sales
$65
194
362
419
439
612
901
1,565
2,993
3,990
5,485
4,971
5,131
8,515
13,674
16,771
24,225
33,336
30,898
19,361
25,237
27,739
26,001
40,064
40,592
Total
$10
50
76
65
194
295
474
842
821
1,287
1,000
659
789
1,090
1,876
2,360
4,736
7,284
5,561
1,761
1,201
1,112
1,366
2,601
1,940
$55
143
286
354
245
317
428
723
2,172
2,703
4,485
4,312
4,342
7,425
11,798
14,411
19,489
26,052
25,337
17,600
24,036
26,628
24,635
37,463
38,652
Hybrid
Equity and bond
Exchange4
$285
298
483
793
1,213
1,227
2,066
2,937
6,554
10,177
13,690
13,647
16,600
17,062
26,196
43,194
61,686
100,569
152,943
120,873
172,220
231,664
237,740
293,306
341,209
Total
$89
95
166
205
241
354
749
1,241
2,392
3,469
2,347
2,601
3,405
2,909
4,026
5,510
8,572
16,134
21,938
16,173
16,567
17,720
21,116
20,698
23,066
$196
203
318
588
972
873
1,317
1,696
4,162
6,708
11,344
11,046
13,195
14,153
22,171
37,684
53,114
84,435
131,006
104,701
155,654
213,944
216,623
272,608
318,143
Hybrid
Equity and bond
Regular + exchange
$186
185
303
453
682
768
1,290
1,749
3,766
6,638
9,250
9,546
12,209
12,785
19,742
35,168
48,972
81,898
121,202
102,405
150,225
203,556
212,535
260,259
290,083
Total
$87
79
130
156
166
233
519
774
1,541
2,553
1,925
2,018
2,875
2,452
3,459
4,747
7,182
13,073
17,386
14,549
15,167
16,237
19,615
19,202
21,686
$99
105
174
297
517
535
771
975
2,225
4,084
7,325
7,528
9,335
10,333
16,283
30,420
41,790
68,825
103,816
87,855
135,058
187,319
192,920
241,057
268,397
Hybrid
Equity and bond
Regular5
Redemptions
2 Net
Total
$100
113
180
340
531
459
776
1,189
2,788
3,540
4,440
4,101
4,391
4,277
6,455
8,027
12,714
18,671
31,741
18,469
21,995
28,108
25,205
33,046
51,126
Funds of funds are mutual funds that invest primarily in other mutual funds.
new cash flow is the dollar value of new sales minus redemptions combined with net exchanges.
3 New sales are the dollar value of new purchases of mutual fund shares. This does not include shares purchased through reinvestment of dividends in existing accounts.
4 Exchange sales are the dollar value of mutual fund shares switched into funds within the same fund group.
5 Regular redemptions are the dollar value of shareholder liquidation of mutual fund shares.
6 Exchange redemptions are the dollar value of mutual fund shares switched out of funds and into other funds within the same fund group.
Note: Components may not add to the total because of rounding.
Total
Year
New + exchange
TABLE 46
Data Section 5
$3
16
36
49
75
121
230
468
850
916
421
583
530
456
567
763
1,390
3,061
4,552
1,623
1,400
1,482
1,501
1,496
1,380
$97
97
144
291
456
338
546
721
1,938
2,624
4,019
3,518
3,861
3,820
5,888
7,264
11,324
15,610
27,189
16,845
20,596
26,625
23,704
31,551
49,746
Hybrid
Equity and bond
Exchange6
$27,805
32,573
57,042
97,759
170,302
264,998
387,411
384,039
370,560
327,417
455,293
554,044
618,699
747,491
854,715
601,728
835,422
1,016,713
1,093,749
1,311,077
1,733,629
2,052,963
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$19,790
22,752
41,744
73,856
129,857
201,791
284,588
272,462
249,452
200,989
273,691
317,826
334,012
379,765
394,593
252,956
328,647
375,949
376,582
429,698
574,380
669,483
S&P 500
World
Hybrid
and bond
Total
S&P 500
$3,338
3,863
6,442
11,241
21,221
35,051
63,386
72,009
73,598
69,426
112,480
147,819
171,377
218,166
257,850
177,975
256,365
325,276
357,624
439,633
638,869
767,596
$1,281
2,095
2,846
4,124
5,329
7,962
13,130
12,644
11,128
11,050
18,218
28,236
42,792
66,647
95,695
50,125
92,507
122,751
121,445
161,212
215,545
242,924
$3,396
3,863
6,009
8,538
13,894
20,193
26,307
26,923
36,381
45,952
50,903
60,163
70,518
82,913
106,577
120,672
157,903
192,736
238,098
280,534
304,835
372,959
$6,428
3,348
11,815
24,780
34,847
46,143
61,603
25,592
26,735
25,255
35,234
40,130
27,877
32,974
61,145
34,927
55,976
57,560
54,828
59,043
114,376
148,386
$3,994
1,871
8,820
18,447
25,208
30,977
38,063
10,783
9,113
4,818
14,231
11,739
-317
-5,908
-1,440
7,666
8,195
-808
-6,868
-7,139
5,541
12,567
$953
515
1,038
3,192
5,230
8,499
16,102
10,668
8,859
12,152
16,538
16,078
11,731
20,134
29,192
23,337
16,646
15,024
24,600
22,134
46,541
48,325
Other
domestic
Equity
Other
domestic
Equity
Annual
Year-end
$501
436
512
1,033
818
1,568
2,241
1,664
1,181
1,669
2,199
5,661
8,456
10,674
16,915
-6,000
4,000
19,076
17,202
15,523
28,309
38,403
World
* Net new cash flow is the dollar value of new sales minus redemptions combined with net exchanges.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the total because of rounding.
Total
Year
Millions of dollars
Index Mutual Funds: Total Net Assets and Net New Cash Flow
TABLE 47
Data Section 5
219
$980
525
1,446
2,108
3,591
5,099
5,197
2,477
7,582
6,616
2,266
6,651
8,007
8,074
16,478
9,924
27,135
24,268
19,895
28,525
33,984
49,091
Hybrid
and bond
220
70
82
87
105
132
156
197
271
286
313
321
328
322
343
354
359
357
365
382
372
371
382
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
39
43
48
60
72
86
97
120
126
132
128
127
119
125
125
122
113
111
111
103
96
95
S&P 500
World
Total
S&P 500
15
17
18
22
27
37
59
99
110
124
134
146
147
157
159
163
151
161
169
166
171
182
6
7
7
7
12
15
20
26
24
28
30
28
29
33
37
41
49
50
57
58
58
58
10
15
14
16
21
18
21
26
26
29
29
27
27
28
33
33
44
43
45
45
46
47
74
96
110
143
205
252
323
465
518
578
601
633
647
699
735
754
757
776
856
871
880
906
43
54
63
86
115
148
166
221
238
255
253
262
258
272
276
278
259
253
260
247
234
232
15
17
19
25
38
52
95
163
197
221
243
269
279
303
312
316
291
301
337
349
363
400
Other
domestic
Equity
Hybrid
and bond
Equity
Other
domestic
Number of funds
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
Total
Year
Year-end
TABLE 48
Data Section 5
6
10
11
11
21
25
31
43
43
53
56
55
62
70
83
95
107
121
144
153
156
148
World
10
15
17
21
31
27
31
38
40
49
49
47
48
54
64
65
100
101
115
122
127
126
Hybrid
and bond
S&P 500
$13,399 $9,029
11,980
8,106
21,853 15,916
42,680 31,828
73,274 54,494
102,843 75,186
145,582 101,675
136,385 92,019
122,247 72,936
127,752 68,085
136,830 67,688
159,310 74,967
163,344 70,763
189,915 69,619
259,454 93,691
249,581 87,082
243,411 69,398
279,016 70,013
330,845 93,679
338,948 93,429
432,830 111,144
511,584 142,880
Total
$1,560
1,283
2,107
4,893
10,219
15,515
26,755
29,049
28,055
34,211
44,593
53,947
56,374
73,333
92,086
82,141
66,308
84,010
107,165
110,994
146,421
178,375
$746
824
1,019
1,855
2,173
3,014
4,544
6,091
4,643
5,161
5,998
9,403
13,523
19,890
30,539
26,258
24,960
50,914
44,919
44,029
59,647
72,752
World
Hybrid and
bond
Total
S&P 500
$2,064
1,767
2,811
4,103
6,388
9,128
12,608
9,225
16,612
20,295
18,550
20,992
22,684
27,074
43,138
54,099
82,744
74,079
85,081
90,496
115,619
117,577
$11,308 $7,926
10,257
7,187
17,669 13,095
34,903 26,165
54,093 41,160
79,382 59,457
112,686 81,540
107,344 75,990
94,018 58,654
99,640 57,060
104,703 54,472
128,162 63,371
131,335 58,818
152,437 59,125
200,076 76,300
201,211 74,131
181,737 60,024
212,865 59,437
268,319 80,167
277,651 79,206
345,802 95,555
436,358 121,824
$1,283
1,130
1,883
4,182
6,562
11,405
18,994
20,141
20,960
24,922
31,680
40,622
43,402
57,380
71,958
64,725
52,130
64,648
83,055
89,369
119,032
152,698
Other
domestic
Equity
Equity
Other
domestic
New1
New + exchange
$455
579
800
1,463
1,816
2,157
3,232
4,863
3,946
4,505
5,178
7,915
11,275
16,061
23,650
22,355
19,406
32,063
36,824
35,357
50,086
62,364
World
$1,644
1,361
1,891
3,093
4,555
6,362
8,920
6,351
10,458
13,154
13,372
16,253
17,840
19,871
28,169
40,000
50,177
56,716
68,274
73,720
81,129
99,473
Hybrid and
bond
$2,091
1,723
4,184
7,776
19,181
23,461
32,896
29,041
28,229
28,112
32,127
31,148
32,009
37,478
59,378
48,369
61,674
66,151
62,526
61,296
87,028
75,225
Total
2 Exchange
New sales are the dollar value of new purchases of mutual fund shares. This does not include shares purchased through reinvestment of dividends in existing accounts.
sales are the dollar value of mutual fund shares switched into funds within the same fund group.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the total because of rounding.
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Year
TABLE 49
Data Section 5
221
$1,104
919
2,821
5,663
13,334
15,728
20,135
16,029
14,282
11,026
13,216
11,597
11,945
10,494
17,391
12,951
9,374
10,577
13,512
14,223
15,588
21,056
S&P 500
$277
153
224
711
3,657
4,109
7,761
8,908
7,096
9,289
12,913
13,325
12,971
15,953
20,129
17,416
14,178
19,361
24,110
21,625
27,389
25,677
Other
domestic
Equity
Exchange2
$291
245
219
392
357
857
1,312
1,228
697
656
820
1,488
2,248
3,828
6,889
3,903
5,554
18,851
8,096
8,672
9,561
10,388
World
$420
405
920
1,010
1,834
2,767
3,688
2,875
6,154
7,141
5,178
4,739
4,844
7,203
14,969
14,099
32,567
17,362
16,807
16,776
34,490
18,104
Hybrid and
bond
222
$6,971
8,632
10,038
17,900
38,427
56,700
83,979
110,793
95,512
102,497
101,596
119,180
135,467
156,941
198,309
214,654
187,435
221,456
276,017
279,905
318,454
363,198
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$5,036
6,236
7,096
13,382
29,286
44,208
63,612
81,237
63,823
63,267
53,457
63,228
71,080
75,527
95,131
79,416
61,203
70,821
100,548
100,568
105,603
130,313
S&P 500
$607
768
1,069
1,700
4,988
7,016
10,653
18,381
19,196
22,059
28,056
37,869
44,643
53,200
62,894
58,804
49,662
68,985
82,565
88,859
99,880
130,050
Other
domestic
$245
387
507
822
1,355
1,446
2,303
4,427
3,462
3,492
3,800
3,742
5,067
9,215
13,625
32,258
20,960
31,839
27,717
28,506
31,338
34,349
World
$1,084
1,241
1,365
1,995
2,797
4,029
7,411
6,749
9,030
13,679
16,284
14,341
14,677
18,999
26,659
44,175
55,609
49,811
65,186
61,971
81,634
68,486
Hybrid and
bond
S&P 500
$5,304 $4,022
7,177
5,426
7,721
5,738
13,578 10,330
24,753 19,824
40,024 32,563
60,809 48,336
80,788 61,735
68,474 47,792
74,963 48,625
76,804 42,814
90,044 50,340
102,053 54,621
118,531 59,556
141,088 71,405
167,817 62,324
133,211 49,794
162,503 56,993
219,553 81,877
212,633 79,623
248,683 89,331
308,639 112,519
Total
$449
645
935
1,429
2,468
4,256
7,050
11,959
12,731
15,223
20,548
26,886
32,287
39,111
42,808
43,144
38,167
54,782
64,654
62,278
81,112
109,906
Other
domestic
Equity
Equity
$118
243
337
566
779
973
1,276
2,816
2,597
2,819
3,407
3,061
4,108
6,775
10,081
28,061
17,725
14,737
20,333
21,662
25,139
28,141
World
$715
863
711
1,253
1,681
2,232
4,146
4,278
5,353
8,296
10,035
9,756
11,036
13,089
16,794
34,288
27,525
35,991
52,689
49,071
53,100
58,073
Hybrid and
bond
$1,667
1,455
2,316
4,321
13,674
16,676
23,170
30,005
27,038
27,534
24,792
29,136
33,414
38,410
57,221
46,837
54,223
58,953
56,464
67,273
69,772
54,559
Total
$1,014
810
1,358
3,052
9,462
11,646
15,276
19,501
16,030
14,642
10,643
12,888
16,459
15,971
23,726
17,092
11,409
13,828
18,671
20,945
16,271
17,795
S&P 500
$158
123
135
271
2,520
2,760
3,603
6,422
6,465
6,835
7,508
10,982
12,356
14,088
20,086
15,660
11,495
14,203
17,911
26,582
18,768
20,144
Other
domestic
Equity
Exchange2
$127
144
170
256
576
473
1,027
1,611
865
673
393
681
959
2,441
3,544
4,197
3,236
17,102
7,384
6,844
6,198
6,207
World
2 Exchange
Regular redemptions are the dollar value of shareholder liquidation of mutual fund shares.
redemptions are the dollar value of mutual fund shares switched out of funds and into other funds within the same fund group.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the total because of rounding.
Total
Year
Regular1
Regular + exchange
$369
379
654
742
1,116
1,797
3,265
2,471
3,677
5,383
6,249
4,585
3,641
5,910
9,865
9,887
28,084
13,820
12,497
12,901
28,534
10,413
Hybrid and
bond
TABLE 50
Data Section 5
TABLE 51
Treasury
inflation-protected
Total
Year
2010
2011
2012
2013
2014
Inflationprotected
$98,326
120,065
137,116
95,942
92,360
$10,112
13,266
13,226
12,218
14,968
$9,181
11,425
7,338
-31,504
-3,089
Number of funds
59
63
68
69
65
50
52
56
57
56
$7,346
9,900
8,289
-31,383
-5,869
$1,835
1,525
-951
-120
2,780
Year-end
2010
2011
2012
2013
2014
Treasury
inflation-protected
$108,438
133,330
150,342
108,160
107,328
Inflationprotected
Year-end
9
11
12
12
9
200
217
234
242
232
170
183
197
205
205
30
34
37
37
27
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
Data Section 5
223
224
Small cap
$-1,510
-2,380
-3,781
-4,434
-3,970
1,860
-1,783
-5,465
-6,398
3,182
-10,061
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Mid cap
Large cap
$365,645
377,231
379,207
393,968
224,911
294,640
327,217
326,621
385,120
506,890
553,506
$-6,726
-6,191
-8,471
-704
-9,602
-982
-1,083
-6,628
-5,353
-2,789
-14,887
Mid cap
$-10,973
-16,583
-18,896
-27,204
-13,884
-9,420
-12,832
6,580
2,008
-12,235
-16,612
Large cap
Growth funds
$144,182
153,494
156,733
177,801
91,841
127,603
159,163
145,985
161,065
213,250
212,407
Multi cap
$3,442
-3,324
4,041
9,005
-11,332
-9,293
-19,261
-33,635
-38,862
-16,798
-28,551
Multi cap
$348,495
381,045
414,190
480,751
276,504
365,994
399,028
355,760
377,791
491,707
508,039
$7,451
2,970
3,653
-4,619
-1,936
1,124
1,313
-4,981
-8,707
-3,971
-10,217
Small cap
$97,716
108,707
130,100
122,045
78,536
104,214
130,444
120,523
133,256
175,810
170,379
Small cap
Year-end
Large cap
$418,598
464,347
570,240
577,987
339,754
416,942
457,150
435,889
472,021
591,825
630,876
$21,072
13,677
-1,544
-1,511
-8,764
2,475
342
-4,924
-7,337
2,711
-4,238
Mid cap
$28,751
19,863
21,344
-4,610
-18,880
-7,542
-13,495
-18,546
-29,504
-25,886
-20,600
Large cap
Value funds
Annual
$111,824
135,441
155,866
158,450
88,563
121,015
146,281
135,407
152,781
209,207
221,202
Mid cap
Value funds
Multi cap
$5,632
3,018
6,181
5,730
-15,198
-3,480
-2,303
-174
-10,646
14,473
9,030
Multi cap
$156,404
169,401
197,391
203,448
111,198
140,769
159,489
155,979
175,072
242,906
272,937
$8,729
3,312
885
-5,886
-7,609
1,383
150
-474
-6,255
7,721
-7,594
Small cap
$97,094
108,504
123,102
119,792
71,867
96,987
120,735
116,868
144,854
207,507
208,209
Small cap
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the total because of rounding.
Small cap
$101,728
106,921
114,522
119,593
67,787
94,830
116,796
107,188
115,903
165,836
158,996
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Growth funds
Millions of dollars
Mutual Funds by Market Capitalization: Total Net Assets and Net New Cash Flow by Type of Fund
TABLE 52
Data Section 5
Large cap
$804,228
843,752
974,531
1,017,004
637,320
817,289
923,238
911,556
1,037,955
1,402,025
1,621,872
$9,117
3,159
1,152
-4,612
-14,118
-1,019
-650
-5,656
-5,774
7,980
-2,099
Mid cap
$12,460
-12,397
-14,435
-4,973
-3,444
3,485
-10,097
-12,239
-10,909
29,367
40,290
Large cap
Blend funds
$146,278
164,955
193,651
202,391
109,537
149,165
182,499
172,318
192,146
265,990
287,573
Mid cap
Blend funds
Multi cap
$18,639
8,807
6,444
-4,918
-31,176
-16,841
-29,809
-42,212
-41,304
-11,499
-23,876
Multi cap
$645,668
701,795
807,898
873,932
493,352
632,531
687,801
630,045
699,308
908,305
965,447
225
258
266
267
246
237
213
207
205
199
192
189
Small cap
657
675
688
653
652
606
580
592
582
561
561
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
412
406
390
351
346
329
316
309
299
287
288
Large cap
671
686
698
699
695
634
610
592
568
556
557
Mid cap
1,033
1,042
1,023
960
997
950
915
903
890
873
885
Large cap
Growth funds
255
255
256
245
245
220
207
198
189
180
179
Mid cap
Growth funds
592
593
592
544
555
537
522
493
474
485
465
Multi cap
247
243
232
209
210
192
182
169
164
165
160
Multi cap
474
524
558
582
595
560
561
582
597
592
609
Small cap
193
208
214
219
221
202
197
203
208
204
212
Small cap
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
Small cap
Year
Year-end
384
397
398
400
396
370
359
341
332
325
328
Large cap
409
447
502
533
560
527
537
540
544
548
586
Mid cap
972
1,048
1,075
1,106
1,111
1,026
1,027
999
962
954
985
Large cap
Value funds
156
166
185
196
201
190
185
181
178
175
185
Mid cap
Value funds
Number of funds
496
507
512
532
549
501
515
544
569
598
620
Multi cap
195
199
199
200
202
189
192
201
211
213
218
Multi cap
414
439
451
480
471
450
431
435
437
477
520
Small cap
176
182
187
196
186
177
171
172
166
178
187
Small cap
Mutual Funds by Market Capitalization: Number of Funds and Number of Share Classes by Type of Fund
TABLE 53
Data Section 5
325
343
353
374
405
383
360
382
378
366
355
1,224
1,205
1,266
1,257
1,303
1,249
1,236
1,221
1,181
1,183
1,213
Large cap
504
482
497
490
491
464
458
439
419
413
417
Large cap
Blend funds
Mid cap
137
139
142
146
149
140
134
140
136
131
129
Mid cap
Blend funds
620
654
679
684
708
718
699
690
710
736
740
Multi cap
256
255
257
254
253
245
233
225
225
228
233
Multi cap
TABLE 54
Retirement Mutual Funds:1 Total Net Assets, Net New Cash Flow, Number of Funds,
and Number of Share Classes
Total
Hybrid
Bond
Money
market
Total
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Equity
$19,896 $3,768
44,901
8,479
73,505 28,815
115,007 39,880
162,530 54,625
121,937 46,339
199,142 70,086
255,357 85,897
244,127 92,785
282,871 182,290
372,406 240,421
381,929 266,799
$1,818
2,597
3,673
5,161
7,785
8,652
12,667
15,317
17,606
22,425
23,867
33,011
$7,652
5,371
5,038
5,266
7,032
9,917
13,076
13,982
9,233
9,375
7,882
7,266
$9,833 $9,295
20,259 18,470
39,825 20,146
34,315 26,354
46,401 31,582
46,180 31,189
40,493 28,460
40,646 28,191
19,225
6,235
28,191 -1,859
26,326
7,717
4,676 -14,086
Data Section 5
306
449
509
576
654
730
718
720
734
763
789
852
46
101
148
202
249
333
385
378
405
430
485
511
Money
market
$1,872
3,447
19,087
6,867
10,919
11,225
9,149
9,662
8,232
26,418
17,229
11,718
$453
653
1,029
1,174
2,467
1,904
2,461
1,856
2,381
3,491
1,841
7,846
-$1,786
-2,310
-437
-80
1,434
1,861
423
937
2,377
141
-461
-803
Year-end
431
673
796
925
1,073
1,249
1,305
1,319
1,377
1,458
1,548
1,669
Bond
Number of funds
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Hybrid
$33,135
61,349
111,030
165,314
231,972
186,845
294,970
370,553
363,751
496,961
644,576
689,005
Equity
Year-end
69
109
124
129
150
167
183
202
220
250
262
293
10
14
15
18
20
19
19
19
18
15
12
13
611
913
1,246
1,600
1,849
2,055
2,163
2,064
2,147
2,335
2,537
2,748
408
582
748
887
991
1,063
1,085
1,053
1,063
1,121
1,174
1,291
82
158
269
461
573
699
750
674
709
800
921
957
102
147
197
217
246
255
294
304
342
385
421
477
19
26
32
35
39
38
34
33
33
29
21
23
1 Retirement
mutual funds include share classes and funds that are primarily available to retirement plans or IRAs. The table includes
data for funds that invest primarily in other funds.
2 Net new cash flow is the dollar value of new sales minus redemptions combined with net exchanges.
Note: Components may not add to the total because of rounding.
226
$9,949
23,800
32,244
46,859
70,758
70,973
65,162
80,204
82,825
78,171
82,316
86,438
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$2,404
4,547
21,069
10,686
17,981
20,171
17,734
21,249
24,678
56,405
57,588
62,463
Hybrid
$1,156
1,468
2,108
2,277
4,341
5,026
6,522
6,639
7,012
8,817
9,433
14,255
Bond
$40,898
30,826
33,828
37,776
24,488
31,069
33,238
69,288
92,253
36,308
36,170
32,118
Money
market
$2,303
1,221
1,501
3,511
3,949
5,142
17,779
14,849
10,389
10,090
15,034
19,853
Equity
Sales
$180
161
215
517
641
1,576
3,062
1,580
2,058
5,193
11,814
15,843
Hybrid
$125
90
122
229
452
653
1,278
707
1,507
781
560
542
Bond
Exchange4
$154
169
167
303
712
1,192
858
609
866
606
569
427
Money
market
$2,745
6,246
13,006
22,957
41,247
39,887
36,292
52,432
74,369
77,727
77,102
105,668
Equity
$663
1,177
2,028
4,001
7,243
9,154
8,068
11,660
16,333
28,190
39,497
46,464
Hybrid
$719
792
1,053
1,162
2,080
3,360
3,641
4,921
5,518
5,664
7,522
6,404
Bond
Regular5
$42,588
32,980
34,053
37,728
22,965
29,668
32,757
68,364
90,162
36,285
36,636
32,891
Money
market
$212
306
593
1,060
1,878
5,039
18,190
14,430
12,610
12,393
12,531
14,708
Equity
Redemptions
2 Net
Retirement mutual funds include share classes and funds that are primarily available to retirement plans or IRAs. The table includes data for funds that invest primarily in other funds.
new cash flow is the dollar value of new sales minus redemptions combined with net exchanges.
3 New sales are the dollar value of new purchases of mutual fund shares. This does not include shares purchased through reinvestment of dividends in existing accounts.
4 Exchange sales are the dollar value of mutual fund shares switched into funds within the same fund family.
5 Regular redemptions are the dollar value of shareholder liquidation of mutual fund shares.
6 Exchange redemptions are the dollar value of mutual fund shares switched out of funds and into other funds within the same fund group.
Note: Components may not add to the total because of rounding.
Equity
Year
New3
$48
84
170
336
460
1,368
3,579
1,508
2,171
6,990
12,676
20,124
Hybrid
$110
113
147
171
246
415
1,699
568
621
442
629
547
Bond
Exchange6
TABLE 55
Data Section 5
227
$250
326
379
430
801
732
916
596
579
488
564
457
Money
market
TABLE 56
Sector Mutual Funds: Total Net Assets and Net New Cash Flow by Type of Fund
Millions of dollars
Total net assets
Year-end
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Consumer Financial
$1,042
1,290
1,096
1,436
1,631
1,405
1,928
2,147
1,776
2,439
3,113
3,546
4,675
6,431
7,017
$16,087
13,901
10,885
13,138
12,917
11,837
12,269
8,518
4,857
5,941
6,286
4,548
5,901
9,285
9,415
Health
$45,921
40,545
30,087
36,803
40,147
45,398
44,744
43,967
31,337
32,440
32,507
35,884
44,105
74,767
103,447
Natural
resources
Precious
Technology/
metals Real estate
Telcom
Utilities
Other
sectors
$22,908
17,744
11,275
13,481
19,201
28,390
34,589
45,669
23,240
30,327
33,332
34,785
35,400
40,149
41,556
$3,917
2,940
2,082
2,412
2,974
3,189
3,950
4,826
1,766
2,986
4,597
3,906
5,001
8,173
8,969
Precious
Technology/
metals Real estate
Telcom
Utilities
Other
sectors
-$203
-28
480
456
419
1,016
717
-214
832
2,249
2,353
-1,336
152
-1,425
-165
$1,015
-953
-2,076
-292
1,571
3,311
556
1,992
-3,397
254
-848
701
-1,994
-1,409
3,783
-$187
-198
-288
-145
148
121
-49
257
-488
386
724
-286
173
977
91
$2,955
$1,108
2,429
1,276
2,230
2,431
3,307
4,158
5,844
4,215
12,048
6,928
14,723
9,741
22,312
11,804
9,967
7,776
17,496
14,785
22,853
22,926
20,998
17,029
22,041
15,293
30,960
6,790
36,904
6,005
Net new cash flow
$11,675
13,509
17,745
31,653
49,927
59,158
81,329
53,738
33,503
44,126
56,830
61,665
77,033
79,034
106,106
$103,853
62,339
31,308
46,929
42,403
34,366
32,891
34,169
16,331
27,610
30,738
26,680
28,570
41,486
45,358
Annual
Data Section 5
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Consumer Financial
-$122
254
11
9
3
-209
29
94
209
82
101
262
544
794
47
-$534
-962
-1,603
-940
-1,535
-1,586
-1,017
-2,617
96
-457
-626
-885
56
859
-256
Health
Natural
resources
$9,256
236
-2,895
-767
-387
836
-4,137
-3,378
-3,025
-3,163
-2,407
478
1,385
8,582
7,645
$236
-182
-70
327
1,414
3,483
789
1,724
-268
1,767
1,470
1,193
564
5,411
5,823
$339
430
3,612
5,177
7,050
3,000
4,395
-15,282
1,791
492
1,695
916
4,307
241
5,186
$43,837
-4,458
-6,211
73
-6,165
-8,541
-4,456
-2,745
-3,847
1,768
-1,391
-2,346
-1,515
1,972
85
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
228
TABLE 57
Sector Mutual Funds: Number of Funds and Number of Share Classes by Type of
Fund
Year-end
Number of funds
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Consumer Financial
7
9
12
11
14
14
18
19
19
19
19
19
20
19
19
34
41
42
38
40
41
40
40
38
36
35
32
33
32
31
Health
Natural
resources
38
57
63
58
59
53
57
52
48
41
38
34
35
35
34
19
18
15
16
17
18
20
20
21
20
21
26
28
32
36
Precious
Technology/
metals Real estate
Telcom
11
10
11
11
11
11
12
11
11
11
11
10
11
11
11
74
75
79
91
94
93
97
96
92
90
88
84
85
88
88
132
155
145
124
115
103
108
98
88
79
74
69
66
68
67
Utilities
Other
sectors
34
40
35
33
34
32
38
39
41
37
35
33
36
41
37
16
17
19
19
20
19
23
25
22
23
21
21
24
24
24
Utilities
Other
sectors
75
89
91
88
91
94
107
113
117
105
96
89
100
109
96
23
25
28
28
29
27
37
42
33
41
36
36
43
44
40
12
17
22
19
27
26
33
41
42
42
42
43
47
41
41
73
88
92
85
92
95
93
95
91
80
79
72
73
72
70
Health
Natural
resources
91
145
171
155
159
137
147
133
124
101
97
80
83
83
80
33
32
26
33
34
38
41
47
52
50
54
75
85
97
106
Precious
Technology/
metals Real estate
Telcom
19
21
24
26
27
27
30
34
37
37
38
33
36
34
34
151
156
172
214
238
240
246
252
246
246
251
243
246
261
271
283
350
348
290
279
260
267
249
218
199
190
184
182
188
181
Data Section 5
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Consumer Financial
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
229
230
$487
805
1,408
4,508
7,014
8,788
12,372
14,902
25,901
43,756
71,223
114,560
182,905
159,830
255,590
339,772
375,810
480,743
618,016
702,632
Target date
Lifestyle
$2,259
5,693
12,906
20,905
27,835
30,928
33,095
34,523
55,832
85,414
130,794
189,034
237,958
175,591
230,950
264,155
261,932
292,387
358,530
394,448
$1,194
2,583
4,138
6,015
4,928
7,581
7,696
8,095
19,040
28,336
57,166
66,792
91,920
54,424
52,116
48,615
40,367
50,218
55,250
41,648
Total
$185
216
193
1,153
1,311
3,598
3,795
3,708
7,221
12,903
22,256
33,023
56,200
41,897
43,442
44,431
41,557
52,948
52,968
44,583
Target date
Lifestyle
$1,009
2,367
3,945
4,862
3,618
3,983
3,902
4,386
11,819
15,432
34,910
33,769
35,720
12,527
8,674
4,184
-1,189
-2,730
2,282
-2,935
2 Net
$2,746
6,497
14,314
25,413
34,849
39,716
45,467
49,425
81,733
129,170
202,017
303,594
420,863
335,421
486,540
603,926
637,742
773,130
976,546
1,097,080
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1 Categories
Total
Year
26
44
77
110
130
146
147
171
192
241
324
422
494
613
643
638
674
682
760
797
Total
6
9
12
17
19
24
25
25
45
84
127
184
245
338
379
377
412
430
491
528
Target date
Year-end
Number of funds
Lifestyle
20
35
65
93
111
122
122
146
147
157
197
238
249
275
264
261
262
252
269
269
50
70
141
199
240
279
351
432
499
740
1,128
1,559
1,837
2,215
2,350
2,327
2,484
2,598
2,927
3,036
Total
Year-end
10
9
17
23
30
42
82
82
120
263
465
783
1,035
1,367
1,513
1,491
1,620
1,754
2,031
2,142
Target date
Lifestyle
40
61
124
176
210
237
269
350
379
477
663
776
802
848
837
836
864
844
896
894
Target Date and Lifestyle Mutual Funds:1 Total Net Assets, Net New Cash Flow, Number of Funds, and Number of Share Classes
TABLE 58
Data Section 5
$282
622
513
1,306
1,831
4,267
4,787
5,282
8,083
16,442
26,754
39,913
76,155
78,539
80,328
107,618
131,659
143,656
171,407
186,196
Target date
Lifestyle
$1,008
2,771
5,067
7,549
8,832
10,767
10,621
12,953
19,498
25,228
50,358
49,584
61,517
48,978
38,138
42,356
40,759
39,052
46,324
54,002
Sales
Total
$364
564
1,066
2,782
3,144
4,621
4,179
3,691
5,321
8,713
11,647
17,113
23,456
22,099
15,172
20,606
22,271
19,668
30,991
33,593
$9
12
33
1,354
1,707
2,845
2,576
2,307
3,390
5,474
7,692
11,157
17,041
16,120
11,554
16,623
17,914
15,988
25,303
28,093
Target date
Exchange4
$355
552
1,033
1,428
1,436
1,776
1,602
1,384
1,931
3,239
3,955
5,956
6,415
5,979
3,618
3,983
4,356
3,680
5,687
5,500
Lifestyle
Total
$304
989
1,763
3,557
6,102
8,302
8,510
10,901
11,038
17,571
25,919
31,232
56,637
73,878
68,193
104,940
131,977
133,050
166,957
187,264
$100
406
331
641
1,000
1,654
1,844
2,340
2,521
6,274
8,633
12,662
28,507
38,386
39,388
67,373
90,802
92,069
121,592
129,048
Target date
Regular5
$203
583
1,432
2,916
5,102
6,648
6,665
8,561
8,518
11,296
17,287
18,571
28,131
35,492
28,805
37,567
41,176
40,981
45,365
58,216
Lifestyle
$155
385
746
2,066
2,776
3,772
3,381
2,930
2,824
4,477
5,673
8,586
12,570
21,314
13,329
17,025
22,343
19,107
26,514
44,878
Total
Redemptions
2 Net
1 Categories
Total
$1,289
3,393
5,580
8,856
10,663
15,034
15,408
18,235
27,581
41,670
77,111
89,497
137,672
127,517
118,467
149,974
172,417
182,707
217,731
240,198
Year
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
New3
$5
11
22
867
1,227
1,861
1,724
1,541
1,731
2,739
3,558
5,385
8,490
14,375
9,053
12,437
17,215
14,626
22,150
40,658
Target date
Exchange6
Target Date and Lifestyle Mutual Funds:1 Components of Net New Cash Flow2
TABLE 59
Data Section 5
231
Lifestyle
$151
373
723
1,199
1,549
1,912
1,656
1,389
1,093
1,738
2,116
3,201
4,080
6,938
4,277
4,588
5,129
4,481
4,364
4,221
232
$28,749
91,056
109,868
152,403
176,370
259,813
349,341
473,331
615,152
818,958
816,800
742,258
638,949
837,443
973,910
1,072,894
1,266,934
1,398,318
928,693
1,187,610
1,339,176
1,298,460
1,439,578
1,654,071
1,686,125
$14,974
69,138
80,934
104,823
121,153
187,702
260,959
364,286
474,961
656,877
652,421
558,654
438,603
619,018
738,444
822,105
975,532
1,052,868
598,524
792,083
886,357
800,129
875,004
1,050,470
1,065,119
Equity
$8,355
13,734
21,046
39,740
44,339
60,042
73,189
92,571
116,337
128,349
131,342
138,848
152,276
182,773
202,106
217,090
249,210
292,727
255,199
338,231
404,265
449,458
520,642
563,809
583,882
Hybrid and
bond
$5,420
8,184
7,888
7,841
10,878
12,069
15,193
16,474
23,853
33,732
33,037
44,756
48,070
35,652
33,361
33,699
42,192
52,723
74,971
57,296
48,554
48,873
43,932
39,792
37,124
Money
market
$3,083
6,174
12,884
26,088
22,066
20,824
40,133
40,470
44,259
38,543
48,461
21,583
-1,286
29,827
33,505
16,404
29,712
31,780
-6,059
10,033
-2,313
-21,340
-32,827
-56,170
-69,003
Total
$1,866
5,097
8,708
16,423
15,998
18,604
32,699
33,743
27,857
30,736
58,314
4,861
-12,763
34,969
33,592
13,254
17,018
1,581
-30,615
-3,644
-25,375
-48,213
-55,367
-61,392
-58,542
Equity
$323
1,498
4,363
9,834
3,763
2,214
5,063
6,316
10,362
-460
-7,790
8,035
11,151
6,929
2,595
4,449
7,192
22,948
5,018
32,483
32,773
26,737
27,672
7,860
-7,796
$895
-420
-188
-169
2,305
5
2,371
411
6,040
8,267
-2,063
8,687
327
-12,071
-2,683
-1,299
5,501
7,251
19,538
-18,806
-9,711
136
-5,132
-2,638
-2,665
Hybrid and
bond
Money market
331
354
366
428
507
665
800
937
1,162
1,353
1,562
1,750
1,903
1,889
1,881
1,882
1,926
1,900
1,897
1,830
1,772
1,737
1,724
1,731
1,723
Total
145
150
157
192
245
344
435
535
703
868
1,051
1,248
1,389
1,364
1,351
1,356
1,391
1,367
1,369
1,307
1,256
1,222
1,195
1,180
1,149
Equity
134
147
151
176
202
250
290
323
377
404
431
413
422
437
443
443
454
455
449
450
446
451
469
494
518
Hybrid and
bond
Year-end
Number of funds
* Net new cash flow is the dollar value of new sales minus redemptions combined with net exchanges.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the total because of rounding.
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Variable Annuity Mutual Funds: Total Net Assets, Net New Cash Flow, and Number of Funds
TABLE 60
Data Section 5
52
57
58
60
60
71
75
79
82
81
80
89
92
88
87
83
81
78
79
73
70
64
60
57
56
Money market
233
$9,994
16,408
24,779
42,392
48,010
53,101
84,933
105,222
141,464
212,025
334,936
346,166
342,193
283,007
261,715
246,396
280,246
343,465
380,350
312,904
337,448
330,907
308,491
295,312
256,023
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$4,714
9,034
13,294
22,738
25,661
31,661
53,188
67,005
83,457
130,900
222,945
197,831
183,758
169,043
170,082
162,387
191,872
218,138
198,130
150,971
164,882
144,679
128,108
142,685
132,893
Equity
$1,808
3,368
6,634
13,146
10,907
9,326
13,056
15,290
23,227
22,004
20,128
33,707
48,179
54,392
46,592
48,220
51,529
73,991
94,051
100,405
139,602
149,977
151,807
121,879
94,929
$3,473
4,006
4,851
6,508
11,443
12,114
18,689
22,926
34,780
59,120
91,863
114,628
110,256
59,572
45,042
35,789
36,846
51,336
88,169
61,528
32,964
36,252
28,575
30,748
28,201
Money
market
Sales
$1,082
838
1,568
1,131
7,017
8,674
12,656
24,210
37,136
40,818
36,326
31,716
34,170
28,791
26,407
19,598
22,318
37,045
25,445
22,650
17,325
16,269
14,248
23,205
9,591
Total
$450
331
740
576
4,064
4,984
7,190
13,017
18,967
22,080
22,822
15,928
16,428
15,307
14,396
10,599
10,823
19,701
11,112
14,589
6,755
6,816
10,720
14,353
4,669
Equity
$183
174
350
325
429
727
864
2,348
5,502
2,985
1,852
5,185
7,160
5,944
5,711
3,403
3,425
8,247
5,114
3,767
6,742
6,865
2,118
5,993
1,607
$449
333
478
230
2,525
2,963
4,602
8,846
12,668
15,753
11,652
10,604
10,583
7,540
6,300
5,595
8,070
9,097
9,220
4,294
3,828
2,589
1,410
2,859
3,316
Exchange3
$6,993
10,294
12,014
16,352
25,933
32,283
44,729
65,377
99,141
174,418
287,230
325,676
344,224
253,526
228,278
230,118
250,509
317,180
390,038
302,742
339,508
352,265
340,384
349,726
324,386
Total
$2,941
3,967
4,745
6,425
9,941
13,201
20,497
33,408
54,024
100,392
166,186
190,977
194,374
136,061
136,344
148,067
173,300
215,814
227,293
154,821
188,495
189,868
181,579
201,508
189,768
Equity
$1,465
1,920
2,348
3,410
6,830
7,234
8,041
9,905
14,964
22,275
27,483
27,510
38,908
46,632
44,382
44,472
44,350
55,877
90,601
69,691
108,612
125,488
124,982
113,350
103,575
Hybrid and
bond
Regular4
$2,587
4,407
4,921
6,517
9,161
11,849
16,191
22,063
30,153
51,750
93,561
107,189
110,942
70,832
47,552
37,578
32,859
45,488
72,144
78,231
42,401
36,910
33,824
34,867
31,043
Money
market
$1,000
778
1,450
1,084
7,029
8,668
12,726
23,586
35,199
39,883
35,571
30,623
33,425
28,445
26,340
19,472
22,344
31,550
21,816
22,778
17,578
16,251
15,181
24,960
10,232
Total
Redemptions
$357
301
581
467
3,786
4,840
7,182
12,871
20,542
21,853
21,267
17,921
18,574
13,319
14,543
11,666
12,376
20,444
12,564
14,382
8,517
9,840
12,616
16,922
6,335
2 New
$203
124
273
227
742
606
815
1,417
3,403
3,174
2,288
3,346
5,281
6,774
5,325
2,702
3,412
3,413
3,546
1,999
4,959
4,616
1,271
6,661
758
$440
352
596
390
2,501
3,223
4,729
9,298
11,254
14,856
12,017
9,356
9,570
8,351
6,472
5,104
6,555
7,693
5,706
6,397
4,102
1,795
1,293
1,377
3,139
Exchange5
Equity
Net new cash flow is the dollar value of new sales minus redemptions combined with net exchanges.
sales are the dollar value of new purchases of mutual fund shares. This does not include shares purchased through reinvestment of dividends in existing accounts.
3 Exchange sales are the dollar value of mutual fund shares switched into funds within the same fund group.
4 Regular redemptions are the dollar value of shareholder liquidation of mutual fund shares.
5 Exchange redemptions are the dollar value of mutual fund shares switched out of funds and into other funds within the same fund group.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to the total because of rounding.
Total
Year
Hybrid and
bond
New2
TABLE 61
Data Section 5
TABLE 62
Total Net Assets of Mutual Funds Held in Individual and Institutional Accounts
Millions of dollars, year-end
Year
Total
Equity
Hybrid
Bond
Money market
$6,964,634
6,974,913
6,383,477
7,402,482
8,095,801
8,891,373
10,398,137
12,000,168
9,602,891
11,112,623
11,832,988
11,631,894
13,052,230
15,034,776
15,852,341
$3,934,480
3,392,399
2,642,420
3,653,370
4,342,577
4,885,444
5,832,582
6,413,222
3,637,416
4,872,541
5,596,629
5,212,989
5,938,747
7,762,727
8,314,314
$360,916
358,027
335,276
447,570
552,250
621,479
731,503
821,522
562,262
717,580
841,415
883,056
1,029,257
1,267,329
1,351,839
$823,990
939,177
1,140,707
1,261,520
1,299,274
1,357,630
1,495,619
1,679,664
1,570,978
2,206,609
2,591,022
2,844,428
3,390,704
3,286,388
3,460,928
$1,845,248
2,285,310
2,265,075
2,040,022
1,901,700
2,026,822
2,338,451
3,085,760
3,832,236
3,315,893
2,803,922
2,691,422
2,693,523
2,718,332
2,725,260
$3,726,670
3,215,167
2,491,013
3,463,587
4,093,544
4,576,622
5,437,561
5,986,591
3,388,810
4,503,074
5,130,806
4,778,381
5,447,329
7,157,267
7,663,417
$350,537
347,782
325,811
435,131
536,248
600,437
704,116
792,386
544,230
693,742
807,872
844,223
987,061
1,209,698
1,291,976
$753,419
855,593
1,047,210
1,168,540
1,205,962
1,235,488
1,358,138
1,521,986
1,425,757
2,009,477
2,338,145
2,578,389
3,066,238
2,954,172
3,104,217
$1,411,942
1,683,820
1,657,012
1,487,338
1,368,522
1,390,586
1,598,787
2,088,648
2,479,575
2,082,689
1,775,308
1,722,462
1,724,783
1,707,219
1,669,228
$207,810
177,232
151,407
189,783
249,033
308,822
395,021
426,630
248,606
369,467
465,823
434,607
491,418
605,460
650,897
$10,379
10,245
9,465
12,439
16,002
21,042
27,386
29,136
18,031
23,839
33,542
38,832
42,195
57,631
59,863
$70,571
83,584
93,497
92,980
93,312
122,143
137,481
157,678
145,220
197,132
252,877
266,039
324,465
332,216
356,710
$433,306
601,490
608,064
552,684
533,178
636,235
739,664
997,112
1,352,661
1,233,204
1,028,615
968,960
968,740
1,011,114
1,056,032
Total
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Individual accounts
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$6,242,568
6,102,362
5,521,045
6,554,596
7,204,277
7,803,133
9,098,602
10,389,611
7,838,372
9,288,981
10,052,131
9,923,455
11,225,411
13,028,356
13,728,839
Data Section 6
Institutional accounts*
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$722,066
872,551
862,432
847,885
891,524
1,088,239
1,299,535
1,610,557
1,764,519
1,823,642
1,780,857
1,708,438
1,826,819
2,006,421
2,123,502
* Institutional accounts include accounts purchased by an institution, such as a business, financial, or nonprofit
organization. Institutional accounts do not include primary accounts of individuals issued by a broker-dealer.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add
to the total because of rounding.
234
TABLE 63
Total Net Assets of Institutional Investors in Mutual Funds by Type of Institution and
Type of Fund
Millions of dollars, year-end
Year
2006
2007
2008
2009
2010
2011
2012
2013
Business
corporations
$605,919
135,407
7,856
34,654
428,003
752,596
136,905
8,306
38,276
569,109
916,758
70,419
5,702
29,355
811,283
896,961
106,237
7,989
47,265
735,470
752,449
121,499
10,952
54,091
565,907
695,581
102,346
12,042
51,684
529,509
699,023
109,141
11,217
59,217
519,448
770,167
136,640
15,299
59,084
559,144
815,013
150,438
15,660
68,765
580,150
Financial
institutions1
$392,457
117,135
8,295
26,783
240,243
474,827
119,384
10,216
30,836
314,390
496,069
64,968
5,708
28,624
396,769
505,916
89,282
7,126
41,527
367,982
513,067
108,061
10,187
54,861
339,957
484,560
94,629
11,390
57,819
320,721
510,828
96,889
13,941
68,607
331,391
539,879
118,295
17,246
70,180
334,158
566,443
121,086
18,062
78,664
348,631
Nonprofit
organizations
$125,403
55,242
4,848
25,411
39,902
150,177
60,760
4,500
24,435
60,482
135,287
32,882
2,717
22,868
76,820
147,414
44,777
3,665
29,010
69,963
153,520
49,360
4,261
33,325
66,574
146,589
45,695
4,794
36,041
60,058
153,066
52,675
5,186
40,130
55,074
169,662
64,180
7,419
36,469
61,593
185,283
65,465
7,682
40,014
72,122
Other2
$175,755
87,219
6,388
50,633
31,515
232,957
109,580
6,114
64,131
53,132
216,404
80,338
3,904
64,373
67,789
273,352
129,171
5,060
79,331
59,790
361,821
186,903
8,142
110,599
56,177
381,709
191,937
10,606
120,495
58,671
463,902
232,712
11,851
156,511
62,828
526,713
286,344
17,667
166,483
56,218
556,762
313,908
18,459
169,267
55,129
Data Section 6
2014
Total
Equity
Hybrid
Bond
Money market
Total
Equity
Hybrid
Bond
Money market
Total
Equity
Hybrid
Bond
Money market
Total
Equity
Hybrid
Bond
Money market
Total
Equity
Hybrid
Bond
Money market
Total
Equity
Hybrid
Bond
Money market
Total
Equity
Hybrid
Bond
Money market
Total
Equity
Hybrid
Bond
Money market
Total
Equity
Hybrid
Bond
Money market
Total
$1,299,535
395,003
27,386
137,481
739,664
1,610,557
426,630
29,136
157,678
997,112
1,764,519
248,606
18,031
145,220
1,352,661
1,823,642
369,467
23,839
197,132
1,233,204
1,780,857
465,823
33,542
252,877
1,028,615
1,708,438
434,607
38,832
266,039
968,960
1,826,819
491,418
42,195
324,465
968,740
2,006,421
605,460
57,631
332,216
1,011,114
2,123,502
650,897
59,863
356,710
1,056,032
1 Financial
institutions include credit unions, investment clubs, accounts of banks not held as fiduciaries, insurance
companies, and other financial organizations.
2 Other institutional investors include state and local governments, funds holding mutual fund shares, and other institutional
accounts not classified.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
235
TABLE 64
Total Net Assets of Institutional Investors in Taxable Money Market Funds by Type
of Institution and Type of Fund1
Millions of dollars, year-end
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Data Section 6
2011
2012
2013
2014
Total
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
Total
Institutional funds
Retail funds
$409,466
305,180
104,286
575,181
469,167
106,014
578,112
485,551
92,561
515,153
429,149
86,005
486,612
406,837
79,775
578,538
485,208
93,330
677,610
582,316
95,294
919,892
807,813
112,079
1,265,490
1,141,552
123,937
1,157,743
1,059,673
98,070
971,055
882,599
88,456
923,001
835,898
87,102
921,982
846,066
75,916
967,143
895,654
71,489
1,013,032
943,830
69,202
Business
corporations
$201,985
137,226
64,759
300,471
235,624
64,847
303,148
247,671
55,477
270,469
221,267
49,202
277,235
228,681
48,554
322,944
270,964
51,980
388,596
324,826
63,770
517,835
447,602
70,233
748,320
672,189
76,130
678,917
617,034
61,883
523,805
470,349
53,456
494,801
442,179
52,622
483,275
437,390
45,885
523,505
475,961
47,544
545,170
499,074
46,097
Financial
institutions2
$158,334
134,543
23,791
219,136
195,663
23,473
226,645
202,475
24,170
194,259
173,539
20,720
161,810
146,630
15,180
197,002
172,306
24,697
221,779
208,179
13,600
294,356
273,550
20,806
377,468
350,450
27,018
353,677
332,846
20,831
328,133
306,445
21,688
312,442
290,467
21,975
322,483
303,243
19,241
327,287
312,847
14,440
342,748
329,067
13,681
Nonprofit
organizations
$22,987
14,951
8,037
27,975
18,193
9,783
27,673
20,186
7,487
32,223
22,473
9,751
28,909
18,941
9,968
32,896
23,672
9,224
37,856
26,698
11,158
57,470
43,408
14,062
74,803
60,632
14,171
68,124
57,764
10,360
65,252
56,440
8,812
58,686
50,996
7,689
53,961
47,365
6,596
60,631
55,146
5,485
70,608
64,887
5,722
Other3
$26,160
18,460
7,699
27,599
19,687
7,912
20,646
15,219
5,427
18,202
11,870
6,333
18,659
12,586
6,073
25,696
18,266
7,430
29,379
22,613
6,766
50,232
43,254
6,977
64,900
58,282
6,618
57,025
52,029
4,996
53,865
49,365
4,500
57,072
52,256
4,815
62,262
58,067
4,194
55,721
51,701
4,020
54,506
50,802
3,703
1 Institutional
funds are sold primarily to institutional investors or institutional accounts. This includes accounts that are
purchased by an institution, such as a business, financial, or nonprofit organization. Retail funds are sold primarily to
individual investors and include variable annuity mutual funds.
2 Financial institutions include credit unions, investment clubs, accounts of banks not held as fiduciaries, insurance
companies, and other financial organizations.
3 Other institutional investors include state and local governments, funds holding mutual fund shares, and other institutional
accounts not classified.
Note: Data for funds that invest primarily in other mutual funds were excluded from the series. Components may not add to
the total because of rounding.
236
TABLE 65
2008
2009
2010
2011
2012
2013
2014
$26,130,201
13,421,794
6,789
615,365
698,397
24,444
1,203
75,428
N/A
12,000,168
8,934,861
138,709
149,842
N/A
N/A
7,595
104,083
81,136
1,989,690
372,072
29,807
12,573
951,371
419,687
25,103
2,685,065
N/A
113,759
74,709
45,542
29,732
390
7,175
4,762
4,219
396,534
194,955
176,282
22,609
897,460
3,678,325
1,192,988
434,063
818,421
108,582
713,998
329,979
14,925
4,956
2,090
58,323
95,221
95,221
$18,919,299
10,581,230
3,867
479,321
416,031
17,587
1,098
60,435
N/A
9,602,891
6,231,116
93,269
105,057
226
N/A
5,260
65,182
48,750
1,591,082
237,986
12,189
9,188
720,486
263,588
20,489
1,860,763
N/A
77,379
41,157
17,782
13,572
326
2,026
3,841
2,067
270,983
113,331
135,052
15,404
504,681
2,037,536
841,133
276,303
N/A
62,805
575,327
221,992
10,612
1,985
1,263
46,116
69,417
69,417
$22,945,270
12,578,245
4,470
783,970
565,156
34,227
1,309
70,659
5,832
11,112,623
7,545,531
99,628
106,721
256
N/A
5,436
83,024
66,131
1,805,641
317,543
12,434
11,052
860,515
279,474
30,329
2,293,973
N/A
95,512
71,170
23,025
15,808
1,134
3,182
4,222
2,610
269,611
170,277
168,260
19,426
729,141
2,715,233
1,198,838
381,207
N/A
130,284
660,666
264,573
17,657
2,224
1,488
58,297
106,261
106,261
$24,711,508
13,599,181
5,179
980,448
636,947
38,243
1,470
98,094
5,812
11,832,988
7,903,389
94,670
96,288
302
N/A
5,508
89,800
71,210
1,617,176
333,713
8,627
11,532
1,014,104
234,313
35,387
2,512,874
N/A
85,924
84,505
25,595
11,004
1,713
3,917
4,349
2,663
216,915
205,449
261,893
19,545
854,413
3,067,323
1,455,850
364,985
N/A
111,421
785,504
266,495
19,562
2,290
2,184
59,032
141,615
141,615
$23,801,209
13,534,659
6,808
1,008,928
753,606
33,425
1,266
92,743
5,989
11,631,894
7,220,298
81,038
81,505
291
N/A
4,445
84,891
62,193
1,382,068
293,011
5,213
7,193
1,061,051
180,754
32,606
2,277,465
2,132
69,156
79,999
18,463
7,321
2,388
3,072
3,191
2,279
195,220
179,707
273,061
14,048
816,537
2,921,276
1,440,128
339,037
N/A
87,519
745,383
226,716
23,709
2,984
2,363
53,437
124,976
124,976
$26,844,414
15,147,007
9,185
1,070,998
856,504
37,900
1,484
112,201
6,505
13,052,230
8,230,059
89,125
81,651
324
N/A
5,001
103,506
73,985
1,473,085
327,640
6,011
8,570
1,276,601
181,720
31,951
2,641,964
3,033
76,145
98,723
25,883
7,509
2,613
N/A
2,951
2,370
191,284
205,733
310,686
16,478
985,517
3,322,198
1,667,128
437,449
N/A
114,489
738,488
267,582
31,145
3,159
3,566
59,192
145,150
145,150
$30,047,406
17,173,504
11,179
1,018,641
940,580
39,291
1,933
120,518
6,586
15,034,776
9,374,830
90,633
91,528
504
N/A
5,131
118,702
88,462
1,531,500
382,976
6,742
12,158
1,439,867
215,553
36,235
3,030,665
3,160
85,304
109,325
27,858
9,625
4,000
N/A
3,292
2,506
248,234
252,878
397,080
14,078
1,166,834
3,356,204
1,624,081
460,332
N/A
107,895
774,126
285,173
34,185
3,464
4,662
62,286
142,868
142,868
$31,381,425
18,012,199
15,630
989,542
981,804
44,166
2,092
119,504
7,121
15,852,341
9,576,475
83,522
90,211
496
2,058
5,563
121,092
86,621
1,391,271
359,867
5,256
11,375
1,547,343
238,327
28,875
3,208,264
3,522
75,751
112,223
26,098
8,564
4,932
N/A
4,183
2,553
274,049
279,094
407,890
15,292
1,182,184
3,646,276
1,601,132
708,884
N/A
134,630
780,636
312,150
41,560
4,156
5,078
58,049
146,474
146,474
237
Data Section 7
World
Americas
Argentina
Brazil
Canada
Chile
Costa Rica
Mexico
Trinidad and Tobago
United States
Europe
Austria
Belgium
Bulgaria
Croatia
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Liechtenstein
Luxembourg
Malta
Netherlands
Norway
Poland
Portugal
Romania
Russia
Slovakia
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom
Asia and Pacific
Australia
China
Hong Kong
India
Japan
Korea, Rep. of
New Zealand
Pakistan
Philippines
Taiwan
Africa
South Africa
TABLE 66
Data Section 7
Year-end
World
Americas
Argentina
Brazil
Canada
Chile
Costa Rica
Mexico
Trinidad and Tobago
United States
Europe
Austria
Belgium
Bulgaria
Croatia
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Liechtenstein
Luxembourg
Malta
Netherlands
Norway
Poland
Portugal
Romania
Russia
Slovakia
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom
Asia and Pacific
Australia
China
Hong Kong
India
Japan
Korea, Rep. of
New Zealand
Pakistan
Philippines
Taiwan
Africa
South Africa
2007
2008
2009
2010
2011
2012
2013
2014
66,362
15,474
241
3,381
2,038
1,260
93
420
N/A
8,041
35,210
1,070
1,655
N/A
N/A
66
500
379
8,243
1,462
230
212
2,898
924
391
8,782
N/A
450
511
188
180
41
533
54
106
2,940
477
567
294
2,057
14,847
N/A
341
1,162
555
2,997
8,609
623
64
40
456
831
831
69,049
16,476
253
4,169
2,015
1,484
85
431
N/A
8,039
36,780
1,065
1,828
81
N/A
76
489
389
8,301
1,675
239
270
3,097
742
335
9,351
N/A
458a
530
210
184
52
528
56
125
2,944
508
572
304
2,371
14,909
N/A
429
N/A
551
3,333
9,384
643
83
43
443
884
884
67,533
16,935
252
4,744
2,075
1,691
64
407
36
7,666
34,899
1,016
1,845
85
N/A
78
483
377
7,982
2,067
210
264
2,721
675
348
9,017
N/A
N/A
487
208
171
51
480
54
125
2,588
506
509
286
2,266
14,795
N/A
547
N/A
590
3,656
8,703
702
96
41
460
904
904
69,492
17,992
254
5,618
2,117
1,912
68
434
35
7,554
35,292
1,016
1,797
90
N/A
80
490
366
7,791
2,106
213
276
2,899
650
409
9,353
N/A
N/A
507
214
171
56
462
58
130
2,486
504
653
311
2,204
15,265
N/A
660
N/A
658
3,905
8,687
700
125
43
487
943
943
72,607
19,749
281
6,513
2,655
2,150
63
464
36
7,587
35,713
1,003
1,723
92
N/A
80
500
368
7,744
2,051
196
152
3,085
659
437
9,462
59
495
507
226
173
105
472
63
137
2,474
508
664
337
1,941
16,198
N/A
831
N/A
680
4,196
9,064
709
137
47
534
947
947
73,235
21,095
291
7,468
2,866
2,286
66
488
42
7,588
34,470
995
1,529
95
N/A
80
495
375
7,392
2,059
177
167
3,167
600
535
9,435
54
497
406
259
157
62
N/A
58
131
2,349
456
667
351
1,922
16,703
N/A
1,065
N/A
692
4,384
9,121
700
139
48
554
967
967
76,206
22,026
297
8,072
2,963
2,385
66
487
43
7,713
34,743
981
1,432
98
N/A
85
510
369
7,154
2,012
166
182
3,345
661
657
9,500
69
501
573
264
153
64
N/A
54
114
2,267
484
765
373
1,910
18,375
N/A
1,415
N/A
699
4,922
9,876
694
152
47
570
1,062
1,062
79,669
22,962
302
8,560
3,164
2,418
66
486
43
7,923
35,163
938
1,209
103
82
106
530
352
7,082
2,039
143
189
3,462
719
587
9,839
63
561
616
278
137
72
N/A
67
111
2,238
510
815
395
1,920
20,373
N/A
1,763
N/A
723
5,404
11,063
632
159
52
577
1,171
1,171
238
TABLE 67
2008
$1,533,877
1,204,570
N/A
16,880
61,286
3,282
N/A
10,154
N/A
1,112,968
101,766
-4,864
N/A
N/A
N/A
198
1,893
3,535
-49,354
-18,531
-2,643
2,436
N/A
-81,538
3,636
255,689
-5,732
6,870
N/A
N/A
-5,707
93
N/A
689
637
-23,273
2,228
15,074
N/A
430
217,849
N/A
N/A
6,834
27,357
120,308
61,081
254
2,922
-15
-892
9,692
9,692
$275,791
606,278
N/A
-32,653
17,495
-1,167
N/A
-3,418
N/A
626,021
-443,035
-18,147
N/A
-151
N/A
-1,561
-4,000
-11,387
-68,351
-32,746
-11,382
-1,755
N/A
-107,691
2,317
-102,257
N/A
-6,117a
40
-1,423
-11,169
125
N/A
-897
-433
-84,149
3,754
17,851
N/A
-3,506
105,561
N/A
35,721b
N/A
2,754
5,430
58,818
226
-612
-453
3,677
6,987
6,987
2009
$271,121
79,056
N/A
47,317
12,074
9,921
N/A
8,572
-150
1,322
166,653
-4,746
N/A
8
N/A
-263
2,419
5,475
6,164
11,935
-1,124
776
N/A
-10,925
5,087
95,059
N/A
N/A
6,689
859
1,120
760
N/A
80
27
-15,858
10,203
7,343
2,324
43,241
13,908
N/A
-35,612
N/A
43,029
32,571
-27,836
1,363
-3
11
385
11,504
11,504
2010
$206,612
-23,621
N/A
58,316
23,797
416
171
18,382
-45
-124,658
218,363
-2,301
N/A
51
N/A
55
5,204
936
-110,856
13,835
-1,424
936
133,942
-29,921
261
152,608
N/A
225
4,807
1,278
-3,684
561
N/A
308
21
-30,938
7,371
4,063
2,608
68,417
-3,092
N/A
-15,115
N/A
-35,950
68,847
-19,604
1,281
-208
318
-2,661
14,962
14,962
2011
$104,907
171,273
N/A
49,995
37,032
-423
432
4,005
107
80,125
-122,470
-6,675
N/A
8
N/A
-536
2,537
-1,709
-125,565
-5,018
-1,489
-1,136
85,666
-41,900
353
-31,962
-53
-9,532
4,380
-1,764
-2,858
351
N/A
-1,040
-103
-11,803
5,843
9,067
-1,228
13,696
49,475
N/A
27,179
N/A
532
33,028
-15,605
1,784
769
536
1,252
6,629
6,629
2012
$910,369
503,929
N/A
56,099
50,697
813
-221
6,869
292
389,380
255,867
236
N/A
16
N/A
161
8,038
3,223
-30,528
-464
-330
37
117,666
-14,020
2,685
125,591
599
-1,017
7,048
3,931
-538
432
N/A
-451
-140
-13,580
652
15,887
166
30,567
136,777
N/A
90,505
N/A
15,832
21,526
6,822
2,468
10
629
-1,015
13,796
13,796
2013
$896,139
476,926
N/A
34,713
64,965
5,394
-305
7,705
-13
364,467
299,064
-2,257
N/A
129
N/A
256
7,439
5,617
-99,007
7,608
-741
2,856
74,644
16,704
-726
203,107
-295
875
4,727
2,610
1,354
1,075
N/A
148
-54
30,744
8,708
5,780
969
26,794
100,080
N/A
-3,842
N/A
2,724
102,980
-4,876
231
-89
1,480
1,472
20,069
20,069
2014
$1,333,658
433,302
4,511b
777
90,035
8,550
341
10,442
292
318,354
617,973
-1,380
N/A
36
-51
676
8,175
7,584
-26,976
3,374
-301
1,164
149,568
43,109
-1,812
310,061
506
-5,553
17,184
1,927
-3
1,288
N/A
896
52
47,685
15,488
20,819
-644
25,102
272,360
N/A
167,834
N/A
7,651
64,505
32,631
3,551
28
-4
-3,835
10,022
10,022
a Year-end
data are not available. Data are for January through September.
are only for October through December.
N/A = not available
Note: Net sales is a calculation of total sales minus total redemptions plus net exchanges. Funds of funds are not included except for France, Italy,
and Luxembourg. Data include home-domiciled funds, except for Hong Kong, the Republic of Korea, and New Zealand, which include home- and
foreign-domiciled funds. Components may not add to the total because of rounding.
Source: International Investment Funds Association
b Data
239
Data Section 7
World
Americas
Argentina
Brazil
Canada
Chile
Costa Rica
Mexico
Trinidad and Tobago
United States
Europe
Austria
Belgium
Bulgaria
Croatia
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Liechtenstein
Luxembourg
Malta
Netherlands
Norway
Poland
Portugal
Romania
Russia
Slovakia
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom
Asia and Pacific
Australia
China
Hong Kong
India
Japan
Korea, Rep. of
New Zealand
Pakistan
Philippines
Taiwan
Africa
South Africa
Appendix A
240
APPENDIX A
The first mutual, or open-end, fund was introduced in Boston in March 1924.
The Massachusetts Investors Trust introduced important innovations to the
investment company concept by establishing a simplified capital structure,
continuous offering of shares, the ability to redeem shares rather than hold
them until dissolution of the fund, and a set of clear investment restrictions
and policies.
The stock market crash of 1929 and the Great Depression that followed
hampered the growth of pooled investments until a succession of landmark
securities laws, beginning with the Securities Act of 1933 and concluding
with the Investment Company Act of 1940, reinvigorated investor confidence.
Renewed investor confidence and many innovations led to relatively steady
growth in industry assets and number of accounts.
Four Principal Securities Laws Govern Investment Companies
The Investment Company Act of 1940
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
241
242
APPENDIX A
More than 1,000 funds, or about 10 percent, have chosen other forms of organization, such as limited
liability partnerships, or other domiciles, such as Ohio or Minnesota.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
243
15%
Maryland
corporations
36%
Massachusetts
business trusts
39%
Delaware
statutory trusts
Number of funds: 10,409
Note: Data include mutual funds that do not report statistical information to the Investment Company Institute and mutual
funds that invest primarily in other mutual funds.
244
For ease of reference, this appendix refers to all directors and trustees as directors and all boards as
boards of directors.
APPENDIX A
Sponsor/
Investment
adviser
Administrator
Board of directors
Independent
public
accountant
Principal
underwriter
Fund
Custodian
Transfer agent
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
245
Shareholders
Like shareholders of other companies, mutual fund shareholders have specific
voting rights. These include the right to elect directors at meetings called
for that purpose and the right to approve material changes in the terms of a
funds contract with its investment adviser, the entity that manages the funds
assets. For example, a funds management fee cannot be increased and a
funds investment objectives or fundamental policies cannot be changed
unless a majority of shareholders vote to approve the increase or change.
Sponsors
Setting up a mutual fund is a complicated process performed by the funds
sponsor, which is typically the funds investment adviser. The fund sponsor
has a variety of responsibilities. For example, it must assemble the group
of third parties needed to launch the fund, including the persons or entities
charged with managing and operating the fund. The sponsor provides officers
and affiliated directors to oversee the fund and recruits unaffiliated persons
to serve as independent directors.
Some of the major steps in the process of starting a mutual fund include
organizing the fund under state law, registering the fund with the SEC as an
investment company pursuant to the Investment Company Act of 1940, and
registering the fund shares for sale to the public pursuant to the Securities
Act of 1933. 3 Unless otherwise exempt from doing so, the fund also must
make filings and pay fees to each state (except Florida) in which the funds
shares will be offered to the public. The Investment Company Act also
requires that each new fund have at least $100,000 of seed capital before
distributing its shares to the public; this capital is usually contributed by the
sponsor or adviser in the form of an initial investment.
246
For more information on the requirements for the initial registration of a mutual fund, see the SECs
Investment Company Registration and Regulation Package, available at www.sec.gov/divisions/
investment/invcoreg121504.htm.
APPENDIX A
Advisers
Investment advisers have overall responsibility for directing the funds
investments and handling its business affairs. The investment advisers have
their own employees, including investment professionals who work on behalf
of the funds shareholders and determine which securities to buy and sell in
the funds portfolio, consistent with the funds investment objectives and
policies. In addition to managing the funds portfolio, the adviser often serves
as administrator to the fund, providing various back-office services. As
noted earlier, a funds investment adviser is often the funds initial sponsor
and its initial shareholder through the seed money invested to create
the fund.
To protect investors, a funds investment adviser and the advisers employees
are subject to numerous standards and legal restrictions, including
restrictions on transactions that may pose conflicts of interest. Like the
mutual fund, investment advisers are required to have their own written
compliance programs that are overseen by CCOs and to establish detailed
procedures and internal controls designed to ensure compliance with all
relevant laws and regulations.
Administrators
A funds administrator handles the many back-office functions for a fund.
For example, administrators often provide office space, clerical and fund
accounting services, data processing, and bookkeeping and internal auditing;
they also may prepare and file SEC, tax, shareholder, and other reports.
Fund administrators also help maintain compliance procedures and internal
controls, subject to oversight by the funds board and CCO.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
247
Principal Underwriters
Investors buy and redeem fund shares either directly through a funds
transfer agent or indirectly through a broker-dealer that is authorized to
sell fund shares. In order to offer a particular funds shares, however, a
broker-dealer must have a sales agreement with the fund. The role of a
funds principal underwriter is to act as the agent for the fund in executing
sales agreements that authorize broker-dealers to offer for sale and sell
fund shares. While principal underwriters must register under the Securities
Exchange Act of 1934 as broker-dealers, they (1) do not operate as fullservice
broker-dealers, (2) typically are not involved in offering or selling fund shares
to retail investors, and (3) do not establish or maintain accounts for retail
investors.
Transfer Agents
Mutual funds and their shareholders rely on the services of transfer agents to
maintain records of shareholder accounts, calculate and distribute dividends
and capital gains, and prepare and mail shareholder account statements,
federal income tax information, and other shareholder notices. Some transfer
agents also prepare and mail statements confirming shareholder transactions
and account balances. Additionally, they may maintain customer service
departments, including call centers, to respond to shareholder inquiries.
Auditors
Auditors certify the funds financial statements. The auditors oversight role is
described more fully on page 260.
248
APPENDIX A
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
249
58 Percent of Mutual Fund Assets Were Held in Tax-Deferred Accounts and TaxExempt Funds
Percentage of assets, year-end 2014
31%
Taxable household
53%
Tax-deferred household
10%
Taxable nonhousehold
5%
Tax-exempt funds
Total mutual fund assets: $15.9 trillion
Note: Components do not add to 100 percent because of rounding.
250
APPENDIX A
Types of Distributions
Mutual funds make two types of taxable distributions to shareholders:
ordinary dividends and capital gains.
Ordinary dividend distributions come primarily from the interest and
dividends earned by the securities in a funds portfolio and net short-term
gains, if any, after expenses are paid by the fund. These distributions must
be reported as dividends on an investors tax return and are taxed at the
investors ordinary income tax rate. A top tax rate of 15 percent is provided for
qualified dividend income received by most taxpayers; the top rate for this
income is 20 percent for certain high-income individuals. Some dividends
paid by mutual funds may qualify for these lower top tax rates.
Long-term capital gains distributions represent a funds net gains, if any,
from the sale of securities held in its portfolio for more than one year. A top
tax rate of 15 percent is provided for most investors long-term capital gains
(however, a 20 percent top tax rate applies to certain high-income individuals
and a lower rate applies to some taxpayers).
Certain high-income individuals also are subject to a 3.8 percent tax on net
investment income (NII). The tax on NII applies to interest, dividends, and
net capital gains, including those received from a mutual fund.
To help mutual fund shareholders understand the impact of taxes on the
returns generated by their investments, the SEC requires mutual funds to
disclose standardized after-tax returns for one-, five-, and 10-year periods.
After-tax returns, which accompany before-tax returns in fund prospectuses,
are presented in two ways:
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
251
Tax-Exempt Funds
Tax-exempt bond funds distribute amounts attributable to municipal bond
interest. These exempt-interest dividends are exempt from federal income
tax and, in some cases, state and local taxes. Tax-exempt money market
funds invest in short-term municipal securities or equivalent instruments and
also pay exempt-interest dividends. Even though income from these funds
generally is tax-exempt, investors must report it on their income tax returns.
Tax-exempt funds provide investors with this information and typically
explain how to handle exempt-interest dividends on a state-by-state basis.
For some taxpayers, portions of income earned by tax-exempt funds also may
be subject to the federal alternative minimum tax.
252
APPENDIX A
Dividend Distributions
Billions of dollars, 20002014
Year
Tax-deferred
household and taxexempt funds
Taxable
household
Taxable
nonhousehold
Total
2000
$75
$87
$24
$186
2001
69
71
22
162
2002
59
43
12
114
2003
58
37
103
2004
66
41
10
117
2005
85
60
20
166
2006
116
89
36
240
2007
145
117
47
309
2008
139
98
38
275
2009
110
62
15
187
2010
112
64
12
188
2011
122
73
12
208
2012
129
80
13
222
2013
124
80
14
217
2014
136
92
16
243
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
253
Year
Tax-deferred
household
Taxable
household
Taxable
nonhousehold
Total
2000
$195
$117
$13
$326
2001
51
16
69
2002
10
16
2003
14
2004
31
21
55
2005
79
43
129
2006
165
78
14
257
2007
262
130
22
414
2008
98
28
132
2009
11
15
2010
23
17
43
2011
39
30
73
2012
59
37
100
2013
145
83
11
239
2014
249
132
17
398
254
APPENDIX A
Transparency
Funds are subject to more extensive disclosure requirements than any
other comparable financial product, such as separately managed accounts,
collective investment trusts, and private pools. The cornerstone of the
disclosure regime for mutual funds and ETFs is the prospectus.4 Mutual
funds and ETFs are required to maintain a current prospectus, which
provides investors with information about the fund, including its investment
objectives, investment strategies, risks, fees and expenses, and performance,
as well as how to purchase, redeem, and exchange fund shares. Importantly,
the key parts of this disclosure with respect to performance information and
fees and expenses are standardized to facilitate comparisons by investors.
Mutual funds and ETFs may provide investors with a summary prospectus
containing key information about the fund, while making more information
available on the Internet and on paper upon request.
Mutual funds and ETFs also are required to make statements of additional
information (SAIs) available to investors upon request and without charge.
The SAI conveys information about the fund that, while useful to some
investors, is not necessarily needed to make an informed investment decision.
For example, the SAI generally includes information about the history of
the fund, offers detailed disclosure on certain investment policies (such as
borrowing and concentration policies), and lists officers, directors, and other
persons who control the fund.
Closed-end funds and UITs also provide investors with extensive disclosure, but under a slightly
different regime that reflects the way shares of these funds trade. Both closed-end funds and UITs file
an initial registration statement with the SEC containing a prospectus and other information related to
the initial offering of their shares to the public.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
255
The prospectus, SAI, and certain other required information are contained in
the funds registration statement, which is filed electronically with the SEC
and is publicly available via the SECs Electronic Data Gathering, Analysis,
and Retrieval (EDGAR) system. Mutual fund and ETF registration statements
are amended at least once each year to ensure that financial statements and
other information do not become stale. 5 These funds also amend registration
statements throughout the year as necessary to reflect material changes to
their disclosure.
In addition to registration statement disclosure, funds provide shareholders
with several other disclosure documents. Shareholders receive audited annual
and unaudited semiannual reports within 60 days after the end and the
midpoint of the funds fiscal year. These reports contain updated financial
statements, a list of the funds portfolio securities,6 managements discussion
of financial performance, and other information current as of the date of the
report.
Following their first and third quarter, funds file an additional form with the
SEC, Form N-Q, disclosing the complete schedule of their portfolio holdings.
Finally, funds annually disclose how they voted on specific proxy issues at
portfolio companies on Form N-PX. Funds are the only shareholders required
to publicly disclose each and every proxy vote they cast. Funds are not
required to mail Form N-Q and Form N-PX to shareholders, but the forms are
publicly available via the SECs EDGAR database.
The combination of prospectuses, SAIs, annual and semiannual shareholder
reports, Form N-Qs, and Form N-PXs provide the investing public, regulators,
media, and other interested parties with far more information on funds
than is available for other types of investments. This information is easily
and readily available from most funds and the SEC. It is also available from
private-sector vendors, such as Morningstar, that are in the business of
compiling publicly available information on funds in ways that might benefit
investors.
Section 10(a)(3) of the Securities Act of 1933 prohibits investment companies that make a continuous
offering of shares from using a registration statement with financial information that is more than 16
months old. This gives mutual funds and ETFs four months after the end of their fiscal year to amend
their registration statements.
6 A fund is permitted to include a summary portfolio schedule in its shareholder reports in lieu of the
complete schedule, provided that the complete portfolio schedule is filed with the SEC and is provided
to shareholders upon request, free of charge. The summary portfolio schedule includes each of the
funds 50 largest holdings in unaffiliated issuers and each investment that exceeds 1 percent of the
funds NAV.
5
256
APPENDIX A
ICI has published several papers on the mutual fund valuation process. For more information, see ICIs
two white papers titled Valuation and Liquidity Issues for Mutual Funds (February 1997 and March 2002)
and two installments of ICIs Fair Value Series, An Introduction to Fair Valuation (2005) and The
Role of the Board (2007). ICI also has a two-volume compendium of SEC releases, staff letters, and
enforcement actions related to the mutual fund valuation process, which is available at www.ici.org/pdf/
pub_11_valuation_volume1.pdf and www.ici.org/pdf/pub_11_valuation_volume2.pdf.
8 The pricing process is also critical for ETFs, although for slightly different reasons. ETFs operate like
mutual funds with respect to transactions with authorized participants that trade with the ETF in large
blocks, often of 50,000 shares or more. The NAV is the price used for these large transactions. Closedend funds are not required to strike a daily NAV, but most do so in order to provide the market with the
ability to calculate the difference between the funds market price and its NAV. That difference is called
the funds premium or discount.
7
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
257
Funds must price their shares at least once every business day at a time determined by the funds
board. Many funds price at 4:00 p.m. eastern time or when the New York Stock Exchange closes.
10 From time to time, natural disasters and other emergencies occur that disrupt fund pricing, but Section
22(e) of the Investment Company Act prohibits funds from suspending redemptions unless the SEC
declares an emergency or the New York Stock Exchange closes or restricts trading. The SEC has not
declared an emergency in more than 20 years. During that period, the NYSE has closed and funds have
suspended redemptions on several occasions, such as during Hurricane Sandy in 2012.
11 Money market funds are held to a stricter standard, and must limit illiquid investments to 5 percent of
the portfolio.
9
258
APPENDIX A
Fund Boards
Mutual funds, closed-end funds, and most ETFs have boards. The role of a
funds board of directors is primarily one of oversight. The board of directors
typically is not involved in the day-to-day management of the fund company.
Instead, day-to-day management is handled by the funds investment adviser
or administrator pursuant to a contract with the fund.
Investment company directors review and approve major contracts with
service providers (including, notably, the funds investment adviser), approve
policies and procedures to ensure the funds compliance with federal
securities laws, and undertake oversight and review of the performance of
the funds operations. Directors devote substantial time and consider large
amounts of information in fulfilling these duties, in part because they must
perform all their duties in an informed and deliberate manner.
Fund boards must maintain a particular level of independence. The
Investment Company Act of 1940 requires at least 40 percent of the members
of a fund board to be independent from fund management. An independent
director is a fund director who does not have any significant business
relationship with a mutual funds adviser or underwriter. In practice, most
fund boards have far higher percentages of independent directors. As of
year-end 2012, independent directors made up three-quarters of boards in
approximately 85 percent of fund complexes.12
Independent fund directors play a critical role in overseeing fund operations
and are entrusted with the primary responsibility for looking after the
interests of the funds shareholders. They serve as watchdogs, furnishing an
independent check on the management of funds. Like directors of operating
companies, they owe shareholders the duties of loyalty and care under
state law. But independent fund directors also have specific statutory and
regulatory responsibilities under the Investment Company Act beyond the
duties required of other types of directors. Among other things, they oversee
the performance of the fund, approve the fees paid to the investment adviser
for its services, and oversee the funds compliance program.
12
See Overview of Fund Governance Practices, 19942012 for a description of the study that collects data
on this and other governance practices. Available at www.idc.org/pdf/pub_13_fund_governance.pdf.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
259
Compliance Programs
The internal oversight function played by the board has been greatly
enhanced in recent years by the development of written compliance programs
and a formal requirement that all funds have CCOs. Rules adopted in 2003
require every fund and adviser to have a CCO who administers a written
compliance program reasonably designed to prevent, detect, and correct
violations of the federal securities laws. Compliance programs must be
reviewed at least annually for their adequacy and effectiveness, and fund
CCOs are required to report directly to the independent directors.
Regulatory Oversight
Internal oversight is accompanied by a number of forms of external oversight
and accountability. Funds are subject to inspections, examinations, and
enforcement by their primary regulator, the SEC. Fund underwriters and
distributors also are overseen by FINRA, a self-regulatory organization. Funds
affiliated with a bank may additionally be overseen by banking regulators. All
funds are subject to the antifraud jurisdiction of each state in which the funds
shares are offered for sale or sold.
Auditors
A funds financial statement disclosure is also subject to several internal
and external checks. For example, annual reports include audited financial
statements certified by a certified public accounting firm subject to oversight
by the Public Company Accounting Oversight Board (PCAOB). This ensures
that the financial statements are prepared in conformity with generally
accepted accounting principles (GAAP) and fairly present the funds financial
position and results of operations.
Sarbanes-Oxley Act
Like officers of public companies, fund officers are required to make
certifications and disclosures required by the Sarbanes-Oxley Act. For
example, they must certify the accuracy of the financial statements.
260
APPENDIX A
Limits on Leverage
The inherent nature of a funda professionally managed pool of securities
owned pro rata by its investorsis straightforward and easily understood
by investors. The Investment Company Act of 1940 fosters simplicity by
prohibiting complex capital structures and limiting funds use of leverage.
The Investment Company Act imposes various requirements on the capital
structure of mutual funds, closed-end funds, and ETFs, including limitations
on the issuance of senior securities and borrowing. These limitations greatly
minimize the possibility that a funds liabilities will exceed the value of its
assets.
Generally speaking, a senior security is any debt that takes priority over
the funds shares, such as a loan or preferred stock. The SEC historically has
interpreted the definition of senior security broadly, taking the view that
selling securities short, purchasing securities on margin, and investing in
many types of derivative instruments, among other practices, may create
senior securities.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
261
The SEC also takes the view that the Investment Company Act prohibits a
fund from creating a future obligation to pay unless it covers the obligation.
A fund generally can cover an obligation by owning the instrument underlying
that obligation. For example, a fund that wants to take a short position in a
certain stock can comply with the Investment Company Act by owning an
equivalent long position in that stock. The fund also can cover by earmarking
or segregating liquid securities equal in value to the funds potential exposure
from the leveraged transaction. The assets set aside to cover the potential
future obligation must be liquid, unencumbered, and marked-to-market daily.
They may not be used to cover other obligations and, if disposed of, must be
replaced.
The Investment Company Act also limits borrowing. With the exception of
certain privately arranged loans and temporary loans, any promissory note
or other indebtedness would generally be considered a prohibited senior
security.13 Mutual funds and ETFs are permitted to borrow from a bank if,
immediately after the bank borrowing, the funds total net assets are at least
three times total aggregate borrowings. In other words, the fund must have
at least 300 percent asset coverage.
Closed-end funds have a slightly different set of limitations. They are
permitted to issue debt and preferred stock, subject to certain conditions,
including asset coverage requirements of 300 percent for debt and 200
percent for preferred stock.
Many funds voluntarily go beyond the prohibitions in the Investment
Company Act, adopting policies that further restrict their ability to issue
senior securities or borrow. Funds often, for example, adopt a policy stating
that they will borrow only as a temporary measure for extraordinary or
emergency purposes and not to finance investment in securities. In addition,
they may disclose that, in any event, borrowings will be limited to a small
percentage of fund assets (such as 5 percent). These are meaningful
voluntary measures, because under the Investment Company Act, a funds
policies on borrowing money and issuing senior securities cannot be changed
without the approval of fund shareholders.
13
262
Temporary loans cannot exceed 5 percent of the funds total net assets and must be repaid within 60
days.
APPENDIX A
Custody
To protect fund assets, the Investment Company Act requires all funds
to maintain strict custody of fund assets, separate from the assets of the
adviser. Although the Act permits other arrangements,14 nearly all funds use a
bank custodian for domestic securities. International securities are required to
be held in the custody of an international bank or securities depository.
A funds custody agreement with a bank is typically far more elaborate
than the arrangements used for other bank clients. The custodians services
generally include safekeeping and accounting for the funds assets, settling
securities transactions, receiving dividends and interest, providing foreign
exchange services, paying fund expenses, reporting failed trades, reporting
cash transactions, monitoring corporate actions at portfolio companies, and
tracing loaned securities.
The strict rules on the custody and reconciliation of fund assets are designed
to prevent theft and other fraud-based losses. Shareholders are further
insulated from these types of losses by a provision in the Investment
Company Act that requires all mutual funds to have fidelity bonds
designed to protect them against possible instances of employee larceny or
embezzlement.
14
The Investment Company Act contains six separate custody rules for the possible types of custody
arrangements for mutual funds, closed-end funds, and ETFs. UITs are subject to a separate rule that
requires the use of a bank to maintain custody. See section 17(f) of the Investment Company Act of 1940
and SEC Rules 17f-1 through 17f-7 thereunder.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
263
Diversification
Both tax and securities law provide diversification standards for funds
registered under the Investment Company Act. As discussed in detail above,
under the tax laws, all mutual funds, closed-end funds, and ETFs, as well
as most UITs, qualify as RICs and, as such, must meet a tax diversification
test every quarter. The effect of this test is that a fund with a modest cash
position and no government securities would hold securities from at least 12
different issuers. Another tax diversification restriction limits the amount of
an issuers outstanding voting securities that a fund may own.
15
264
See Protecting Investors: A Half Century of Investment Company Regulation, Report of the Division of
Investment Management, Securities and Exchange Commission (May 1992), available at www.sec.gov/
divisions/investment/guidance/icreg50-92.pdf. The Division of Investment Management is the division
within the SEC responsible for the regulation of funds.
APPENDIX A
The securities laws set higher standards for funds that elect to be diversified.
If a fund elects to be diversified, the Investment Company Act requires that,
with respect to at least 75 percent of the portfolio, no more than 5 percent
may be invested in the securities of any one issuer and no investment may
represent more than 10 percent of the outstanding voting securities of any
issuer. Diversification is not mandatory, but all mutual funds, closed-end
funds, and ETFs must disclose whether or not they are diversified under the
Acts standards.
In practice, most funds that elect to be diversified are much more highly
diversified than they need to be to meet these two tests. As of December
2014, for example, the median number of stocks held by U.S. equity funds
was 98.16
16
This number is the median among U.S. actively managed and index equity funds, excluding sector
funds.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
265
Appendix B
Dutch merchant and broker Adriaan van Ketwich invites subscriptions from
investors to form a trust, the Eendragt Maakt Magt, with the aim of providing
investment diversification opportunities to investors of limited means.
1868
The Foreign and Colonial Government Trust, the precursor to the U.S. investment
fund model, is formed in London. This trust provides the investor of moderate
means the same advantages as large capitalists.
1924
1933
The Securities Act of 1933 regulates the registration and offering of new securities,
including mutual fund and closed-end fund shares, to the public.
1934
The Securities Exchange Act of 1934 authorizes the Securities and Exchange
Commission (SEC) to provide for fair and equitable securities markets.
1936
The Revenue Act of 1936 establishes the tax treatment of mutual funds and their
shareholders. Closed-end funds were covered by the Act in 1942.
1940
The Investment Company Act of 1940 is signed into law, setting the structure and
regulatory framework for registered investment companies.
The forerunner to the National Association of Investment Companies (NAIC) is
formed. The NAIC will become the Investment Company Institute.
1944
1951
The total number of mutual funds surpasses 100, and the number of shareholder
accounts exceeds one million for the first time.
1954
Households net purchases of fund shares exceed those of corporate stock. NAIC
initiates a nationwide public information program emphasizing the role of investors
in the U.S. economy and explaining the concept of investment companies.
1955
1961
The first tax-free unit investment trust is offered. The NAIC changes its name to the
Investment Company Institute (ICI) and welcomes fund advisers and underwriters
as members.
266
APPENDIX B
1962
1971
1974
The Employee Retirement Income Security Act (ERISA) creates the individual
retirement account (IRA) for workers not covered by employer-sponsored
retirement plans.
1976
The Tax Reform Act of 1976 permits the creation of municipal bond funds. The first
retail index fund is offered.
1978
The Revenue Act of 1978 creates new Section 401(k) retirement plans and simplified
employee pensions (SEPs).
1981
The Economic Recovery Tax Act establishes universal IRAs for all workers. IRS
proposes regulations for Section 401(k).
1986
1987
1990
1993
1996
1997
The Taxpayer Relief Act of 1997 creates the Roth IRA and eliminates restrictions on
portfolio management that disadvantage fund shareholders.
1998
The SEC approves the most significant disclosure reforms in the history of U.S.
mutual funds, encompassing plain English, fund profiles, and improved risk
disclosure.
1999
267
2001
Enactment of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of
2001 significantly expands retirement savings opportunities for millions of working
Americans.
2003
The Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) provides mutual fund
shareholders with the full benefits of lower tax rates on dividends and capital gains.
2006
Enactment of the Pension Protection Act (PPA) and the Tax Increase Prevention and
Reconciliation Act provides incentives for investors of all ages to save more in taxdeferred and taxable investment accounts.
2008
2009
Money market fund assets hit $3.9 trillion, their highest level to date.
The Money Market Working Group, a task force of senior industry executives,
submits its report to the ICI Board. The Board endorses the Working Groups call for
immediate implementation of new regulatory and oversight standards for money
market funds.
2010
The SEC adopts new rules and amendments to regulations governing money market
funds.
In Jones v. Harris, the U.S. Supreme Court unanimously upholds the Gartenberg
standard under which courts have long considered claims of excessive fund
advisory fees.
Enactment of the RIC Modernization Act streamlines and updates technical tax
rules, benefiting shareholders by making funds more efficient.
2011
In Business Roundtable et al. v. SEC, the United States Court of Appeals for the
District of Columbia Circuit vacated the SECs proxy access rule for failing to
adequately evaluate the rules costs and benefits.
ICI Globalthe first industry body exclusively advancing the perspective of global
investment fundsis formed.
2014
268
The SEC adopted sweeping changes to the rules that govern money market funds,
building upon the changes to money market fund regulation adopted by the SEC in
2010.
APPENDIX B
Glossary
adviser. An organization employed by a mutual fund to give professional advice on the funds
investments and asset management practices. Also known as investment adviser.
after-tax return. The total return of a fund after the effects of taxes on distributions and/
or redemptions have been assessed. Funds are required by federal securities law to calculate
after-tax returns using standardized formulas based upon the highest tax rates. (Consequently,
they are not representative of the after-tax returns of most mutual fund shareholders.) These
standardized after-tax returns are not relevant for shareholders in tax-deferred retirement
accounts.
aggressive. An investment approach that accepts above-average risk of loss in return for
potentially above-average investment returns. Contrast conservative.
annual report. A report that a fund sends to its shareholders that discusses the funds
performance over the past fiscal year and identifies the securities in the funds portfolio on
the last business day of the funds fiscal year. The annual report includes audited financial
statements. See also semiannual report.
appreciation. An increase in an investments value. Contrast depreciation.
asset allocation. The proportion of different investment classessuch as stocks, bonds, and
cash equivalentsthat investors hold in their portfolios.
asset class. A group of securities or investments that have similar characteristics and behave
similarly in the marketplace. Three common asset classes are equities (e.g., stocks), fixed
income (e.g., bonds), and cash equivalents (e.g., money market funds).
assets. Securities, cash, and receivables owned by a fund.
authorized participant. An entity, usually an institutional investor, that submits orders to the
exchange-traded fund (ETF) for the creation and redemption of ETF creation units.
automatic reinvestment. A fund service giving shareholders the option to purchase
additional shares using dividend and capital gains distributions.
average portfolio maturity. The average maturity of all the securities in a bond or money
market funds portfolio.
back-end load. See contingent deferred sales load (CDSL).
balanced fund. A fund with an investment objective of both long-term growth and income, to
be achieved through investment in stocks and bonds.
basis point. One one-hundredth of 1 percent (0.01 percent); thus, 100 basis points equals 1
percentage point. When applied to $1.00, 1 basis point is $0.0001; 100 basis points equals one
cent ($0.01). Basis points are often used to simplify percentages written in decimal form.
GLOSSARY
269
bear market. A period during which the majority of securities prices in a particular market
(such as the stock market) drop substantially. One generally accepted measure is a price
decline of 20 percent or more over at least a two-month period. Contrast bull market.
benchmark. A standard against which the performance of a security or a mutual fund can be
measured. For example, Barclays Capital Aggregate Bond Index is a benchmark index for many
bond mutual funds. Many equity mutual funds are benchmarked to the S&P 500 index. See also
index.
bond. A debt security issued by a company, municipality, or government agency. A bond
investor lends money to the issuer and, in exchange, the issuer promises to repay the loan
amount on a specified maturity date; the issuer usually pays the bondholder periodic interest
payments over the life of the loan.
bond fund. A fund that invests primarily in bonds and other debt instruments.
breakpoints. The dollar amounts at which many mutual funds offer reduced fees to investors.
There are two kinds of breakpoints. One kind is a reduction in sales charges (load fees)
to investors when they initially purchase fund shares. The amount of the discount varies,
depending upon the amount of the investment: the more invested, the greater the likelihood
of surpassing a breakpoint and thus receiving a discount. The other kind of breakpoint is a
reduction in management fees that fund advisers may charge their associated funds as fund
assets surpass a given level.
break the dollar. A phrase used to describe when the net asset value (NAV) of a money
market fund is repriced from its stable $1.00 NAV, an event that could be triggered by a
deviation greater than one-half of 1 percent (one-half cent, or $0.0050) between the funds
mark-to-market value (shadow price) and its stable $1.00 NAV. Also known as break the buck.
broker. See broker-dealer.
broker-dealer. A broker is a person or company engaged in the business of effecting
transactions in securities for the account of others, and is often paid by commission. A dealer is
any person or company engaged in the business of buying and selling securities for their own
account. A broker-dealer is a firm that acts as both a broker and a dealer.
bull market. A period during which a majority of securities prices in a particular market (such
as the stock market) rise substantially. Contrast bear market.
capital gain. An increase in the value of an investment, calculated by the difference between
the net purchase price and the net sale price. Contrast capital loss.
capital gains distributions. Profits distributed to shareholders resulting from the sale of
securities held in the funds portfolio.
capital loss. A decline in the value of an investment, calculated by the difference between the
net purchase price and the net sale price. Contrast capital gain.
270
GLOSSARY
GLOSSARY
271
272
GLOSSARY
GLOSSARY
273
529 plan. An investment program, offered by state governments, designed to help pay future
qualified higher education expenses. States offer two types of 529 plans: prepaid tuition
programs allow contributors to establish an account in the name of a student to cover the cost
of a specified number of academic periods or course units in the future at current prices; and
college savings plans allow individuals to contribute to an investment account to pay for a
students qualified higher education expenses.
fixed-income securities. Securities that pay a fixed rate of return in the form of interest or
dividend income.
forward pricing. The concept describing the price at which mutual fund shareholders buy or
redeem fund shares. Shareholders must receive the next computed share price following the
funds receipt of a shareholder transaction order.
457 plan. An employer-sponsored retirement plan that enables employees of state and local
governments and other tax-exempt employers to make tax-deferred contributions from their
salaries to the plan.
401(k) plan. An employer-sponsored retirement plan that enables employees to make taxdeferred contributions from their salaries to the plan. See also defined contribution plan.
403(b) plan. An employer-sponsored retirement plan that enables employees of universities,
public schools, and nonprofit organizations to make tax-deferred contributions from their
salaries to the plan. See also defined contribution plan.
front-end load. A fee imposed by some funds at the point of purchase to cover selling costs.
fund family. A group or complex of mutual funds, each typically with its own investment
objective, that is managed and distributed by the same company.
funds of funds. Mutual funds that primarily hold and invest in shares of other mutual funds
rather than investing directly in individual securities.
fund supermarket. A brokerage platform that provides access to funds from a wide range of
fund families.
government securities. Any debt obligation issued by a government or its agencies (e.g.,
Treasury bills issued by the United States). See also U.S. Treasury securities.
growth and income fund. A fund that has a dual strategy of capital appreciation (growth)
and current income generation through dividends or interest payments.
growth fund. A fund that invests primarily in the stocks of companies with above-average risk
in return for potentially above-average gains. These companies often pay small or no dividends
and their stock prices tend to be more volatile from day to day.
hedge fund. A private investment pool for qualified (typically wealthy) investors that, unlike a
mutual fund, is exempt from SEC registration.
hybrid fund. A mutual fund that invests in a mix of equity and fixed-income securities.
274
GLOSSARY
income distributions. Dividends, interest, and/or short-term capital gains paid to a mutual
funds shareholders. Operating expenses are deducted from income before it is distributed to
shareholders.
income fund. A fund that primarily seeks current income generation rather than capital
appreciation.
independent director. A fund director or trustee who does not have any significant business
relationship with a mutual funds adviser or underwriter. An independent director better
enables the fund board to provide an independent check on the funds management. See also
director and trustee.
index. A portfolio of securities that tracks the performance of a particular financial market
or subset of it (e.g., stock, bond, or commodity markets) and serves as a benchmark against
which to evaluate a funds performance. The most common index for equity funds is the S&P
500. See also benchmark.
index mutual fund. A fund designed to track the performance of a market index. The funds
portfolio of securities is either a replicate or a representative sample of the designated market
index. Often referred to as passively managed portfolios.
individual retirement account (IRA). A tax-deferred account set up by or for an individual
to hold and invest funds for retirement.
inflation. The overall general upward price movement of goods and services in an economy,
generally as a result of increased spending that exceeds the supply of goods on the market.
Inflation is one of the major risks to investors over the long term because it erodes the
purchasing power of their savings.
inflation risk. The risk that the purchasing power of the future value of assets or income will
be lower due to inflation.
initial public offering (IPO). A corporations or closed-end funds first offering of stock or
fund shares to the public.
institutional investor. The businesses, nonprofit organizations, and other similar investors
who own funds and other securities on behalf of their organizations. This classification of
investors differs from individual or household investors who own the majority of investment
company assets.
interest/interest rate. The fee charged by a lender to a borrower, usually expressed as an
annual percentage of the principal.
interest rate risk. Risk of gain or loss on a security due to possible changes in interest-rate
levels. When interest rates rise, the market value of a debt security will fall, and vice versa.
intraday indicative value (IIV). A real-time estimate of an exchange-traded funds (ETF)
intraday value. Third-party providers calculate and disseminate this measure every 15 to 60
seconds during securities market trading hours.
GLOSSARY
275
276
GLOSSARY
market value. The price at which a security was last traded or a price based on its current ask
or bid prices.
maturity. The date by which an issuer promises to repay a bonds face value.
money market. The global financial market for short-term borrowing and lending where
short-term instruments such as Treasury bills (T-bills), commercial paper, and repurchase
agreements are bought and sold.
money market fund. A mutual fund that invests in short-term, high-grade, fixed-income
securities, and seeks the highest level of income consistent with preservation of capital (i.e.,
maintaining a stable share price).
MuniFund Term Preferred (MTP) shares. Exchange-listed closed-end fund preferred shares
that have a fixed dividend rate set at the time of issuance. MTP shares have a mandatory
redemption period (usually five years) unless they are redeemed or repurchased earlier by the
fund. Unlike fixed-rate preferred stock previously issued, MTP shares were created for issuance
by closed-end funds investing in municipal bonds.
mutual fund. An investment company registered with the SEC that buys a portfolio of
securities selected by a professional investment adviser to meet a specified financial goal
(investment objective). Mutual funds can have actively managed portfolios, in which a
professional investment adviser creates a unique mix of investments to meet a particular
investment objective, or passively managed portfolios, in which the adviser seeks to track
the performance of a selected benchmark or index. One hallmark of mutual funds is that they
issue redeemable securities, meaning that the fund stands ready to buy back its shares at their
current net asset value (NAV). See also open-end investment company.
net asset value (NAV). The per-share value of an investment company, calculated by
subtracting the funds liabilities from the current market value of its assets and dividing by the
number of shares outstanding. Mutual funds calculate their NAVs at least once daily.
net new cash flow. The dollar value of new sales minus redemptions, plus net exchanges.
A positive number indicates new sales plus exchanges into funds exceeded redemptions plus
exchanges out of funds. A negative number indicates redemptions plus exchanges out of funds
exceeded new sales plus exchanges into funds.
no-load fund. A mutual fund whose shares are sold without a sales commission and without a
12b-1 fee of more than 0.25 percent per year.
open-end investment company. The legal name for a mutual fund, indicating that it stands
ready to redeem (buy back) its shares from investors.
operating expenses. Business costs paid from a funds assets. These include management
fees, 12b-1 fees, and other expenses.
payroll deduction plan. An arrangement that some employers offer where employees can
authorize their employer to deduct a specified amount from their salaries at stated times to
buy mutual fund shares.
GLOSSARY
277
pooled investing. The basic concept behind mutual funds in which a fund aggregates the
assets of investors who share common financial goals. A fund uses the pooled assets to buy
a diversified portfolio of investments, and each mutual fund share purchased represents
ownership in all the funds underlying securities.
portfolio. A collection of securities owned by an individual or an institution (such as a mutual
fund) that may include stocks, bonds, money market instruments, and other securities.
portfolio manager. A specialist employed by a mutual funds adviser to invest the funds
assets in accordance with predetermined investment objectives.
portfolio turnover rate. A measure of how frequently securities are bought and sold within a
fund during a year. The portfolio turnover rate usually is expressed as a percentage of the total
value of a fund.
prepayment risk. The possibility that a bond owner will receive his or her principal
investment back from the issuer prior to the bonds maturity date.
principal. See face value.
prospectus. The official document that describes an investment company to prospective
investors. The prospectus contains information required by the SEC, such as investment
objectives and policies, risks, services, and fees.
puttable preferred stock. See Variable Rate Demand Preferred (VRDP) shares.
redeem. To sell mutual fund shares back to the fund. Mutual fund shares may be redeemed on
any business day. An investor receives the next computed share price, called net asset value
(NAV), minus any deferred sales charge or redemption fee.
redemption price. The amount per share that mutual fund shareholders receive when they
redeem.
registered investment company. A company that is required to register as an investment
company with the SEC under the Investment Company Act of 1940 and is also required to
register the public offering of its shares under the Securities Act of 1933. The definition of
investment company in the Investment Company Act of 1940 generally includes any company
that is engaged primarily in the business of investing, reinvesting, or trading in securities.
regulated investment company (RIC). An investment company or trust eligible under
subchapter M of the Internal Revenue Code to eliminate tax at the fund level by distributing
all of its taxable income to its shareholders. The funds income thus is taxed only once, at the
investor level. To qualify as a RIC, a corporation must be registered at all times during the
taxable year under the Investment Company Act of 1940 and must derive at least 90 percent
of its income from certain sources, including dividends, interest, and capital gains. It also must
distribute at least 90 percent of the dividends and interest received. Mutual funds and closedend funds are both regulated investment companies.
reinvestment privilege. An option whereby shareholders may elect to use dividend and
capital gains distributions to automatically buy additional fund shares.
278
GLOSSARY
repurchase agreements. A form of short-term funding for dealers. The dealer sells the
securities to investors, usually on an overnight basis, and buys them back at a higher price
reflecting the cost of funding. Also known as a repo.
required minimum distribution (RMD). Minimum distribution rules require that beginning
at age 70, the entire amount of a traditional IRA or 401(k) account be distributed over the
expected life of the individual (or the joint lives of the individual and designated beneficiary).
Distributing less than the required amount will result in a tax penalty. Roth IRAs are not subject
to required minimum distributions during the account holders lifetime.
return. The gain or loss of a security in a particular period. It is usually quoted as a percentage.
RIC. See regulated investment company.
risk. The degree of uncertainty associated with the return on an asset.
risk/return tradeoff. The principle that an investment must offer a higher expected return as
compensation for the likelihood of higher volatility in returns.
risk tolerance. An investors willingness to lose some or all of an investment in exchange for
greater potential returns.
rollover. The transfer of an investors assets from one qualified retirement plan (including an
IRA) to anotherdue to changing jobs, for instancewithout a tax penalty.
Roth 401(k) plan account. A type of account within a 401(k) plan to which after-tax
contributions are made, and from which qualified distributions of contributions and earnings
are tax free.
Roth IRA. An individual retirement plan, first available in 1998, that permits only after-tax
contributions; earnings are not taxed, and qualified distributions of earnings and principal are
generally tax-free.
sales charge. An amount charged for the sale of some fund shares, usually those sold by
brokers or other sales professionals. By regulation, mutual fund sales charges are capped. The
charge may vary depending on the amount invested and the fund chosen. Also known as the
load.
SAR-SEP IRA (salary reduction simplified employee pension). A SEP IRA with a salary
reduction feature (see SEP IRA). The Small Business Job Protection Act of 1996, which created
SIMPLE IRAs, prohibited the formation of new SAR-SEP IRAs, which were created in 1986.
secondary market. Market in which an investor purchases or sells certain investment
company shares (closed-end, UIT, and ETF) from another investor through an intermediary
such as a broker-dealer.
sector fund. A fund that invests in a particular or specialized segment of the marketplace,
such as stocks of companies in the software, healthcare, or real estate industries.
Securities and Exchange Commission (SEC). The primary U.S. government agency
responsible for the regulation of the day-to-day operations and disclosure obligations of
registered investment companies.
GLOSSARY
279
280
GLOSSARY
GLOSSARY
281
12b-1 fee. A mutual fund fee, named for the SEC rule that permits it, used to pay distribution
costs such as compensation to financial advisers for initial and ongoing assistance. If a fund has
a 12b-1 fee, it will be disclosed in the fee table of a funds prospectus.
underwriter. A mutual fund underwriter enters into sales agreements with retail distributors
(e.g., broker-dealers) of the mutual fund. To sell fund shares, a retail distributor must have
executed a contract with a fund or its principal underwriter, which authorizes the distributor to
offer and sell fund shares to the public. Generally speaking, a funds underwriter is not involved
in the offer or sale of fund shares to investors.
unit investment trust (UIT). A type of fund with some characteristics of mutual funds and
some of closed-end funds. Like mutual funds, UITs issue redeemable shares. Like closedend funds, however, UITs typically issue only a specific, fixed number of shares. A UIT does
not actively trade its investment portfolio, instead buying and holding a set of particular
investments until a set termination date, at which time the trust is dissolved and proceeds are
paid to shareholders.
U.S. Treasury securities. Debt securities issued by the U.S. government and secured by
its full faith and credit. Treasury securities are the debt financing instruments of the U.S.
federal government, and they are often referred to simply as Treasuries. There are four types
of Treasury securities: Treasury bills, Treasury bonds, Treasury notes, and Treasury inflation
protected securities (TIPS). See also Treasury bill.
variable annuity. An investment contract sold by an insurance company. Capital is
accumulated, often through mutual fund investments, with the option to convert to an income
stream in retirement.
Variable Rate Demand Preferred (VRDP) shares. A type of puttable preferred stock that is
similar to auction market preferred stock (AMPS) in that they pay dividends at variable rates,
and sell orders are filled to the extent there are bids. Rates are set through remarketings,
and if there are more sell orders than bids, a third party (commonly referred to as a liquidity
provider) purchases the VRDP shares.
withdrawal plan. A fund service allowing shareholders to receive income or principal
payments from their fund account at regular intervals.
yield. A measure of income (dividends and interest) earned by the securities in a funds
portfolio less the funds expenses during a specified period. A funds yield is expressed as a
percentage of the maximum offering price per share on a specified date.
yield curve. The graphical depiction of the relationship between the yield on bonds of
the same credit quality but different maturities. The most frequently reported yield curve
compares the yields on three-month, two-year, five-year, and 30-year U.S. Treasury securities.
This yield curve is used as a benchmark for other debt in the market, such as mortgage rates or
bank lending rates.
282
GLOSSARY
Index
A page number with an f indicates a figure; an n indicates a note; a t indicates a table. Page numbers in bold indicate a definition.
12b-1 fees, 92, 98, 102, 103, 105, 282
advisers (continued)
age demographics
aggressive, 269
target date funds in, 144f, 145, 146f, 14849, 148f, 164f
annuities, 75, 75f, 88, 88f, 137, 137f, 151f. See also variable
annuities
appreciation, 269
assets, 269
A
accountants, 122, 122f, 123f, 245f
actively managed domestic equity funds, 18, 47
B
Baby Boom Generation, 117, 117f
advisers, 269
compensation of, 104, 105
INDEX
283
banks
tax-exempt, 252
as custodians, 263
bond index funds, 45, 45f, 46f, 97f, 99f, 219t, 220t, 221t,
222t
benchmark, 270
blend funds, 224t, 225t
bond market, 32
bond closed-end funds, 79f, 8283, 82f, 83f, 86, 181t, 182t
bond ETFs, 67f, 70, 70f, 71, 71f, 183t, 184t, 185t
BrightScope, 142
184t, 185t
broker, 270
corporate, 38
C
capital appreciation equity funds
exchange redemptions, 197t
exchange sales, 195t
liquidity, 188t
net new cash flow, 193t
new sales, 194t
number of funds, 178t
number of share classes, 180t
redemptions, 196t
total net assets, 176t
capital gain, 270
capital gains distributions, 10, 251, 252, 254, 254f, 270
capital gains paid and reinvested, 202t
capital loss, 252, 270
short-term, 38
284
INDEX
common shares, 80
creation of, 80
D
default, 272
defined benefit (DB) plans, 132, 135, 136f, 13739, 137f,
138f, 139f, 153, 272. See also pension funds
defined contribution (DC) plans, 272. See also 401(k) plans;
403(b) plans; 457 plans; Keoghs; Thrift Savings Plan
asset location, 122f
assets, 141, 141f
characteristics, 141
household investments in, 11f, 12, 13f, 136f, 13740,
139f, 140f
IRA rollovers from, 153
lifestyle funds in, 164f
mutual fund assets in, 12, 12021, 121f, 124, 124f,
16062, 161f, 162f
mutual fund fees, 104, 108
owner demographics, 129, 129f, 136f, 13940, 140f
percentage of retirement assets in, 131f
purchase sources, 122f, 123f
retirement resource pyramid and, 132, 135, 136f
target date funds in, 41, 164f
U.S. assets, 13740, 137f, 138f, 140f
Delaware statutory trusts, 24344, 244f
demographics. See also age demographics
commodity markets, 70
conservative, 271
depreciation, 272
bond funds
disclosure, 25556
distributions, 272
285
distributions (continued)
from IRAs, 15860, 158f, 159f
diversification, 36, 26465, 272
dividend, 272
domestic equity ETFs, 47, 47f, 67f, 7071, 70f, 71f, 183t,
184t, 185t
domestic equity funds
401(k) investment options, 144
actively managed, 18, 47
equity, 273
assets, 8, 10
trends in, 18
domestic equity index funds, 18, 4547, 45f, 46f, 47f, 219t,
220t, 221t, 222t
182t
domestic sector equity ETFs, 70, 70f, 71f, 73, 74f, 183t,
184t, 185t
domestic taxable bond closed-end funds, 82f, 83f, 181t,
182t
E
economic climate, 1819, 26, 28, 30, 3132, 43, 126f, 140
Economic Growth and Tax Relief Reconciliation Act
(EGTRRA), 165
EDGAR (Electronic Data Gathering, Analysis, and
Retrieval) system, 256
286
INDEX
liquidity, 257
redemptions, 64, 65
euro-denominated securities, 8
sector, 73
sponsors, 56, 61
arbitrage opportunities, 65
transparency, 59, 64
domestic sector equity, 70, 70f, 71f, 73, 74f, 183t, 184t,
185t
history, 5859
INDEX
274
287
G
Generation X, 117, 117f
GICs (guaranteed investment contracts), 144, 144f, 145,
146f
GI Generation, 117, 117f
global economic climate, 28, 30, 32, 34, 34f
global equity funds, 34, 34f
global/international closed-end funds, 82f, 83f, 181t, 182t
global/international equity ETFs, 70, 70f, 71, 71f, 183t,
184t, 185t
government agency securities, 14f, 15, 5253, 53f, 212t,
213t
government bond funds
exchange redemptions, 197t
exchange sales, 195t
liquidity, 188t
investment goals and, 28, 33, 113, 115f, 119, 133, 134f,
165
mutual funds, 1112, 11f, 12f, 13f, 2829, 30f, 33, 88f,
89f, 95, 11419, 114f, 115f, 124, 124f
Greece, 32
housing market, 31
146f
H
health sector funds, 228t, 229t
hedge funds, 274
high-yield bond funds
ETF, 66, 67f
exchange redemptions, 197t
exchange sales, 195t
floating-rate, 216t
liquidity, 188t
net new cash flow, 193t
new sales, 194t
number of funds, 178t
288
net new cash flow, 26, 30, 31f, 33, 35f, 42, 42f,
189t, 191t, 193t, 226t, 227t
characteristics, 150
hybrid index funds, 45, 45f, 46f, 97f, 219t, 220t, 221t, 222t
I
IIV (intraday indicative value), 64, 275
income distributions, 275. See also distributions, dividend
income funds, 275
income of mutual fund investors. See demographics
independent directors, 25859, 275
independent financial planners, 122, 122f, 123f
independent fund advisers, 15, 15f
index, 275
index bond funds. See bond index funds
index equity funds. See equity index funds
index ETFs, 47, 47f, 58, 61, 72, 183t, 184t, 185t
index mutual funds, 275. See also bond index funds;
equity index funds
assets, 26, 45, 45f
asset share at largest complexes, 18
domestic equity, 18, 4547, 45f, 46f, 47f, 219t, 220t,
221t, 222t
exchange sales, 221t
expenses and fees, 9799, 97f, 99f
hybrid, 45, 45f, 97f
hybrid and bond, 219t, 220t, 221t, 222t
net cash flows, 18
net new cash flow, 45, 45f, 219t
new sales, 221t
number of funds, 97f, 220t
number of share classes, 220t
redemptions and exchange redemptions, 222t
S&P 500, 219t, 220t, 221t, 222t
total net assets, 45, 46f, 97f, 219t
trends, 26, 4547, 45f, 46f, 47f, 9799, 97f, 99f
world equity, 45, 45f, 46f, 219t, 220t, 221t, 222t
INDEX
289
liquidity, 188t
redemptions, 196t
interest, 275
issuers, 276
K
Keoghs, 13f, 124f, 137f, 141, 141f, 151f, 162f, 164f, 276
assets, 8, 9f
definition, 8n
138, 138f
assets, 8, 30f
290
INDEX
net new cash flow, 10, 30, 31f, 48, 48f, 49f, 51f, 209t,
210t, 226t, 227t
net new cash flow, 10, 16, 17f, 30, 31f, 33, 34, 35f, 106f,
107f, 189t, 193t
redemptions, 210t
M
management fees, 246, 276
market capitalization, 224t, 225t
market value, 277
Maryland corporations, 24344, 244f
Massachusetts business trusts, 24344, 244f
maturity, 277
mid-cap equity ETFs, 71f
mid-cap equity portfolios, 98, 100
mid-cap mutual funds, 224t, 225t
Millennial Generation, 117, 117f
money market, 277
money market deposit accounts, 51, 51f
money market funds, 144, 144f, 145, 146f, 277. See also
institutional money market funds; retail money
market funds; taxable money market funds;
tax-exempt money market funds
asset composition of, 212t, 213t
characteristics, 242
291
redemptions, 174t
research publications, xi
history, 24041
trading, 68
variable annuities in, 11f, 12, 12f, 30f, 75, 75f, 88, 88f
mutual fund shareholders. See also demographics
ongoing expenses, 92
investment goals of, 28, 113, 115f, 119, 133, 134f, 165
292
INDEX
prime money market funds, 14, 48f, 5253, 53f, 207t, 208t,
money market funds, 28, 29f, 4854, 48f, 49f, 50f, 51f,
53f
209t, 213t
N
national municipal bond funds
exchange redemptions, 197t
exchange sales, 195t
liquidity, 188t
net new cash flow, 193t
new sales, 194t
R
real estate sector funds, 228t, 229t
redeem, 278
O
oil and gas prices, 32
open-end investment companies, 242, 277. See also mutual
fund entries
operating expenses, 277
organizational structure of mutual funds, 24348, 244f, 245f
pension funds, 13, 49, 132, 137, 137f, 138, 138f. See also
retail money market funds, 49f, 51, 51f, 208t, 209t, 236t
portfolio, 278
redemptions, 227t
INDEX
293
S
SAI (statement of additional information), 25556, 280
characteristics, 150
characteristics, 150
294
INDEX
T
target date (lifecycle) funds, 230t, 231t, 281
in IRAs, 156
S&P 500 index, 32, 35, 36, 46, 46f, 58, 126, 126f, 280
212t
taxable money market funds
liquidity, 188t
redemptions, 196t
stock, 281
global indexes, 32
INDEX
295
U.S. Treasury securities, 14f, 15, 5253, 53f, 212t, 213t, 282
V
valuation process of funds, 25758
value funds, 101f, 224t, 225t
variable annuities, 282
closed-end fund owner holdings of, 88, 88f
household investments in, 11f, 12, 12f, 30f, 75, 75f, 88,
88f
liquidity, 188t
net new cash flow, 193t
liquidity, 188t
redemptions, 196t
liquidity, 188t
U.S. economic climate, 1819, 26, 28, 3132, 43, 126f, 140
redemptions, 196t
213t
Y
yield, 282
yield curve, 282
139f, 140f
296
INDEX