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16
Citi Depositary Receipts
International Investing Trends
According to U.S. Federal Reserve data, U.S. investment in
non-U.S. equities as of Q3 2013 was $5.9 trillion, up 16%
from the Q3 2012 level of $5.1 trillion. Net inflows of $752
billion accounted for most of the increase, which was further
supported by an increase in asset values of $90 billion. On
a sequential basis, U.S. investment in non-U.S. equities in
Q3 2013 was up 6% versus the Q2 2013 level of $5.6 trillion.
Increasing asset values of $218 billion accounted for most
of the total increase quarter-over-quarter, which was further
supported by net inflows of $109 billion.
As of November 2013, international ETF balances were
at $395 billion, up 30% from November 2012 levels.
International ETF balances represent approximately
24% of total ETF assets.
As of year-to-date through October 2013, long-term mutual
funds witnessed estimated inflows of $162.6 billion. During
this period, investors slowly moved back into equity funds
after a year of outflow in 2012.
As stocks rebounded in 2013, overall equity funds witnessed
an inflow of $134.4 billion. Most of the overall equity inflow
was driven by inflows of $113.8 billion into world equity
funds as investor confidence rose in overseas companies.
Additionally, U.S. domestic equity funds saw a modest inflow
of $20.6 billion.
In comparison to the same period prior year, total estimated
inflows to long-term mutual funds decreased by $57.9 billion
(or 26%) as of year-to-date October 2013. The decrease was
primarily led by an outflow of $312.3 billion out of bond funds,
which was offset by inflows into equity funds ($233.7 billion)
and hybrid funds ($20.8 billion).
Year-over-Year Flows to Long-Term Mutual Funds
In US$ Billions
YTD
October
2012
YTD
October
2013
Increase/
(Decrease)
YoY
1
Total Equity
(99.3)
134.4
233.7
Domestic
(110.3)
20.6
131.0
World
11.0
113.8
102.7
Hybrid
47.2
68.0
20.8
Total Bond
272.6
(39.8)
(312.4)
Taxable
225.1
4.2
(220.8)
Municipal
47.6
(44.0)
(91.6)
Total
220.5
162.6
(57.9)
Equity Fund Flows
In US$ Billions
16.7
17.8
11.0
(12.4)
YTD
October
2008
YTD
October
2009
YTD
October
2010
YTD
October
2011
YTD
October
2013
YTD
October
2012
Domestic Equity
World Equity
-200
-150
-100
-50
0
50
100
150
(61.0)
20.6
(129.0)
(62.4)
(98.2)
(110.3)
113.8
36.9
Source: ICI
Source: ICI
Long-Term Mutual Fund Flows
In US$ Billions
Total Bond
Hybrid
Total Equity
Jan-13
Feb-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Mar-13
-70
-50
-30
-10
10
30
50
70
90
32.8 20.3 16.1
12.1
12.2
8.5
4.9 4.1
5.2
21.1
2.6
7.1
19.2
6.2
0.9
6.1
6.0
12.5
5.6
7.0
9.0
14.8
14.4
37.4
9.8
(59.8)
(17.1)
(29.1)
(11.6) (15.6)
Source: ICI
1
Differences may not sum to total due to rounding