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11
Citi Depositary Receipt Services
International Investing Trends
In comparison to the same period prior year, total estimated
inflows to long-term mutual funds decreased by $95.4 billion
(or 44% decrease) as of year-to-date May 2014. The decrease
was primarily led by a lower inflow of $51.1 billion from taxable
bond, $25.8 billion from hybrid funds, and $14.7 billion from
world equity funds.
Equity Fund Flows
1
In USD Billions
Domestic Equity
World Equity
-50
-25
0
25
50
75
100
YTD
May
2014
YTD
May
2013
YTD
May
2012
YTD
May
2011
YTD
May
2010
YTD
May
2009
YTD
May
2008
13.5
(12.7)
24.9
26.9
7.4
15.6
48.9
63.6
22.0
10.3
(46.7)
(14.0)
1.2
(33.4)
Source: ICI
Year-over-Year Flows to Long-Term Mutual Funds
In USD Billions
YTD
May 2013
YTD
May 2014
Increase/
(Decrease)
YoY
2
Total Equity
79.2
59.2
(20.0)
Domestic
15.6
10.3
(5.3)
World
63.6
48.9
(14.7)
Hybrid
46.5
20.8
(25.8)
Total Bond
89.8
40.2
(49.6)
Taxable
83.3
32.2
(51.1)
Municipal
6.5
8.0
1.5
Total
215.5
120.1
(95.4)
According to the U.S. Federal Reserve data, U.S. investment in
non-U.S. equities as of Q1 2014 was $6.7 trillion, up 18% from
the Q1 2013 level of $5.6 trillion. Net inflows of $365 billion
accounted for most of the increase. On a sequential basis,
U.S. investment in non-U.S. equities in Q1 2014 was up 2%
versus the Q4 2013 level of $6.5 trillion.
Long-Term Mutual Fund Flows
1
In USD Billions
0
5
10
15
20
25
30
35
Total Equity
Hybrid
Total Bond
May-14
April-14
March-14
February-14
January-14
24.4
19.2
10.5
4.5
0.6
2.8
1.2
7.8
12.5
7.4
11.2
5.7
3.9
5.0
3.4
Source: ICI
As of year-to-date May 2014, long-term mutual funds
witnessed estimated inflows of $120 billion. During this time,
investors primarily moved into world equity funds and taxable
bond funds.
As stocks rebounded during the first half of 2014, overall
equity funds witnessed an inflow of $59.2 billion. Most of the
overall equity inflow was driven by inflows of $48.9 billion into
world equity funds as investor confidence rose in overseas
companies. Additionally, U.S. domestic equity funds saw a
modest inflow of $10.3 billion.
Through year-to-date May 2014, hybrid funds, which can
invest in both stock and fixed income securities, had estimated
inflows of $20.8 billion while bond funds had estimated inflows
of $40.2 billion.
1
Data as of May 2014.
2
Differences may not sum to total due to rounding.