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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 2015 was $6.5 trillion, down 4%
from the Q3 2014 level of $6.8 trillion. Net outflows in Q3
2015 of $313 billion accounted for most of the decrease. On a
sequential basis, U.S. investment in non-U.S. equities in Q3
2015 was down versus the Q2 2015 levels of $7.3 trillion.
Long-Term Mutual Fund Flows
In USD Billions
Total Bond
Hybrid
Total Equity
Jan-15
May-15
Jul-15
Sep-15
Mar-15
-50
-40
-30
-20
-10
0
10
20
30
40
12.3 8.7 5.1
(1.5)
(3.8)
0.0
(1.4)
(9.2) (9.2)
(23.5)
(8.2)
8.2
5.5
1.3
0.3
6.7
3.3
3.4
6.3
17.2
10.0
2.7
(20.1)
(3.0)
(9.3)
(6.4)
(5.1)
Source: ICI
From January 2015 to September 2015, hybrid funds, which
can invest in both equity and fixed income securities, had
estimated outflows of $1.8 billion, while total bond funds had
estimated inflows of $2.1 billion. The inflow into bond funds
was driven by inflows into municipal bond funds.
Equity Fund Flows
In USD Billions
8.5
16.5
YTD
Sept
2012
YTD
Sept
2013
YTD
Sept
2014
YTD
Sept
2015
YTD
Sept
2011
YTD
Sept
2010
YTD
Sept
2009
(33.7)
(62.4)
15.5
29.4 20.1
-150
-100
-50
0
50
100
150
World Equity
Domestic Equity
(80.6)
(98.6)
80.1
(113.2)
103.4
100.9
(56.2)
3.0
Source: ICI
1
Differences may not sum to total due to rounding.
From January 2015 to September 2015, long-term mutual
funds witnessed outflows of $9.6 billion. During this
time, investors primarily moved out of equity funds in an
environment of increasingly alarming signs of an economic
slowdown in China, a collapse in oil prices and uncertainty
over U.S. monetary policy.
In comparison, during the same period prior year, there was
an estimated inflow of $134 billion into equity, bond and
hybrid funds.
Overall equity funds witnessed an outflow of $9.8 billion in
2015 as global stocks tumbled largely due to the Chinese
stock market correction in June 2015. U.S. domestic equity
funds saw an outflow of $113.2 billion, partially offset by an
inflow of $103.4 billion into world equity funds.
Source: ICI
Year-over-Year Flows to Long-TermMutual Funds
In USD Billions
YTD Sept
2014
YTD Sept
2015
Increase/
(Dec) YoY
1
Total Equity
$46.5
($9.8)
($56.3)
Domestic
($33.7)
($113.2)
($79.6)
World
$80.1
$103.4
$23.3
Hybrid
$33.7
($1.8)
($35.5)
Total Bond
$53.9
$2.1
($51.8)
Taxable
$35.5
($2.0)
($37.5)
Municipal
$18.4
$4.1
($14.3)
Total
$134.1
($9.6)
($143.6)