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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 2014 was $6.6 trillion, up 10% from
the Q3 2013 level of $6.0 trillion. Net inflows of $192 billion
accounted for most of the increase. On a sequential basis,
U.S. investment in non-U.S. equities in Q3 2014 was down
versus the Q2 2014 levels of $7.0 trillion.
Long-Term Mutual Fund Flows
In US$ Billions
Total Bond
Hybrid
Total Equity
Jan-14
May-14
Jul-14
Sep-14
Mar-14
-30
-20
-10
0
10
20
30
40
24.4 19.0
10.5 5.0
0.5
4.3
3.5 1.9 1.9
21.1
4.3
9.4
10.7
11.2
3.3
4.8
7.8
3.8
5.7
12.7
8.1
1.4
2.7
(20.3)
(2.1)
(6.6)
1.2
(5.4)
Source: ICI
In comparison to the same period prior year, total estimated
inflows to long-term mutual funds decreased by $30.0
billion (or 19%) through September 2014. The decrease was
primarily led by an outflow of $70.3 billion out of equity funds
and $32.4 billion out of hybrid funds, which was offset by
inflows into bond funds of $72.7 billion.
Year-over-Year Flows to Long-Term Mutual Funds
In US$ Billions
Through
Sept 2013
Through
Sept 2014
Increase/
(Decrease)
YoY
1
Total Equity
116.8
46.5
(70.3)
Domestic
15.6
-33.8
(49.4)
World
101.2
80.3
(20.9)
Hybrid
64.3
31.9
(32.4)
Total Bond
-27.3
45.4
72.7
Taxable
11.3
27.0
15.7
Municipal
-38.6
18.4
57.0
Total
153.7
123.8
(30.0)
Equity Fund Flows
In US$ Billions
8.5
16.5
3.0
YTD
Sept
2011
YTD
Sept
2012
YTD
Sept
2013
YTD
Sept
2014
YTD
Sept
2010
YTD
Sept
2009
YTD
Sept
2008
(33.8)
(62.4)
15.6
29.4 20.1
-200
-150
-100
-50
0
50
100
150
World Equity
Domestic Equity
80 6
(56.2)
(98.6)
80.3
101.2
(85.6)
(34.2)
Source: ICI
Source: ICI
1
Differences may not sum to total due to rounding.
From January 2014 to September 2014, long-term mutual
funds witnessed inflows of $123.7 billion. During this time,
investors primarily moved into world equity funds and
hybrid funds.
As stocks rebounded in 2014, overall equity funds witnessed
an inflow of $46.5 billion. All of the overall equity inflow
was driven by inflows of $80.3 billion into world equity funds
as investor confidence rose in overseas companies. On the
other hand, U.S. domestic equity funds saw an outflow of
$33.8 billion.
From January 2014 to September 2014, hybrid funds, which
can invest in both equity and fixed income securities, had
estimated inflows of $31.9 billion while total bond funds had
estimated inflows of $45.4 billion.