Professional Documents
Culture Documents
2014 Investment Company Fact Book: 54th Edition
2014 Investment Company Fact Book: 54th Edition
Fact Book
A Review of Trends and Activities
in the U.S. Investment Company Industry
54th edition
WWW.ICIFACTBOOK.ORG
$30.0 trillion
$17.1 trillion
Mutual funds
$15.0 trillion
Exchange-traded funds
$1.7 trillion
Closed-end funds
$279 billion
$87 billion
29%
25%
Commercial paper
45%
11%
56.7 million
96.2 million
46.3%
$100,000
3
$23.0 trillion
67%
$6.5 trillion
54th 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. As of December 2013, members of ICI managed total assets of $16.5 trillion and served more than 90 million shareholders.
Although information and data provided by independent sources are 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-fourth edition
ISBN 1-878731-55-6
Copyright 2014 by the Investment Company Institute. All rights reserved.
Contents
Letter from the Chief Economist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
ICI Research Staff and Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
Brian Reid
Chief Economist of the Investment Company Institute
When answering, I usually give several examples of our work and how it benefits funds and their
shareholders. But for these examples to leave a lasting impression, I needed a unifying theme
to answer the why in the question. Then, last fall, a member of the ICI Board of Governors
and I were discussing the importance of good data and analysis at his firm. In a turn of phrase
reminiscent of the classical physics postulate that nature abhors a vacuum, he said that he often
reminds his colleagues: When theres an information vacuum, emotion fills the void.
And there I had it: a nine-word answer that contained the essence of why ICI strives to provide
quality data and information about investment companiesmutual funds, ETFs, closed-end funds,
and UITsand their investors. Without hard data and fact-based evidence, humans can be quite
creative in constructing emotionally charged explanations of the unknown.
The Investment Company Fact Book is one of the most visible products of our efforts to fill the
information void. Each of the chapters, as well as the extensive set of data tables, provides insights
about funds and their investors. The Fact Books comprehensive summary of our work provides the
public and policymakers a reliable, ongoing source for data and analysis.
But we constantly face the need to increase and improve the store of knowledge. To that end, ICI
made two significant changes to its data releases this winter and spring. In January, we began
releasing a monthly summary covering the portfolio holdings of taxable money market funds.
This summary is compiled from data that money market funds also provide to the Securities and
Exchange Commission (SEC). ICI and its members supported the SECs initiative to gather this
information, knowing that this collection would lead to less speculation about money market funds
and better public policies. Similarly, we believe that our releasing a summary of the information
in an easily accessible report will better inform the public discussion and understanding of money
market funds.
In March, we released a major update of our mutual fund classification system, which assigns
an investment style to each fund. The first wholesale redesign since 1998, this modernized
classification system gives ICI members, the media, and the public the ability to track investor flows
and changes in fund portfolios for alternative strategy, inflation protected, and other types of funds
that have grown rapidly in recent years. This was a multiyear project involving our member firms
and staff from ICIs Research, Information Technology, and Public Communications departments. All
told, we reviewed the prospectuses of more than 18,000 funds that have been active at some point
since 2000, rewrote dozens of programs associated with our data-collection and processing efforts,
and provided webinars, press releases, and online resources to help members, the media, and data
subscribers understand the nature of the changes.
viii
We also seek new ways to deploy our information to fill the void. For example, when interest rates
began to rise in the spring and summer of 2013, after Federal Reserve officials signaled that they
would begin to scale back their purchases of Treasury and agency bonds, market observers and
the media often pointed to fund investors as a source of the selling pressure. In a series of blog
postings, we demonstrated through data and analysis that neither funds nor their investors were
the primary source of volatility in the U.S. Treasury market. Indeed, mutual funds themselves
accounted for only a tiny fraction of the overall trading volume in government securities, indicating
that other market participants were behind most of the trading.
Providing timely and accurate data and analysis is critical to ensuring that factsand not emotion
drive commentary and public policy about regulated funds and their investors. We dedicate
months of effort each year to publishing the Fact Book as part of our mission to facilitate sound,
well-informed public policies affecting investment companies, their investors, and the retirement
markets. This mission is the essential focus of every member of the ICI Research Department
throughout the year.
ix
xi
Trends in the Expenses and Fees of Mutual Funds, 2012, ICI Research Perspective, April 2013
Overview of Fund Governance Practices, 19942012, September 2013
Investor Research Publications
Americas Commitment to Retirement Security: Investor Attitudes and Actions, 2013, February
2013
Ownership of Mutual Funds Through Investment Professionals, 2012, ICI Research Perspective,
February 2013
Profile of Mutual Fund Shareholders, 2012, ICI Research Report, February 2013
The Closed-End Fund Market, 2012, ICI Research Perspective, July 2013
401(k) Participants in the Wake of the Financial Crisis: Changes in Account Balances, 20072011,
ICI Research Perspective, October 2013
The IRA Investor Profile: Traditional IRA Investors Activity, 20072011, October 2013
Characteristics of Mutual Fund Investors, 2013, ICI Research Perspective, October 2013
Ownership of Mutual Funds, Shareholder Sentiment, and Use of the Internet, 2013,
ICI Research Perspective, October 2013
xii
Defined Contribution Plan Participants Activities, First Quarter 2013, ICI Research Report,
July 2013
Who Gets Retirement Plans and Why, 2012, ICI Research Perspective, October 2013
A Look at Private-Sector Retirement Plan Income After ERISA, 2012, ICI Research Perspective,
October 2013
Defined Contribution Plan Participants Activities, First Half 2013, ICI Research Report,
November 2013
The Role of IRAs in U.S. Households Saving for Retirement, 2013, ICI Research Perspective,
November 2013
401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2012,
ICI Research Perspective, December 2013
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
A weekly report that provides money market fund assets by type of fund.
Monthly Taxable Money Market Fund Portfolio Data
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.
xiii
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 that provides 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 2014 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 Nicole Daughters, Web Designer.
xiv
PART ONE
Figures
Chapter 1
Overview of U.S.-Registered Investment Companies
Figure 1.1: Investment Company Total Net Assets by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.2: Share of Household Financial Assets Held in Investment Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.3: Household Net Investments in Funds, Bonds, and Equities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.4: Mutual Funds in Household Retirement Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1.5: Investment Companies Channel Investment to Stock, Bond, and Money Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.6: More Than Three-Quarters of Fund Complexes Were Independent Fund Advisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.7: Number of Fund Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.8: Fund Complexes with Positive Net New Cash Flow to Equity, Bond, and Hybrid Funds. . . . . . . . . . . . . . . . . . . . . 17
1.9: Number of Mutual Funds Leaving and Entering the Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
1.10: Total Net Assets and Number of UITs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
1.11: Number of Investment Companies by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1.12: Investment Company Industry Employment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1.13: Investment Company Industry Employment by Job Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
1.14: Investment Company Industry Employment by State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Chapter 2
Recent Mutual Fund Trends
Figure 2.1: The United States Has the Worlds Largest Mutual Fund Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.2: Share of Assets at the Largest Mutual Fund Complexes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
2.3: Net New Cash Flow to Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.4: Net New Cash Flow to Equity Funds Is Related to World Equity Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
2.5: Net New Cash Flow to Long-Term Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.6: Willingness to Take Investment Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
2.7: Turnover Rate Experienced by Equity Fund Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
2.8: Net New Cash Flow to Bond Funds Is Related to Bond Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
2.9: Willingness to Take Above-Average or Substantial Investment Risk by Age Group. . . . . . . . . . . . . . . . . . . . . . . . . . . 39
2.10: Mutual Fund Assets by Age Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.11: Investors Are Gravitating Toward Hybrid Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
2.12: Net New Cash Flow to Index Mutual Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
2.13: Funds Indexed to the S&P 500 Held 33Percent of Index Mutual Fund Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
2.14: Index Equity Mutual Funds Share Continued to Rise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
2.15: Some of the Outflows from Domestic Equity Mutual Funds Have Gone to ETFs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
2.16: Net New Cash Flow to Money Market Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
2.17: Net New Cash Flow to Taxable Retail Money Market Funds Is Related to Interest Rate Spread. . . . . . . . . . . 48
2.18: Net New Cash Flow to Retail and Institutional Money Market Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
2.19: Money Market Funds Managed 20Percent of U.S. Businesses Short-Term Assets in 2013. . . . . . . . . . . . . . . . 50
2.20: Prime Money Market Fund Holdings of Treasury and Agency Securities and
Repurchase Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
FIGURES
Chapter 3
Exchange-Traded Funds
Figure 3.1: The United States Has the Largest ETF Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
3.2: Total Net Assets and Number of ETFs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
3.3: Creation of an ETF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
3.4: Net Issuance of ETF Shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.5: Net Issuance of ETF Shares by Investment Classification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.6: Total Net Assets of ETFs Were Concentrated in Large-Cap Domestic Stocks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
3.7: Number of ETFs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
3.8: Number of Commodity and Sector ETFs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
3.9: Total Net Assets of Commodity and Sector ETFs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
3.10: ETF-Owning Households Held a Broad Range of Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
3.11: Characteristics of ETF-Owning Households. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
3.12: ETF-Owning Households Are Willing to Take More Investment Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Chapter 4
Closed-End Funds
Figure 4.1: Total Assets of Closed-End Funds Increased to $279Billion at Year-End 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
4.2: Equity Funds Growing Share of the Closed-End Fund Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
4.3: Closed-End Fund Net Share Issuance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
4.4: Closed-End Fund Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
4.5: Closed-End Funds Employing Structural and Certain Types of Portfolio Leverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
4.6: Preferred Shares Comprised the Majority of Closed-End Fund Structural Leverage . . . . . . . . . . . . . . . . . . . . . . . . . . 78
4.7: Use of Portfolio Leverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
4.8: Closed-End Fund Investors Owned a Broad Range of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
4.9: Closed-End Fund Investors Had Above-Average Household Incomes and Financial Assets . . . . . . . . . . . . . . . . 81
Chapter 5
Mutual Fund Expenses and Fees
Figure 5.1: Expenses Incurred by Mutual Fund Investors Have Declined Substantially Since 2000 . . . . . . . . . . . . . . . . . . . . . . 85
5.2: Mutual Fund Expense Ratios Tend to Fall as Fund Total Net Assets Rise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
5.3: Fund Shareholders Paid Below-Average Expenses for Equity Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
5.4: Assets Are Concentrated in Lower-Cost Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
5.5: Total Net Assets and Number of Index Mutual Funds Have Increased in Recent Years. . . . . . . . . . . . . . . . . . . . . . . 89
5.6: Expense Ratios of Actively Managed and Index Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
5.7: Expense Ratios for Selected Investment Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
5.8: Fund Sizes and Average Account Balances Varied Widely in 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
5.9: Front-End Sales Loads That Investors Pay Are Well Below the Maximum Front-End
Sales Loads That Funds Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
5.10: Nearly All Net New Cash Flow Was in No-Load Institutional Share Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
5.11: Total Net Assets of Long-Term Mutual Funds Are Concentrated in No-Load Share Classes . . . . . . . . . . . . . . . 99
Chapter 6
Characteristics of Mutual Fund Owners
Figure 6.1: 46 Percent of U.S. Households Owned Mutual Funds in 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
6.2: Characteristics of Mutual Fund Investors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
6.3: Mutual Fund Ownership Is Greatest Among 35- to 64-Year-Olds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
6.4: The U.S. Population and Mutual Fund Shareholders Are Getting Older. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
6.5: Ownership of Mutual Funds Increases with Household Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
6.6: Most Households That Own Mutual Funds Have Moderate Incomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106
6.7: Employer-Sponsored Retirement Plans Are Often the Source of First Mutual Fund Purchase . . . . . . . . . . . . 108
6.8: 81 Percent of Mutual FundOwning Households Held Shares Inside Employer-Sponsored
Retirement Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
6.9: Nearly Half of Mutual FundOwning Households Held Shares Through Multiple Sources . . . . . . . . . . . . . . . . . 110
6.10: Mutual Fund Industry Favorability Rises and Falls with Stock Market Performance . . . . . . . . . . . . . . . . . . . . . . 111
6.11: Households Willingness to Take Investment Risk Tends to Move with the Stock Market . . . . . . . . . . . . . . . . 112
6.12: Households Willingness to Take Investment Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
6.13: Eight in 10 Mutual FundOwning Households Have Confidence in Mutual Funds. . . . . . . . . . . . . . . . . . . . . . . . . . 114
6.14: Internet Access Is Widespread Among Mutual FundOwning Households . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
6.15: Most Mutual Fund Shareholders Used the Internet for Financial Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
6.16: Mutual Fund Shareholders Use of the Internet by Age, Education, and Income . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
6.17: Institutional and Household Ownership of Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Chapter 7
Retirement and Education Savings
Figure 7.1: Retirement Resource Pyramid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
7.2: Social Security Benefit Formula Is Highly Progressive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
7.3: Near-Retiree Households Across All Income Groups Have Retirement Assets, DB Plan Benefits,
or Both. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
7.4: U.S. Retirement Assets Rose in 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
7.5: Many U.S. Households Have Tax-Advantaged Retirement Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
7.6: Younger Households Tend to Have Higher Rates of IRA or Defined Contribution Plan Ownership. . . . . . . 128
7.7: Defined Contribution Plan Assets by Type of Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
7.8: 401(k) Asset Allocation Varied with Participant Age. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
7.9: Asset Allocation to Equities Varied Widely Among 401(k) Plan Participants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
7.10: Target Date Funds 401(k) Market Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
7.11: 401(k) Balances Tend to Increase with Participant Age and Job Tenure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
7.12: A Variety of Arrangements May Be Used to Compensate 401(k) Service Providers. . . . . . . . . . . . . . . . . . . . . . . 136
7.13: 401(k) Equity Mutual Fund Assets Are Concentrated in Lower-Cost Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.14: IRA Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
7.15: 46Million U.S. Households Owned IRAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
7.16: Many Traditional IRA Investors Have Made Rollovers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
7.17: Rollovers Are Often a Source of Assets for Traditional IRA Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
7.18: Households Invested Their IRAs in Many Types of Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
7.19: Traditional IRA Asset Allocation Varied with Investor Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
7.20: Withdrawals from Traditional IRAs Are Infrequent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
7.21: Traditional IRA Withdrawals Among Retirees Often Are Used to Pay for Living Expenses. . . . . . . . . . . . . . . 145
7.22: Households Mutual Fund Assets by Type of Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
7.23: Majority of Mutual Fund Retirement Account Assets Were Invested in Equities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
7.24: Target Date and Lifestyle Mutual Fund Assets by Account Type. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
7.25: Section 529 Savings Plan Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
7.26: Characteristics of Households Saving for College. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
FIGURES
$15 trillion
at year-end 2013
CHAPTER ONE
Overview of
U.S.-Registered
Investment Companies
U.S.-registered investment companies play a major role in the U.S. economy
and world financial markets, managing more than $17 trillion in assets at
year-end 2013 for nearly 98 million U.S. investors. 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.
This chapter provides a broad overview of U.S.-registered investment companiesmutual funds, closed-end
funds, exchange-traded funds, and unit investment trustsand their sponsors.
Investment Company Assets in 2013.......................................................................................................................8
Americans Continued Reliance on Investment Companies................................................................................10
Role of Investment Companies in Financial Markets............................................................................................13
Types of Intermediaries and Number of Investment Companies........................................................................15
Investment Company Employment.........................................................................................................................21
LEARN MORE
Monthly Trends
in Mutual Fund
Investing.
Available at
www.ici.org/
research/stats.
* T he 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.
FIGURE1.1
Mutual funds 1
Closed-end funds 2
ETFs 3
UITs
Total 4
1996
$3,526
$147
$2
$72
$3,747
1997
4,468
152
85
4,712
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
8,095
253
228
37
8,614
2005
8,891
276
301
41
9,509
2006
10,398
297
423
50
11,167
2007
12,000
312
608
53
12,974
2008
9,603
184
531
29
10,347
2009
11,113
223
777
38
12,152
2010
11,831
238
992
51
13,112
2011
11,626
243
1,048
60
12,978
2012
13,044
264
1,337
72
14,717
2013
15,018
279
1,675
87
17,058
Mutual fund data include only mutual funds that report statistical information to the Investment Company Institute. The data
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: Components may not add to the total because of rounding.
Sources: Investment Company Institute and Strategic Insight Simfund
1
2
1980
1985
1990
1995
2000
2005
2010
2013
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
10
FIGURE1.3
335
45 238
153
-342
-472
392
82
544
-694
595
277
-45
-328
-71
453
39
32 255
-153
-246
-269
478
52
-420
2004
2005
2006
2007
2008
2009
2010
2011
-239
-417
-1,198
2003
430
2012
2013
* 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 interest and dividends.
Sources: Investment Company Institute and Federal Reserve Board
11
FIGURE1.4
58
60
55
56
2009
2011
2013
44
44
45
2009
2011
2013
48
44
46
1999
2001
2003
48
46
45
1999
2001
2003
34
26
20
1993
1995
1997
2005
2007
50
49
IRAs
46
37
33
1993
1995
1997
2005
2007
* 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
12
45
29
24
25
45
15
14
5
U.S. corporate
equity
22
11
2
U.S. and
international
corporate bonds
11
<0.5
U.S. Treasury
and government
agency securities
3
U.S. municipal
securities
0
Commercial
paper
13
LEARN MORE
Money Market
Fund Resource
Center. Available
at www.ici.org/
mmfs.
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. Mutual funds share of outstanding commercial paper
increased slightly, from 42percent at year-end 2012 to 45percent at year-end
2013. Money market funds accounted for most of mutual funds commercial
paper holdings, and the share of outstanding commercial paper that mutual
funds held fluctuated with investor demand for prime money market funds
and the supply of commercial paper. Mutual funds saw an increase in prime
money market fund holdings and in other mutual fund holdings of commercial
paper, even though 2013 marked the seventh straight year that outstanding
commercial paper contracted in dollar terms.
At year-end 2013, investment companies held 25percent of tax-exempt
debt issued by U.S. municipalities (Figure1.5), a fairly stable share over
the past few years. Funds held 11percent of U.S. Treasury and government
agency securities at year-end 2013, and their role in the corporate bond
market shrunk by a small amount in 2013. Indeed, investment companies held
15percent of outstanding corporate debt securities at year-end 2013, down
from 16percent at year-end 2012.
14
79%
Independent fund advisers
5%
Insurance companies
5%
Banks or thrifts
2%
Brokerage firms
In 2013, 801 financial firms from around the world competed in the U.S.
market to provide investment management services to fund investors
(Figure1.7). 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 these gains.
From year-end 2003 to year-end 2009, 292 fund sponsors left the business
but just 267 entered, for a net loss of 25 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 (Figure1.8).
15
FIGURE1.7
707
692
693
691
709
70
60
58
55
50
40
38
47 48
44
46 44
698
682
705
755
88
76
62
51
40
53
791
58
38
42
48
800
600
500
400
29
30
900
700
78
53
37
801
300
20
200
10
100
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
But in recent years, the number of sponsors has risen once again, with a net
increase of 119 from year-end 2009 to year-end 2013 (300 entering and 181
leaving) (Figure1.7). Many of the entering firms took advantage of the series
trusta 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 allows the
operating costs to be spread across the funds in the trust.
Competitive dynamics also affect the number of funds offered in any given
year. Fund sponsors create new funds to meet investor demand, and they
merge or liquidate those that do not attract sufficient investor interest. A
total of 660 funds opened in 2013, slightly fewer than the year before and
below the 2007 peak of 726but near the 20032013 average (Figure1.9).
The rate of fund mergers and liquidations declined a significant amount to
424 in 2013 from 501 in 2012.
16
FIGURE1.8
Fund Complexes with Positive Net New Cash Flow to Equity, Bond, and Hybrid Funds
Percentage of fund complexes, selected years
72
64
57
64
55
55
53
56
58
56
52
54
49
48
38
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2009 2010 2011 2012 2013
FIGURE1.9
680
499
534 534
394
248
870
726
680
588
337
536
437
230
286
2003
286
2004
251
2005
710
207
2006
315
362
589
501
667
654
572
499
513
257
258
300
241
213
660
501
196
424
169
508
221
2007
332
2008
2009
2010
2011
305
2012
255
2013
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.
17
18
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
current market value of the underlying securities.
FIGURE1.10
Number of trusts
15,000
160
140
120
12,000
10,966
100
94
92
80
32
26
74
23
60
40
20
0
56
5,552
4
62
48
60
49
19
4
26
36
17
4
15
36
13
3
19
37
11
3
23
41
10
29
50
9
2
39
53
8
43
38
29 10
6 2 4
20 25
51
13
4
34
16
4
41
72
16
4
87
12
4
9,000
6,000
71
52
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
3,000
19
Mutual funds 1
Closed-end funds
ETFs 2
UITs
Total
1996
6,293
496
19
11,764
18,572
1997
6,778
486
19
11,593
18,876
1998
7,489
491
29
10,966
18,975
1999
8,003
511
30
10,414
18,958
2000
8,370
481
80
10,072
19,003
2001
8,518
491
102
9,295
18,406
2002
8,511
544
113
8,303
17,471
2003
8,426
583
119
7,233
16,361
2004
8,417
619
152
6,499
15,687
2005
8,449
635
204
6,019
15,307
2006
8,721
646
359
5,907
15,633
2007
8,745
663
629
6,030
16,067
2008
8,879
642
743
5,984
16,248
2009
8,612
627
820
6,049
16,108
2010
8,536
624
950
5,971
16,081
2011
8,674
632
1,166
6,043
16,515
2012
8,745
602
1,239
5,787
16,373
2013
8,974
599
1,332
5,552
16,457
Data include mutual funds that invest primarily in other mutual funds.
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.
Note: Investment company data include only investment companies that report statistical information to the Investment
Company Institute.
Sources: Investment Company Institute and Strategic Insight Simfund
2 E TF
20
149,000
154,000
1999
2000
168,000
146,000
157,000
159,000
166,000
2009
2011
2013
114,000
1997
2005
2007
21
34%
Fund management
10%
Fund administration
30%
Investor servicing
26%
Sales and distribution
22
23
$73 billion
in 2013
CHAPTER TWO
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 ................................................................................................................................................................................. 26
U.S. Mutual Fund Assets ............................................................................................................................................................................................................. 27
Developments in Mutual Fund Flows ......................................................................................................................................................................................... 29
The Global Economy and Financial Markets in 2013 ........................................................................................................................................ 30
Long-Term Mutual Fund Flows .............................................................................................................................................................................................. 31
The Growing Popularity of Index Funds ....................................................................................................................................................................... 42
Demand for Money Market Funds ....................................................................................................................................................................................... 45
26
LEARN MORE
Money Market
Fund Resource
Center. Available
at www.ici.org/
mmfs.
More than 800 sponsors managed mutual fund assets in the United States
in 2013. Long-run competitive dynamics have prevented any single firm or
group of firms from dominating the market. For example, of the largest 25
fund complexes in 2000, only 13 remained in this top group in 2013. Another
FIGURE2.1
The United States Has the Worlds Largest Mutual Fund Market
Percentage of total net assets, year-end 2013
12%
Africa and
Asia-Pacific
7%
Other Americas
38 Domestic equity funds
50%
United States
31%
Europe
Hybrid funds
27
1995
2000
2005
2010
2011
2012
2013
Largest 5 complexes
34
32
37
40
40
40
40
Largest 10 complexes
47
44
48
53
53
53
53
Largest 25 complexes
70
68
70
74
73
73
72
28
504
375
129
472
75
121
-46
53
216
-263
210
254
62
192
654
245
227
637
224
-157
2001
2002
2003
2004
196
241
-225
-48
2000
389
2005
2006
2007
2008
-539
-525
-150
-283
2009
2010
-124
-98
26
196
167
15
152
* In 2012, investors withdrew less than $500 million from money market funds.
Note: Components may not add to the total because of rounding.
29
30
LEARN MORE
Understanding
the Risks of Bond
Mutual Funds:
Are They Right
for Me? Available
at www.ici.org/
faqs.
31
Net New Cash Flow to Equity Funds Is Related to World Equity Returns
Monthly, 20002013
Billions of dollars
Percent
Total return
40
60
50
30
40
30
20
20
10
10
0
-10
-10
-20
-30
-20
-30
-40
-40
-50
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-60
2 The
32
FIGURE2.5
80
38
11
30
-24
22
5
10
35
-16
24
-2
-23
-1
32
7
44
15
10
19
38
15
8
15
30
6
13
12
24
6
6
12
6
1
-31
10
10
19
21
22
6
-16
-15
8
-17
-60
-23
7
5
-30
4
-12
-3
2
-21
-20
-17
-53
Sept
Oct
Nov
Dec
2012
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec*
2013
* In December 2013, investors added $406 million to hybrid funds and withdrew $182 million from equity funds.
Note: Components may not add to the total because of rounding.
Lower stock market volatility also likely served to strengthen demand for
equity mutual funds. 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 above 30 typically reflect a high degree of
investor fear and values below 20 are associated with a period of market
calm. In 2013, the VIX averaged 14 and peaked at 20. These levels are well
below those of recent years. For example, in 2011 and 2012, the VIX averaged
24 and 18, respectively, and peaked at levels of 48 and 27, respectively.
33
Lower stock market volatility also may have had a positive impact on
investors willingness to take above-average or substantial investment risk in
2013. In the wake of the 20072008 financial crisis, U.S. household surveys
taken each May showed a decline in willingness to take above-average or
substantial investment risk for equivalent levels of financial gain (Figure2.6).
In 2008, 23percent of households were willing to take above-average or
substantial investment risk. From 2009 through 2012, this level dropped to
19percent. In contrast, thepercentage of households willing to take belowaverage or no risk rose over this same period, from 40percent in 2008 to
46percent in 2012. In 2013, households willingness to take above-average
or substantial investment risk increased to 21percent, while risk aversion
(as measured bythepercentage of households willing to take only belowaverage or no risk) declined to 43percent.
FIGURE2.6
46
43
40
46
43
23
19
2008
2009
19
2010
19
2011
19
2012
21
2013
Note: This figure measures willingness to take investment risk for equivalent gainfor example, willingness to take aboveaverage or substantial risk for above-average or substantial gain.
34
35
80
60
40
20
80
82
84
86
88
90
92
94
96
98
00
02
04
06
08
10
13
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
36
Percent
30
3.0
2.5
25
Total return 2
2.0
20
1.5
15
1.0
10
0.5
0.0
-0.5
-5
-1.0
-10
-1.5
-2.0
2002
-15
2004
2006
2008
2010
2012
2013
-20
Net new cash flow to bond funds is plotted as a three-month moving average of net new cash flow as a percentage of previous
month-end assets. 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
1
37
Demand for bond funds fell in the second half of 2013 in response to negative
returns on bonds from higher long-term interest rates (Figure2.5). In the first
five months of 2013, bond funds received net cash inflows totaling $90billion.
But from June through December, investors redeemed $170billion, onnet,
from bond funds (both taxable and tax-exempt). For 2013 as a whole,
bond funds experienced net cash outflows of $80billionthe first annual
outflow since 2004. This outflow, however, is relatively smallrepresenting
only 2.4percent of bond fund total net assets as of December 2012. This
experience is in contrast to 1994 when a similar decline in bond fund returns
resulted in outflows of 10.1percent of bond funds assets. In addition, putting
the $80billion outflow in 2013 in further perspective, from 2005 to 2012,
bond funds received cumulative inflows of $1.2trillion. In 2012 alone, bond
funds received $302billion in net inflows.
Several factors, such as demand for shorter duration fixed-income securities,
demographics, and the increasing use of target date funds, likely tempered
aggregate outflows from bond funds in 2013.
Investors sought to mitigate capital losses associated with rising long-term
interest rates by moving into bond funds with shorter durations. Bond funds
most susceptible to increases in long-term interest rates, namely those that
invest primarily in longer-term bond funds with higher durationssuch as
those whose investment mandates focus on mid- to long-term Treasury
bonds, corporate bonds, or mortgage-backed securitieshad outflows of
$41billion. These outflows, however, were partially offset by strong investor
demand for short-term bond funds, which are less likely to experience
significant capital losses in response to rising long-term interest rates. In
2013, corporate and government short-term bond funds accumulated net
cash inflows of $33billion. Overall, taxable bond funds had net outflows of
$22billion in 2013.
The changing interest rate environment in 2013 also influenced the demand
for tax-exempt bond funds. However, redemptions from tax-exempt bond
funds in 2013 were likely exacerbated by investor concerns about the
finances of state and local governments. In 2013, tax-exempt bond funds had
$58billion in outflows. By comparison, these funds had inflows of $50billion
in 2012. Large bankruptcies have been rare in the municipal bond market.
However, the fiscal position of many state and local governments deteriorated
during the past several years, in part because of lower tax revenues following
38
the collapse of the housing market during the financial crisis. In addition, the
extremely low interest rates maintained by the Federal Reserve in the wake
of the financial crisis raised the cost to municipalities of funding defined
benefit plans. In July 2013, Detroit filed for bankruptcy protection, the largest
municipality in U.S. history to do so. This raised concerns that these events
might affect other municipalities in Michigan and that there might be legal
implications for municipalities in other states.
Nevertheless, the aging of the U.S. population may have served to moderate
bond fund outflows in 2013, just as it likely helped to boost bond inflows
in the past decade. Surveys indicate that as investors age, their willingness
to take investment risk tends to decline. In 2013, for example, 24percent of
households in which the head was aged 35 to 49 indicated that they were
willing to take above-average or substantial investment risk (Figure2.9).
In comparison, for households headed by someone aged 65 or older, only
14percent were willing to take such investment risks.
FIGURE2.9
22
21
14
Younger than 35
35 to 49
50 to 64
65 or older
39
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 2013, households in which the head was younger than 35
held just 4percent of mutual fund assets, whereas households in which the
head was 55 to 64 held 32percent of 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. This could
partly offset a decline in demand for bond funds by other investors as a result
of rising interest rates.
FIGURE2.10
15
27
27
10
20
19
21
27
31
32
33
31
28
14
6
2005
15
4
2010
15
4
2013
26
31
18
21
13
12
1995
2000
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 likely helped to
reduce outflows from bond funds in 2013. Target date mutual funds invest in a
changing mix of equities and bonds (and possibly other types of investments,
such as commodities). 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 stock and bond mutual funds. In 2013, target date
40
mutual funds had inflows of $53billion and ended the year with assets of
$618billion, up from $481billion in 2012. 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).
Hybrid Mutual Funds
LEARN MORE
Trends in the
Expenses and
Fees of Mutual
Funds, 2012,
ICI Research
Perspective.
Available at
www.ici.org/pdf/
per19-03.pdf.
With the exception of 2008, hybrid funds have seen inflows every year in
the past decade. Hybrid funds, also called asset allocation funds or balanced
funds, invest in a mix of stocks and bonds. The funds prospectus may
specify the asset allocation that the fund seeks to maintain, such as investing
approximately 65percent of the funds assets in equities and 35percent
in bonds. This approach offers a way to balance the potential capital
appreciation of common stocks with the income and relative stability of
bonds over the long term. The funds portfolio may be periodically rebalanced
to bring the funds asset allocation more in line with prospectus objectives,
which could be necessary following capital gains or losses in the stock or
bond markets.
Hybrid funds have become an increasingly popular way to help investors
achieve a managed, balanced portfolio of stocks and bonds. Over the past
seven years, investors have added $384billion in net new cash and reinvested
dividends to these funds (Figure2.11). In 2013 alone, investors added a record
$73billion in net new cash flow to hybrid funds, up from $47billion in 2012.
41
FIGURE2.11
3
c1
13
De
Ju
ly
13
n
12
Ja
Ju
ly
12
n
Ja
11
ly
Ju
11
Ja
10
ly
Ju
09
10
n
Ja
ly
Ju
09
n
Ja
08
ly
Ju
07
08
n
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
FIGURE2.12
114
34
61
35
27
25
26
2 8
7
1
2
2 31
21
18
17
2000
2001
2002
2003
2
2
16
40
7
6
28
8
8
11
28
2004
2005
33
8
11
17
10
28
14
35
10
31
59
56
58
55
27
24
20
29
19
17
16
14
18
15
2010
2011
2012
25
28
52
-6
2006
2007
2008
2009
2013
FIGURE2.13
Funds Indexed to the S&P 500 Held 33Percent of Index Mutual Fund Assets
Percent, year-end 2013
12%
World equity
33%
S&P 500
18%
Bond and hybrid
37%
Other domestic equity
Total: $1.7 trillion
43
FIGURE2.14
10.2
10.9
11.4
11.7
11.5
11.6
11.8
9.5
2000
2001
2002
2003
2004
2005
2006
2007
13.4
14.1
2008
2009
14.9
2010
16.4
2011
17.3
2012
18.4
2013
44
FIGURE2.15
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 ETFs,billions of dollars;
monthly, 20072013
800
Index domestic
equity mutual funds
600
400
200
-200
-400
3
c1
De
13
ly
13
Ju
12
Ja
ly
12
Ju
n
Ja
11
ly
Ju
11
n
10
Ja
Ju
ly
10
n
Ja
09
Ju
ly
09
n
Ja
08
ly
Ju
07
08
n
Ja
ly
Ju
Ja
07
-600
Note: Equity mutual fund flows include net new cash flow and reinvested dividends.
45
Outflows from money market funds were concentrated in the first four
months of 2013, during which investors redeemed $125billion, on net
(Figure2.16). Tax payments by corporations in mid-March and individuals
in mid-April were likely key drivers behind these redemptions. In addition,
in early 2013, investors appeared to have unwound money market fund
investments made near year-end 2012 as a result of uncertainties surrounding
the fiscal cliff. In the last two months of 2012, money market funds received
$145billion in new cash as some investors sold equity mutual funds to lock
in capital gains tax liabilities in anticipation that capital gains tax rates would
increase in 2013. Also, in advance of increases in tax rates at the end of 2012,
some corporations paid out hefty special dividends to stockholders and part
of this cash was funneled to money market funds.
LEARN MORE
Pricing of U.S.
Money Market
Funds, ICI
Research Report.
Available at
www.ici.org/
pubs/research.
FIGURE2.16
76
17
46
11
44
19
-2
-2
1
-1 -3
-3
-4
-7
-7
-11
28
8
15
8
15
48
2
-15
-16
-14
-3
-32
-36
23
-3
-8
-13
-24
-2
Apr
May
-8
-12
-17
27
3
10
20
14
19
-17
44
9
6
12
-30
36
-2
-12
5
4 1
16
30
-27
-12
-1
-6
-58
Sept* Oct
Nov
2012
Dec
Jan
Feb
Mar
Jun
Jul
Aug* Sept
2013
* In September 2012, investors withdrew $106 million from prime money market funds; in August 2013, investors withdrew $202
million from government money market funds; and in November 2013, investors withdrew $414 million from tax-exempt money
market funds.
46
After these tax-related influences waned in early 2013, outflows abated and
money market funds received inflows of $129billion over the second half
of the year (Figure2.16). Rising long-term interest rates over this period
likely caused investors to divert some cash to money market funds to avoid
capital losses in long-term bond funds by shifting toward shorter-horizon
investments.
Net inflow into money market funds during the second half of 2013 was
briefly interrupted in October by a prolonged U.S. government shutdown
and a congressional stalemate over whether to raise the U.S. borrowing
limit. Concern regarding the implications of a temporary suspension of
debt payments on maturing short-dated Treasury securities by the U.S.
government prompted investors to redeem $57billion from government
money market funds, which invest almost exclusively in U.S. Treasury and
agency securities, in the first 16 days of October.
47
LEARN MORE
Frequently
Asked Questions
About Money
Market Funds.
Available at
www.ici.org/
faqs.
FIGURE2.17
Net New Cash Flow to Taxable Retail Money Market Funds Is Related
to Interest Rate Spread
Monthly, 20002013
Percentage of total net assets
Percentage points
-1
-2
-3
-1
2001
2002
2003 2004
-2
2005
2006
2007
2008
2009
2010
2011
2012
2013
-3
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
1
48
Net New Cash Flow to Retail and Institutional Money Market Funds
Billions of dollars, 20002013
Retail
Institutional
173
114
482
523
36
44
116
96
339
-80
34
-112
-151
-68
-89
60
3 149
-231
-308
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
-123 -1
1
-1
27
-12
-401
-124
2010
2011
2012* 2013
* In 2012, investors added $1 billion to institutional money market funds and withdrew $1 billion from retail money market funds.
49
37
28
28
21
2000
2001
2002
31
28
23
21
21
23
2003
2004
2005
2006
2007
24
2008
2009
2010
23
22
2011
2012
20
2013
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
LEARN MORE
Money Market
Funds, Risk,
and Financial
Stability in the
Wake of the
2010 Reforms,
ICI Research
Perspective.
Available at
www.ici.org/
pdf/per19-01.
pdf.
For more complete data on money market funds, see section 4 in the data
tables on pages 196203.
FIGURE2.20
Prime Money Market Fund Holdings of Treasury and Agency Securities and Repurchase
Agreements
Percentage of prime funds total net assets; month-end, 20002013
40
36
35
30
28
25
20
15
12
10
5
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 2012
2013
51
$1.7 trillion
at year-end 2013
CHAPTER THREE
Exchange-Traded Funds
Over the past decade, demand for ETFs has grown markedly as investors
both institutional and retailincreasingly turn to them as investment options.
In the past 10 years, more than $1.2 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 $1.7 trillion in assets,
the U.S. ETF industry remained the largest in the world at year-end 2013.
While ETFs share some basic characteristics with mutual funds, there are key
operational and structural differences between the two types of investment
products.
This chapter provides an overview of exchange-traded funds (ETFs)how they are created, how they differ
from mutual funds, how they trade, the demand by investors for ETFs, and the characteristics of ETF-owning
households.
What Is an ETF?.......................................................................................................................................................... 54
U.S. ETF Assets........................................................................................................................................................... 55
Creation of an ETF...................................................................................................................................................... 56
ETFs and Mutual Funds.............................................................................................................................................. 58
Key Differences................................................................................................................................................... 58
How ETFs Trade.......................................................................................................................................................... 59
Demand for ETFs........................................................................................................................................................ 61
Characteristics of ETF-Owning Households........................................................................................................... 67
What Is an ETF?
An ETF is an investment company whose shares are traded intraday on stock
exchanges at market-determined prices. 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 other structures also existprimarily for ETFs investing in
commodities, currencies, and futures.
LEARN MORE
Frequently
Asked
Questions
About ETF
Basics and
Structure.
Available at
www.ici.org/
faqs.
ETFs have been available as an investment product for a little 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.
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
54
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
55
FIGURE 3.2
1,675
64
608
102
151
2002
2003
Number of ETFs
113
119
228
301
1
423
5
15
29 531
580
496
777
75
36
703
992
101
1,048
109
1,611
891
939
1,217
296
408
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
152
204
359
629
728
797
923
1,134
1,194
1,294
226
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.
1
Creation of an ETF
LEARN MORE
ETF Basics:
The Creation
and Redemption
Process and
Why It Matters.
Available at
www.ici.org/
etf_resources.
56
Creation of an ETF
Hold shares
Creation basket
and/or cash
Fund or trust
Authorized
participant
EXCHANGE-TRADED FUNDS
Investors
Trade on an
exchange
57
The authorized participant can either keep the ETF shares that make up the
creation unit or sell all or part of them on a stock exchange. ETF shares are
listed on a number of exchanges where investors can purchase them as they
would shares of a publicly traded company.
A creation unit is liquidated when an authorized participant returns the
specified number of shares in the creation unit to the ETF. In return, the
authorized participant receives the daily redemption basket, a set of specific
securities and/or other assets contained within the ETFs portfolio. The
composition of the redemption basket typically mirrors that of the creation
basket.
Key Differences
LEARN MORE
Frequently
Asked Questions
About How
ETFs Compare
with Other
Investments.
Available at
www.ici.org/
etf_resources.
58
One major difference is that retail investors buy and sell ETF shares on a
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.
Rather, retail investors buy and sell mutual fund shares through a variety of
distribution channels, including through investment professionals
full-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 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.
LEARN MORE
Frequently
Asked Questions
About ETFs and
Retail Investors.
Available at
www.ici.org/
etf_resources.
EXCHANGE-TRADED FUNDS
59
LEARN MORE
Frequently
Asked
Questions
About the U.S.
ETF Market.
Available at
www.ici.org/
etf_resources.
60
180
151
9
45
16
56 1
57
55
54
74
3
142
185
9
177
11
167
116
28
88
66
118
110
118
176
210
115
-30
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
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.
1
EXCHANGE-TRADED FUNDS
61
In 2013, changes in investor demand for specific types of ETFs were likely
related to relative performance across the stock, bond, and commodity
markets. Considerable gains in major U.S. stock indexes spurred demand
for domestic equity ETFs, while rising long-term interest rates in the United
States and tumbling commodity prices dampened demand for bond and
commodity ETFs (Figure 3.5). Net issuance of broad-based domestic equity
ETFs increased to $99billion in 2013 from $58billion in 2012 and domestic
sector equity ETFs experienced net issuance of $34billion in 2013, up from
$14billion in 2012. Demand for global and international equity ETFs remained
strong in 2013 with $63billion in net issuance, up from $52billion in 2012.
In contrast, bond and hybrid ETFs saw net issuance of $13billion in 2013,
down from $53billion in 2012, and commodity ETFs had net redemptions of
$30billion in 2013 compared with net issuance of $9billion in 2012.
FIGURE 3.5
2011
2012
2013
99
58
52
35
34
10 14
Broad-based
domestic equity
1
Domestic
sector equity
63
24
Global/International
equity
46
53
13
Bond and
hybrid1
-30
Commodities2
Bond ETFs represented 93.63percent of flows in the bond and hybrid category in 2013.
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
62
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
assets26percent, or $444billion, at year-end 2013 (Figure 3.6). Solid
performance in international stock markets and strong investor demand
over the past five years has propelled global/international equity ETFs to
the second-largest category with 24percent ($399billion) of all ETF assets.
Despite negative performance and slowing demand in 2013, bond and hybrid
ETFs accounted for 15percent ($247billion) of all ETF assets.
FIGURE 3.6
146
143
88
247
211
203
87
64
42
Large-cap
Mid-cap
Small-cap
Other
Domestic
sector
equity
Global
Bond
and
hybrid 3
Global/International
equity
2 This
EXCHANGE-TRADED FUNDS
63
Increased investor demand for ETFs led to a rapid increase in the number of
ETFs created by fund sponsors in the past decade (Figure 3.7). From yearend 2003 to year-end 2013, 1,469 ETFs were createdthe peak years came
in 2007, with 270 new funds, and 2011, with 226 new funds. In 2013, 143
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 2013, 46 ETFs were liquidated. On net, there were 97
more ETFs at year-end 2013 compared with year-end 2012, bringing the total
number of ETFs to 1,294.
FIGURE 3.7
Number of ETFs
20022013
Created
Liquidated
Total at year-end
2002
14
113
2003
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*
*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.
N ote: ETF data include ETFs not registered under the Investment Company Act of 1940 but exclude ETFs that invest primarily
in other ETFs.
64
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 2013, there were 311 commodity and sector
ETFs, with commodity ETFs representing the largest category at 24percent
(Figure 3.8). The second-largest category, natural resource ETFs, which hold
securities of publicly traded companies involved in mining or production of
natural resources, accounted for 16percent of the total number of sector and
commodity ETFs. Commodity and sector ETFs altogether held $267billion in
assets (Figure 3.9). Although commodity ETFs remained the largest category
in this group with 24percent of net assets at year-end 2013, their share was
down substantially from 47percent at year-end 2012. Net redemptions and
declining gold and silver prices were the primary drivers behind the drop in
commodity ETF assets in 2013.
LEARN MORE
Exchange-Traded
Funds Resource
Center. Available
at www.ici.org/
etf_resources.
EXCHANGE-TRADED FUNDS
65
FIGURE 3.8
24%
Commodities*
13%
Technology
7%
Real estate
8%
Consumer
16%
Natural resources
8%
Health
12%
Financial
FIGURE 3.9
24%
Commodities*
11%
Technology
11%
Real estate
9%
Consumer
14%
Natural resources
10%
Health
12%
Financial
66
LEARN MORE
Nine Questions
Every ETF
Investor Should
Ask Before
Investing.
Available
at www.
understandETFs.
org.
FIGURE 3.10
97
72
96
92
60
35
65
Individual equities
74
Individual bonds
21
33
48
EXCHANGE-TRADED FUNDS
67
Households
owning
individual
equities
All U.S.
households
Households
owning ETFs
Households
owning
mutual funds
51
49
52
52
$50,000
$96,800
$80,000
$90,000
$75,000
$450,000
$200,000
$300,000
Median
Age of head of household1
Household income2
Household financial
assets3
Percentage of households
Household primary or co-decisionmaker for saving and investing
63
80
76
75
Widowed
11
33
60
47
52
57
71
69
67
30
32
28
32
IRA(s)
38
78
63
65
53
77
85
76
Household owns
Age is based on the sole or co-decisionmaker for household saving and investing.
reported is household income before taxes in 2012.
3 Household financial assets include assets in employer-sponsored retirement plans but exclude the households primary
residence.
1
2 Total
68
LEARN MORE
For analysis on
exchange-traded
funds, visit
www.ici.org/
viewpoints/etfs.
FIGURE 3.12
12
21%
12
26
10
30%
35
45%
36
48
10
46
33
12
All U.S.
households
10
Mutual fundowning
households
EXCHANGE-TRADED FUNDS
4
ETF-owning
households
69
59 percent
in bond closed-end funds
CHAPTER FOUR
Closed-End Funds
This chapter describes recent closed-end fund developments in the United States and provides a profile of the
U.S. households that own them.
What Is a Closed-End Fund?. . ................................................................................................................... 72
Total Assets of Closed-End Funds............................................................................................................ 73
Net Issuance of Closed-End Funds. . ...........................................................................................................75
Closed-End Fund Distributions..................................................................................................................76
Closed-End Fund Leverage........................................................................................................................77
Characteristics of Households Owning Closed-End Funds........................................................................ 80
LEARN MORE
Closed-End
Fund Resource
Center.
Available at
www.ici.org/
cef.
72
LEARN MORE
The Closed-End
Fund Market,
2013. Available
at www.ici.org/
pdf/per20-01.
pdf.
FIGURE4.1
253
276
297
312
223
214
2003
238
243
264
279
184
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Number of funds
583
619
635
646
663
642
627
624
632
602
599
CLOSED-END FUNDS
73
5%
Global/International bond
20%
Domestic equity
5%
Global/International equity
44%
Domestic municipal bond
26%
Domestic taxable bond
2003 total assets: $214 billion
8%
Global/International bond
29%
Domestic equity
30%
Domestic municipal bond
12%
Global/International equity
21%
Domestic taxable bond
2013 total assets: $279 billion
74
Equity
Total
2007 $28,369
Bond
Domestic Domestic
Global/
taxable municipal International
Total
Domestic
Global/
International
$24,608
$4,949
$19,659
$3,761
$1,966
-$880
$2,675
-13,560
-6,770
-6,089
-700
Total
2008
-22,298
-8,739
-7,052
-1,687
2009
-2,759
-2,020
-1,866
-154
-739
-788
-238
287
2010
5,520
2,054
1,995
59
3,466
1,990
1,119
357
2011
6,018
4,466
3,206
1,260
1,551
724
825
2012
10,492
2,936
2,840
96
7,556
3,249
2,226
2,081
2013
10,107
3,355
3,898
-543
6,752
3,933
-159
2,978
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.
1
Net issuance of bond closed-end funds, most of which occurred in the first
half of the year, accounted for two-thirds ($6.8billion) of total net issuance in
2013. Bond closed-end fund net issuance fell off in the second half of the year
as investors started pulling back from fixed-income securities. Bond prices
fell and long-term interest rates rose, as market participants anticipated
that the Federal Reserve was contemplating tapering back its large-scale
monthly bond buying program. Domestic taxable bond funds were popular,
with $3.9billion in net issuance, followed by global/international bond funds
with $3.0billion. Domestic municipal bond funds had net redemptions of
$159million.
CLOSED-END FUNDS
75
14%
Return of capital
12%
Capital gains distributions
74%
Income distributions
76
LEARN MORE
Closed-end funds have the ability, subject to strict regulatory limits, to use
leverage as part of their investment strategy. The use of leverage by a closedend fund can allow it to achieve higher long-term returns, but also increases
risk and the likelihood of share price volatility. Closed-end fund leverage can
be classified as either structural leverage or portfolio leverage. At year-end
2013, at least 391 funds, accounting for 65percent of closed-end funds,
were using structural leverage, certain types of portfolio leverage (tender
option bonds or reverse repurchase agreements), or both as a part of their
investment strategy (Figure4.5).
Frequently Asked
Questions About
Closed-End
Funds and Their
Use of Leverage.
Available at
www.ici.org/cef.
FIGURE4.5
429
424
407
382
377
362
256
252
2012:Q1
2012:Q2
400
358
399
353
395
346
398
345
391
337
231
219
217
212
212
214
2012:Q3
2012:Q4
2013:Q1
2013:Q2
2013:Q3
2013:Q4
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.
1
CLOSED-END FUNDS
77
Structural leverage, the most common type of leverage, affects the closedend funds capital structure by increasing the funds portfolio assets. Types
of closed-end fund structural leverage include borrowing and issuing debt
and preferred shares. At the end of 2013, 337 funds had a total of $48.6billion
in structural leverage, with a little more than half (56percent) of those
assets from preferred shares (Figure4.6). Forty-fourpercent of closed-end
fund structural leverage was other structural leverage. The average leverage
ratio* across those closed-end funds employing structural leverage was
27.2percent at year-end 2013. Among bond funds employing structural
leverage, the average leverage ratio was somewhat higher (29.3percent)
than that of equity funds (19.8percent) employing structural leverage.
FIGURE4.6
56%
Preferred shares 1
44%
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.
78
4.8
5.1
2012:Q1
2012:Q2
5.7
2012:Q3
6.3
2012:Q4
11.3
10.9
10.8
10.4
9.8
9.7
10.6
10.5
7.3
7.2
7.1
7.1
2013:Q1
2013:Q2
2013:Q3
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
79
96
68
91
88
50
40
60
Individual equities
77
Individual bonds
23
43
43
LEARN MORE
A Guide to
Closed-End
Funds. Available
at www.ici.org/
cef.
80
Closed-End Fund Investors Had Above-Average Household Incomes and Financial Assets
May 2013
All U.S.
households
Households
owning
closed-end
funds
Households
owning
mutual
funds
Households
owning
individual
equities
51
54
52
52
$50,000
$94,000
$80,000
$90,000
$75,000
$500,000
$200,000
$300,000
Median
Age of head of household1
Household
income2
Household financial
assets3
Percentage of households
Household primary or co-decisionmaker for saving and investing
63
77
76
75
Widowed
11
33
50
47
52
57
67
69
67
30
38
28
32
IRA(s)
38
80
63
65
53
76
85
76
Household owns
Age is based on the sole or co-decisionmaker for household saving and investing.
reported is household income before taxes in 2012.
3 Household financial assets include assets in employer-sponsored retirement plans but exclude the households primary
residence.
1
2 Total
CLOSED-END FUNDS
81
74 basis points
in average expenses paid on equity funds in 2013
CHAPTER FIVE
Mutual fund investors, like investors in all financial products, pay for services they receive. This chapter
provides an overview of mutual fund expenses and fees.
Trends in Mutual Fund Expenses .................................................................................................................................................................................................... 84
Understanding the Decline in Fund Expense Ratios ........................................................................................................................................ 86
Understanding Differences in the Expense Ratios of Mutual Funds ................................................................................................. 92
Mutual Fund Load Fees ............................................................................................................................................................................................................................ 96
* In this chapter, unless otherwise noted, average expenses are calculated on an asset-weighted basis.
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).
84
FIGURE5.1
Expenses Incurred by Mutual Fund Investors Have Declined Substantially Since 2000
Basis points, 20002013
Equity funds
99
2000
99
2001
100
100
95
91
88
86
83
87
2002
2003
2004
2005
2006
2007
2008
83
79
77
74
2009
2010
2011
2012
2013
84
82
80
79
80
Hybrid funds
89
89
89
90
85
81
78
77
77
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Bond funds
76
75
74
75
72
68
67
64
61
64
63
62
61
61
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
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
85
Mutual Fund Expense Ratios Tend to Fall as Fund Total Net Assets Rise
Share classes of domestic equity mutual funds continuously in existence since 2000 1
Basis points
Billions of dollars
100
95
90
2,004
1,920
1,684
1,299
85
80
75
70
2,325 2,366
2,108
2,000
1,754
1,751
1,644
2,500
1,595
1,687
1,500
1,312
1,000
Average
expense
ratio 2
500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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
1
86
LEARN MORE
Trends in the
Expenses and
Fees of Mutual
Funds, 2012,
ICI Research
Perspective.
Available at
www.ici.org/pdf/
per19-03.pdf.
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 2013, the number of households
owning mutual funds more than doubledfrom 23.4million to 56.7million.
Over the same period, the number of shareholder accounts more than
quadrupledfrom 61.9million to 264.8million. Such sharp increases in
demand would, by themselves, tend to boost fund expense ratios. Any such
tendency, however, was mitigated by downward pressure on expense ratios
from competition among existing fund sponsors, new fund sponsors entering
the industry, competition from products like exchange-traded funds (ETFs)
(see chapter 3), and economies of scale resulting from the growth in fund
assets.
FIGURE5.3
99
2000
165
99
2001
166
100
2002
168
100
2003
159
95
2004
154
151
146
146
150
146
142
140
137
91
88
86
83
87
83
79
77
74
2005
2006
2007
2008
2009
2010
2011
2012
2013
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
87
27
32
Actively managed
equity funds 1
74
72
68
28
26
Data exclude mutual funds available as investment choices in variable annuities and mutual funds that invest primarily in other
mutual funds.
2 Data include the full universe of target date funds, 97percent of which invest primarily in other mutual funds.
Sources: Investment Company Institute and Lipper
1
88
Total Net Assets and Number of Index Mutual Funds Have Increased
in Recent Years
Billions of dollars, 20002013
Total net assets of index bond and hybrid funds
Total net assets of index equity funds
1,735
306
1,311
1,017
384
27
370
36
357
334
327
46
281
455
51
404
554
60
494
619
71
548
748
83
665
855
107
836
602
121
748
481
193
1,093
281
238
1,429
158
678
824
855
1,030
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Number of index funds
271 286 313 321
328
322
342
354
359
357
365
382
372
372
Note: Data exclude mutual funds that invest primarily in other mutual funds.
* Unless otherwise noted, the discussion and figures in this section exclude exchange-traded funds (ETFs), which are
examined separately in chapter 3.
89
90
FIGURE5.6
106
100
80
78
89
65
60
40
20
0
27
21
Index bond funds
12
11
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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 2013, for
example, 66percent 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.
91
FIGURE5.7
Investment objective
Equity funds 1
Growth
Sector
Median
90th
percentile
Assetweighted
average
Simple
average
74
129
213
74
137
77
125
204
85
132
10th
percentile
80
137
221
83
144
125
177
276
135
188
Value
75
121
200
83
129
Blend
47
111
194
50
116
World
90
142
225
90
151
64
116
198
80
125
49
88
167
61
100
48
90
173
62
102
50
80
157
57
95
10
16
27
17
17
50
101
167
58
104
Alternative strategies
Hybrid
Bond
funds 1
funds 1
Taxable
Municipal
Money market
Target date
funds 1
funds 2
Data exclude mutual funds available as investment choices in variable annuities and mutual funds that invest primarily in
other mutual funds.
2 Data include the full universe of target date funds, 97percent of which invest primarily in other mutual funds.
Note: Data include index mutual funds but exclude exchange-traded funds.
Sources: Investment Company Institute and Lipper
1
92
Even within a particular investment objective, fund expense ratios can vary
considerably. For example, 10percent of equity funds that focus on growth
stocks have expense ratios of 77 basis points or less, while another 10percent
have expense ratios of 204 basis points or more. This variation reflects,
among other things, the fact that some growth funds focus more on small- or
mid-cap stocks and others focus more on large-cap stocks. This is important
because portfolios of small- and mid-cap stocks tend to cost more to manage.
LEARN MORE
The Economics
of Providing
401(k) Plans:
Services, Fees,
and Expenses,
2012, ICI
Research
Perspective.
Available at
www.ici.org/pdf/
per19-04.pdf.
FIGURE5.8
Fund assets
10thpercentile
$21
$14,794
25thpercentile
77
27,815
310
73,660
75thpercentile
1,194
256,082
90thpercentile
3,584
1,790,944
Millions of dollars
Median
Dollars
Data exclude mutual funds available as investment choices in variable annuities and mutual funds that invest primarily in
other mutual funds.
2 The average account balance is calculated at the fund level as total fund assets divided by the total number of shareholder
accounts, which include a mix of individual and omnibus accounts.
1
93
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). 12b-1 fees also can be used to pay for a funds advertising and marketing, but these
uses are minimal in practice.
94
Front-end load shares, which are predominantly Class A shares, were the traditional way
investors compensated financial professionals for assistance. These shares generally charge
a sales loadapercentage of the sales price or offering priceat the time of purchase. They
also generally have a 12b-1 fee, often 0.25percent (25 basis points). Front-end load shares
are sometimes used in employer-sponsored retirement plans, but fund sponsors typically
waive the sales load for purchases made through such retirement plans. Additionally,
front-end load fees often decline as the size of an investors initial purchase rises (called
breakpoint discounts), and many fund providers offer discounted load fees when an investor
has total balances exceeding a given amount in that providers funds (called rights of
accumulation).
Back-end load shares, which are primarily 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. Backend 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). In part because of this conversion feature, 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.
95
96
FIGURE5.9
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
2013
5.3
5.2
3.8
1.0
1.0
0.7
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 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 (simple average) 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
1
97
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 level load and no-load
share classes have increased substantially. For example, front-end and backend load share classes saw net outflows totaling $559 billion (Figure 5.10)
and saw their share of long-term mutual fund assets fall from 31percent to
18percent from year-end 2004 to year-end 2013 (Figure 5.11).
By contrast, level load and no-load share classes have seen net inflows
and rising assets over the past 10 years. Although demand for level load
share classes, which have a 12b-1 fee of at least 0.25percent of assets, has
weakened in recent years, these funds have seen modest inflows over the last
decade. No-load share classes have accumulated the bulk of the inflows to
long-term funds in the past 10 years. In 2013, no-load share classes accounted
for 64percent of long-term fund assets, up from 49percent in 2004.
FIGURE5.10
Nearly All Net New Cash Flow Was in No-Load Institutional Share Classes
Billions of dollars, 20042013
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$210
$192
$227
$224 -$225
$389
$241
$26
$196
$152
42
22
30
10
-151
15
-60
-133
-83
-71
Front-end load1
48
41
44
18
-105
-57
-101
-67
-58
load2
All long-term
mutual funds
Load
Back-end
-40
-47
-47
-42
-39
-24
-27
-23
-16
-11
Level
load3
32
29
34
37
-9
36
22
-10
-8
Other
load4
-1
Unclassified
-1
-1
-2
No-load 5
132
152
173
190
-48
345
293
181
307
277
Retail
103
80
89
84
-77
159
86
-30
32
58
29
72
84
106
29
186
208
211
275
219
36
18
24
25
-26
29
-21
-28
-53
Institutional
Variable annuities
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. Primarily includes retirement share
classes, known as Class R shares.
5 Front-end load = 0percent, CDSL = 0percent, and 12b-1 fee 0.25percent.
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
98
FIGURE5.11
Total Net Assets of Long-Term Mutual Funds Are Concentrated in No-Load Share Classes
Billions of dollars, 20042013
2004
All long-term
mutual funds
2005
2006
2007
2008
2009
2010
2011
2012
2013
$6,194 $6,864 $8,059 $8,914 $5,770 $7,797 $9,027 $8,935 $10,350 $12,299
2,197
2,347
2,683
2,864
1,770
2,253
2,440
2,254
2,435
2,769
Front-end load1
1,570
1,728
2,026
2,190
1,374
1,749
1,881
1,749
1,890
2,144
Back-end load2
334
271
241
204
102
98
78
50
39
32
Level load3
275
322
392
448
284
396
459
438
493
568
load4
16
17
15
10
18
16
11
16
Unclassified
Load
Other
13
No-load 5
3,056
3,478
4,152
4,705
3,147
4,413
5,297
5,431
6,519
7,917
Retail
2,199
2,452
2,875
3,205
2,030
2,820
3,280
3,203
3,733
4,484
857
1,026
1,276
1,500
1,117
1,592
2,016
2,228
2,787
3,433
941
1,039
1,225
1,346
854
1,131
1,291
1,250
1,396
1,614
Institutional
Variable annuities
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. Primarily includes retirement share
classes, known as Class R shares.
5 Front-end load = 0percent, CDSL = 0percent, and 12b-1 fee 0.25percent.
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
Some of the shift toward no-load share classes can be attributed to doit-yourself investors. However, much of the shift represents sales through
defined contribution 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).
99
72 percent
saving primarily for retirement
CHAPTER SIX
Characteristics of
Mutual Fund Owners
Ownership of mutual funds by U.S. households grew significantly in the 1980s
and 1990s and has remained steady over the past decade. On average, the
household ownership rate of mutual funds has been 45 percent since 2000.
In 2013, 46 percent of all U.S. households owned mutual funds. The estimated
96 million individuals who owned mutual funds in 2013 included many
different types of people across all age and income groups with a variety of
financial goals. These fund investors purchase and sell mutual funds through
four principal sources: investment professionals (e.g., registered investment
advisers, full-service brokers, independent financial planners), employersponsored retirement plans, fund companies directly, and fund supermarkets.
This chapter looks at the characteristics of individual and institutional owners of U.S. mutual funds and examines
how these investors purchase fund shares.
Individual and Household Ownership of Mutual Funds...................................................................................... 102
Mutual Fund Ownership by Age and Income................................................................................................. 104
Savings Goals of Mutual Fund Investors........................................................................................................ 107
Where Investors Own Mutual Funds...................................................................................................................... 107
Sources of Mutual Fund Purchases................................................................................................................. 109
Shareholder Sentiment, Willingness to Take Investment Risk, and Confidence............................................. 111
Shareholders Use of the Internet.......................................................................................................................... 115
Institutional Ownership of Mutual Funds.............................................................................................................. 118
48.6
50.3
53.2
52.9
53.8
56.7
2000
2005
2010
2011
2012
2013
45.3
44.1
44.4
46.3
23.4
28.4
12.8
4.6
1980
1985
1990
1995
Sources: Investment Company Institute and U.S. Census Bureau. See ICI Research Perspective, Ownership of Mutual Funds,
Shareholder Sentiment, and Use of the Internet, 2013.
102
FIGURE6.2
103
were married or living with a partner, and 47 percent were college graduates.
Sixty-nine percent of these individuals worked full- or part-time.
LEARN MORE
Ownership of
Mutual Funds,
Shareholder
Sentiment,
and Use of the
Internet, 2013,
ICI Research
Perspective.
Available at
www.ici.org/pdf/
per19-09.pdf.
FIGURE6.3
60
58
49
37
31
Younger than 35
35 to 44
45 to 54
55 to 64
65 or older
104
FIGURE6.4
The U.S. Population and Mutual Fund Shareholders Are Getting Older
Percent distribution of all U.S. households and households owning mutual funds by age group,
May 1994 and May 2013
21
23
13
19
17
13
18
13
23
21
20
23
25
29
17
19
26
21
24
1994
2013
1994
15
2013
Note: Age is based on the age of the sole or co-decisionmaker for household saving and investing.
Sources: Investment Company Institute and U.S. Census Bureau. See ICI Research Perspective, Ownership of Mutual Funds,
Shareholder Sentiment, and Use of the Internet, 2013.
FIGURE6.5
Household income
$100,000 or more
81
$75,000 to $99,999
67
$50,000 to $74,999
55
$35,000 to $49,999
39
$25,000 to $34,999
Less than $25,000
69%
$50,000 or more
27
23%
Less than $50,000
12
105
Although individuals across all income groups own mutual funds, households
with higher incomes are more likely to own mutual funds than lowerincome households. In 2013, 69 percent of all U.S. households with incomes
of $50,000 or more owned mutual funds, compared with 23 percent of
households with incomes of less than $50,000 (Figure 6.5). In fact, lowerincome households are less likely to have any type of savings. The typical
household with income less than $50,000 had $7,500 in savings and
investments, while the typical household with income of $50,000 or more
held $200,000 in savings and investments.
U.S. households owning mutual funds represent a range of incomes. Twentyfour percent of mutual fundowning households had household incomes of
less than $50,000; 21 percent had household incomes between $50,000 and
$74,999; 17 percent had incomes between $75,000 and $99,999; and the
remaining 38 percent had incomes of $100,000 or more (Figure 6.6). The
median household income of mutual fundowning households was $80,000
(Figure 6.2).
FIGURE6.6
5
17
12
17
13
11
25
All U.S. households
8
30
17
21
12
6
6
Households owning
mutual funds
106
LEARN MORE
Characteristics
of Mutual Fund
Investors, 2013,
ICI Research
Perspective.
Available at
www.ici.org/pdf/
per19-10.pdf.
107
with 19 percent owning funds only outside such plans. For mutual fund
owning households without funds in workplace retirement accounts,
56 percent held funds in traditional or Roth IRAs, and in many cases, these
IRAs held assets rolled over from 401(k)s or other employer-sponsored
retirement plans (either defined benefit or DC plans).
FIGURE6.7
1990
to 1994
1995
to 1999
2000
to 2004
2005
or later
Memo:
all mutual
fundowning
households
52
68
73
67
63
62
Outside employer-sponsored
retirement plans
48
32
27
33
37
38
Note: 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).
Source: ICI Research Perspective, Characteristics of Mutual Fund Investors, 2013
108
FIGURE6.8
42%
Investment
professionals
only 2
39%
Investment professionals 2
and fund companies, fund
supermarkets, or
discount brokers
12%
Fund companies, fund
supermarkets, or discount
brokers
7%
Source unknown
Employer-sponsored retirement plans include DC plans (such as 401(k) plans, 403(b) plans, or 457 plans) and employersponsored 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, 2013
1
109
FIGURE6.9
Nearly Half of Mutual FundOwning Households Held Shares Through Multiple Sources
Percentage of U.S. households owning mutual funds, May 2013
Inside employer-sponsored
retirement plans1
18%
39%
Investment professionals2
8%
16%
7%
5%
2%
Nearly half (49 percent) of mutual fundowning households held mutual funds
through multiple sources. In May 2013, 18 percent of mutual fundowning
households held mutual funds both inside employer-sponsored retirement
plans and through investment professionals; 5 percent owned mutual funds
both inside employer-sponsored retirement plans and directly through fund
companies, fund supermarkets, or discount brokers; and 7 percent held
mutual funds through investment professionals and fund companies, fund
supermarkets, or discount brokers (Figure 6.9). Another 16 percent owned
mutual funds through all three source categories. When owning funds through
only one source category, the most common was employer-sponsored
retirement plans: 39 percent of mutual fundowning households owned funds
only through their employer-sponsored retirement plans.
110
Mutual Fund Industry Favorability Rises and Falls with Stock Market Performance
Percentage of mutual fund shareholders familiar with mutual fund companies, 20002013
1,418
28
1,511
1,290
1,270
22
18
1,079
55
57
2000 2001
56
16
16
1,103
1,178
15
19
20
1,403
16
936
55
1,338 1,341
1,125
10
12
13
15
14
54
51
2011
2012
2013
69
65
68
902
56
59
57
57
57
54
55
76
77
73
64
67
55
The mutual fund industry favorability rating is thepercentage of mutual fund shareholders familiar with the mutual fund
industry who have a very or somewhat favorable impression of the fund industry. The survey question on mutual fund
industry favorability had five choices; the other three possible responses were somewhat unfavorable, very unfavorable,
and no opinion.
2 The S&P 500 is an index of 500 stocks chosen for market size, liquidity, and industry group representation.
Sources: Investment Company Institute and Standard & Poors. See ICI Research Perspective, Ownership of Mutual Funds,
Shareholder Sentiment, and Use of the Internet, 2013.
1
111
FIGURE6.11
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,
19882013
Percent
2,000
24
1,800
22
1,600
1,400
20
1,200
18
1,000
800
16
600
14
400
12
200
13
12
11
10
09
08
07
06
05
04
03
02
01
00
99
98
97
96
95
94
93
92
91
10
90
88
89
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
MORE INFO
LEARN MORE
Profile of
Mutual Fund
Shareholders,
2013, ICI
Research Report.
Available at
www.ici.org/pdf/
rpt_14_profiles.
pdf.
112
FIGURE6.12
23
4
15
19
4
15
37
37
38
11
10
32
40
2008
33
44
2009
33
4
15
19
10
43
19
5
14
19
5
16
35
35
36
10
10
10
36
2010
2011
46
36
46
2012
33
21
43
2013
5
36
25
30
7 14
7
2008
10
11
30
21
2009
11
10
25
48
49
49
50
25
29
21
2010
10
13
5
23
4
28
2011
11
12
30
48
49
23
26
23
2012
12
10
22
2013
11
4
7
711
4
7
11
4
6
10
6
6
12
5
6
26
27
27
25
23
26
11
10
55
2008
63
51
62
2009
53
2010
62
55
2011
65
56
2012
65
54
11
63
2013
Source: ICI Research Perspective, Ownership of Mutual Funds, Shareholder Sentiment, and Use of the Internet, 2013
113
FIGURE6.13
Very confident
Somewhat confident
86
86
84
85
79
82
80
80
17
24
21
24
21
72
29
32
31
26
57
54
53
59
55
55
61
56
59
2005
2006
2007
2008
2009
2010
2011
2012
2013
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, 2013
to help them achieve their financial goals, compared with 85 percent in 2008
(Figure 6.13). From 2010 through 2013, about eight in 10 mutual fundowning
households said they were confident in mutual funds ability to help them
achieve their financial goals. Indeed, more than one-fifth of fund investors
from 2010 to 2013 were very confident that mutual funds could help them
meet their financial goals.
114
All U.S.
households
Mutual fundowning
households
Households
with DC plans 1
Younger than 35
93
93
95
35 to 49
91
96
96
50 to 64
84
93
92
65 or older
57
79
75
66
80
80
89
94
92
93
96
97
69
78
77
$50,000 to $99,999
92
95
96
$100,000 to $149,999
94
96
96
$150,000 or more
96
97
97
Total
82
92
91
Education level
Household income 3
DC plans include 401(k) plans, 403(b) plans, 457 plans, Keoghs, and other DC plans without 401(k) features.
is based on the sole or co-decisionmaker for household saving and investing.
3 Total reported is household income before taxes in 2012.
Note: Internet access includes access to the Internet at home, work, or some other location.
Source: ICI Research Perspective, Ownership of Mutual Funds, Shareholder Sentiment, and Use of the Internet, 2013
1
2 Age
115
Most Mutual Fund Shareholders Used the Internet for Financial Purposes
Percentage of U.S. households with Internet access by mutual fund ownership and online activities in the
past 12 months, 1, 2 May 2013
Households owning
mutual funds
Households not
owning mutual funds
Accessed email
94
86
82
56
77
53
54
17
19
90
71
75
58
83
61
Online activities are based on the sole or co-decisionmaker for household saving and investing.
this survey, the past 12 months were June 2012 through May 2013.
Note: Internet access includes access to the Internet at home, work, or some other location.
Source: ICI Research Perspective, Ownership of Mutual Funds, Shareholder Sentiment, and Use of the Internet, 2013
1
2 For
116
FIGURE6.16
Mutual Fund Shareholders Use of the Internet by Age, Education, and Income
Percentage of U.S. households with Internet access by mutual fund ownership and online activities
in past 12 months, 1, 2 May 2013
Accessed email
Younger than 35
98
86
91
35 to 49
95
85
93
50 to 64
94
83
90
65 or older
87
70
82
85
67
82
94
79
89
97
90
94
88
66
82
$50,000 to $99,999
93
82
87
$100,000 to $149,999
98
91
95
$150,000 or more
97
88
97
Total
94
82
90
Education level
Household income 4
Online activities are based on the households sole or co-decisionmaker for saving and investing.
this survey, the past 12 months were June 2012 through May 2013.
3 Age is based on the sole or co-decisionmaker for household saving and investing.
4 Total reported is household income before taxes in 2012.
Note: Internet access includes access to the Internet at home, work, or some other location.
Source: ICI Research Perspective, Ownership of Mutual Funds, Shareholder Sentiment, and Use of the Internet, 2013
1
2 For
117
$1,792
Households1 money
market funds
$927
Institutional investors
money market funds
$584
Institutional investors
long-term mutual funds 2
$11,715
Households1 long-term
mutual funds 2
Total mutual fund assets: $15,018 billion
Total long-term2 mutual fund assets: $12,299 billion
Total money market fund assets: $2,718 billion
$147
47
100
213
Mutual funds held as investments in variable annuities and 529 plans are counted as household holdings of mutual funds.
mutual funds include equity, hybrid, and bond mutual funds.
3 This category includes state and local governments and other institutional accounts not classified.
Note: Components may not add to the total because of rounding.
1
2 Long-term
118
LEARN MORE
For analysis on
fund investors,
visit www.ici.
org/viewpoints/
inv_research.
119
$23.0 trillion
at year-end 2013
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
in tax-advantaged
tax-advantaged accounts
accounts to
to reach
reach these
these goals,
goals, ICI
ICI studies
studies the
the U.S.
U.S.
funds
retirement
retirement market;
market; the
the investors
investors who
who use
use IRAs,
IRAs, 401(k)
401(k) plans,
plans, 529
529 plans,
plans, and
and
other
other tax-advantaged
tax-advantaged savings
savings vehicles;
vehicles; and
and the
the role
role of
of funds
funds in
in the
the retirement
retirement
and
and education
education savings
savings markets.
markets.
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................................................................................................................................... 122
Retirement Resource Pyramid....................................................................................................................... 122
Snapshot of U.S. Retirement Market Assets................................................................................................. 126
Defined Contribution Retirement Plans................................................................................................................ 129
401(k) Participants: Asset Allocation, Account Balances, and Loan Activity............................................. 130
Services and Expenses in 401(k) Plans.......................................................................................................... 135
Individual Retirement Accounts............................................................................................................................. 138.
IRA Investors.................................................................................................................................................... 139
Traditional IRA Portfolios................................................................................................................................ 142
Distributions from Traditional IRAs................................................................................................................ 144
The Role of Mutual Funds in Households Retirement Savings.......................................................................... 147
Types of Mutual Funds Used by Retirement Plan Investors.......................................................................... 149
The Role of Mutual Funds in Households Education Savings............................................................................ 152
LEARN MORE
For analysis
on key 401(k)
issues, visit
www.ici.org/
viewpoints/
401k.
122
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
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 ($113,700 in 2013). 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 1940s, the
Congressional Budget Office (CBO) projects that median first-year Social
Security benefits will replace 77percent of average lifetime earnings for the
bottom 20percent of retired workers ranked by lifetime household earnings
(Figure7.2). The median replacement rate drops to 51percent 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 (32percent)
of earnings.
LEARN MORE
The Success
of the U.S.
Retirement
System.
Available at
www.ici.org/
pubs/white_
papers.
123
Lowest
45
Second
Middle
40
Fourth
32
Highest
124
FIGURE7.3
96
81
43
48
40
38
28
9
11
43
95
20
32
45
12
14
Lower
Lower-Middle
Middle
7
Upper-Middle
Less than
$30,000
$30,000 to
$54,999
$55,000 to
$79,999
$80,000 to
$149,999
45
31
3
Higher
10
$150,000
or more
All
125
Other plans 1
DC plans 2
IRAs 3
18.0
14.6
11.6
10.5
8.9
7.6
16.4
14.2
7.1
18.2
18.2
8.6
8.7
4.0
4.5
4.5
7.9
19.9
10.6
9.4
5.9
7.0
6.1
5.5
4.0
2.9
2.5
2.5
3.4
4.7
3.7
4.5
5.0
5.0 e
5.6 e
6.5 e
2002
2005
2007
2008
2009
2010
2011
2012
2013
1.7
1995
1.3 2.6
2000
3.6
4.4
3.4
5.0
Other plans include private-sector DB plans; federal, state, and local pension 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 and Federal Employees Retirement System
(FERS) Thrift Savings Plan (TSP).
2 DC plans include 401(k) plans, 403(b) plans, 457 plans, Keoghs, and other 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, and Internal Revenue Service Statistics of Income
Division. See The U.S. Retirement Market, Fourth Quarter 2013.
1
126
LEARN MORE
The Role of
IRAs in U.S.
Households
Saving for
Retirement,
2013, ICI
Research
Perspective.
Available at
www.ici.org/pdf/
per19-11.pdf.
FIGURE7.5
33%
Did not have IRA or
employer-sponsored
retirement plan
6%
Had IRA only1
32%
Had IRA and
employer-sponsored
retirement plan1, 2
29%
Had employer-sponsored
retirement plan only2
Total number of U.S. households: 122.5 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, 2013.
2 Employer-sponsored
127
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,
71percent of households born in the 1960s owned IRAs or DC plan accounts,
almost the same as the 1950s birth cohort a decade earlier. Recent experience
could indicate that long-term growth in ownership has stabilized, or it could
just reflect a temporary pause in the long-term trend caused by the weak
economy.
FIGURE7.6
100
1988
90
80
70
1993
1998
2003
2008
2013
60
50
40
30
20
10
0
20
25
30
35
40
45
50
55
60
65
70
75
80
128
LEARN MORE
The U.S.
Retirement
Market, Fourth
Quarter 2013.
Available at
www.ici.org/
research/stats.
FIGURE7.7
1,706
482
360
864
1995
2,867
500
628
2,474
372
533
1,739
1,569
2000
2002
3,575
413
763
2,399
2005
4,357
461
912
2,983
2007
3,372
411
753
2,208
2008
4,010
402
862
2,746
2009
4,983
455
4,543
449
947
4,499
420
938
1,018
3,148
3,141
3,510
2010
2011
2012
5,860
525
1,146
4,190
2013
* Other DC plans include Keoghs and other DC plans (profit-sharing, thrift-savings, 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
129
LEARN MORE
401(k) Plan
Asset Allocation,
Account
Balances, and
Loan Activity
in 2012, ICI
Research
Perspective.
Available at
www.ici.org/pdf/
per19-12.pdf.
130
FIGURE7.8
3.1%
GICs and other stable
value funds
5.5%
6.4%
Company stock
Other funds
1.9%
Money funds
6.4%
Bond funds
30.7%
Equity funds
11.7%
Nontarget date
balanced funds
34.2%
Target date funds
Participants in their sixties
6.7%
Company stock
15.3%
GICs and other stable
value funds
32.2%
Equity funds
5.5%
Other funds
5.6%
Money funds
15.2%
Bond funds
12.5%
Target date funds
6.9%
Nontarget date
balanced funds
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 2012.
131
FIGURE7.9
20
64
16
26
19
2 5 1
9
Participants in
their twenties
14
8
16
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.
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 2012.
132
In 2012, 72percent of 401(k) plans offered target date funds, and 68percent
of 401(k) plan participants were offered target date funds (Figure7.10).
Because not all plan participants choose to allocate assets to these funds,
thepercentage of 401(k) participants with target date fund assets was lower
than thepercentage of participants who were offered the option. At year-end
2012, 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.
FIGURE7.10
2006
2012
72
62
57
68
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 pooled investment products.
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 2012.
133
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 $224,287 at year-end
2012 (Figure7.11). Participants in their forties with five to 10 years of tenure at
their current employer had an average 401(k) balance of $53,060. The median
401(k) plan participant was 45 years old at year-end 2012, and the median job
tenure was eight years.
FIGURE7.11
401(k) Balances Tend to Increase with Participant Age and Job Tenure
Average 401(k) participant account balance, year-end 2012
$250,000
60s
50s
$200,000
40s
$150,000
$100,000
30s
$50,000
20s
$0
0 to 2
>2 to 5
>5 to 10
>10 to 20
>20 to 30
>30
Loan Activity
Most 401(k) participants do not borrow from their plans, though in recent
years loan activity has edged up. At year-end 2012, 21percent of participants
eligible for loans had loans outstanding. However, not all participants have
access to 401(k) plan loansfactoring 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 2012. The average unpaid loan balances among
participants with loans represented about 13percent 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 2011.
134
LEARN MORE
The Economics
of Providing
401(k) Plans:
Services, Fees,
and Expenses,
2012, ICI
Research
Perspective.
Available at
www.ici.org/pdf/
per19-04.pdf.
As with any employee benefit, the employer generally determines how the
costs will be shared between the employer and employee. 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 (Figure7.12).
135
FIGURE7.12
Participants
Recordkeeper/
Retirement
service provider
Recordkeeping/
Administrative
payment
Recordkeeping;
(percentage
distribution
of assets)
Investment provider(s)
LEARN MORE
Inside the
Structure
of Defined
Contribution/
401(k) Plan Fees:
A Study Assessing
the Mechanics of
the All-In Fee.
Available at
www.ici.org/
pubs/research/
reports.
136
One key driver of 401(k) plan fees is plan size. A Deloitte/ICI study of 525 DC
plans in 2011 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 is 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.
In addition, plans with higher participant contribution rates or automatic
enrollment tended to have lower all-in fees. 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. Plans with a higher number of investment options
also tended to have higher all-in fees. The study also examined types of
service providers and variables relating to plans relationships with their
service providersbut found little impact on fees.
15
2
<0.50
0.50 to <1.00
1.00 to <1.50
1.50
137
IRA Assets
Billions of dollars; year-end, selected years
Other assets 1
Life insurance companies2
Bank and thrift deposits 3
Mutual funds
6,521 e
4,748
3,425
2,629
912
204
250
1,288
463
261 82 1,263
482
1995
2000
2,532
1,121
937
269
263
1,063
311
278
2002
1,714
2005
1,758
335
340
2,315
2007
5,029
5,001
1,995
1,968 e
4,488
3,681
1,765
1,370
312
391
1,608
2008
5,561 e
e
2,643 e
2,206 e
376
508
345
461
354
482
1,976
2,229
2,196
2,470
2009
2010
2011
2012
317
431
412
507
2,959
2013
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, and Internal Revenue
Service Statistics of Income Division. See The U.S. Retirement Market, Fourth Quarter 2013.
1
138
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 ($2.6trillion at yearend 2013). The mutual fund industrys share of the IRA market was 45percent
at year-end 2013, compared with 44percent at year-end 2012.
IRA Investors
Nearly four out of 10 U.S. households, or 46 million, owned at least one type
of IRA as of mid-2013 (Figure7.15). Traditional IRAsthose introduced under
ERISAwere the most common type, owned by 36 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. Nine million U.S. households owned
employer-sponsored IRAs (SEP IRAs, SAR-SEP IRAs, or SIMPLE IRAs).
FIGURE7.15
Year created
Traditional IRA
1974
(Employee Retirement
Income Security Act)
Number of
U.S. households
with type of IRA
Percentage of
U.S. households
with type of IRA
36.0 million
29.4%
9.2million
7.5%
19.1 million
15.6%
46.1 million
37.6%
1978
(Revenue Act)
SEP IRA
SAR-SEP IRA
1986
(Tax Reform Act)
SIMPLE IRA
1996
(Small Business Job
Protection Act)
Roth IRA
1997
(Taxpayer Relief Act)
Any IRA
Note: Households may own more than one type of IRA. SEP IRAs, SAR-SEP IRAs, and SIMPLE IRAs are employer-sponsored 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, 2013.
139
LEARN MORE
Individual
Retirement
Account
Resource Center.
Available at
www.ici.org/
iraresource.
140
FIGURE7.16
9.7
Note: Rollovers made prior to 2007, as well as rollovers made prior to a change in financial services providers, cannot be
identified in the database.
Source: The IRA Investor Database. See ICI Research Report, The IRA Investor Profile: Traditional IRA Investors Activity,
20072012.
FIGURE7.17
3%
Before 1990
Traditional IRAowning
households that have made
rollovers at some time
49
Traditional IRAowning
households reporting
no rollovers
51
34%
2010 or later
5%
Between 1990 and 1994
10%
Between 1995 and 1999
19%
Between 2000 and 2004
29%
Between 2005 and 2009
Source: ICI Research Perspective, The Role of IRAs in U.S. Households Saving for Retirement, 2013
141
63
53
34
28
27
Individual equities
40
Annuities (total)
33
Fixed annuities
22
Variable annuities
22
24
13
11
ETFs
10
Other
142
13.8%
Money market funds
6.9%
Bonds and bond funds 5
50.4%
Equities and
equity funds 2
7.9%
Nontarget date
hybrid funds 4
17.0%
Target date funds 3
Traditional IRA investors in their sixties
2.5%
Other investments 1
13.0%
Money market funds
22.7%
Bonds and bond funds 5
45.6%
Equities and
equity funds 2
11.3%
4.9%
Nontarget date
Target date funds 3
hybrid funds 4
Other investments include certificates of deposit and unidentifiable assets.
funds include equity mutual funds, equity closed-end funds, and equity ETFs.
3 A target date (also known as lifecycle) 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 Hybrid funds invest in a mix of equities and fixed-income securities.
5 Bond funds include bond mutual funds, bond closed-end funds, and bond ETFs.
Note:Percentages are dollar-weighted averages.
Source: The IRA Investor Database. See ICI Research Report, The IRA Investor Profile: Traditional IRA Investors Activity,
20072012.
1
2 Equity
143
and 5percent of their traditional IRA assets, respectively, in these two asset
categories. By contrast, traditional IRA investors in their sixties had nearly
half of their assets in money market funds (13percent), bonds and bond funds
(23percent), and nontarget date hybrid funds (11percent). Investors in their
thirties held about 29percent of their assets in these three asset categories.
Percent
20%
$20,000 or more
Retired, did not
take a withdrawal 1
Retired, took
a withdrawal 1, 2
Not retired, took
a withdrawal 2
Not retired, did not
take a withdrawal
24%
Less than $2,500
23
16
5
56
21%
took withdrawals
in tax year 2012
9%
$15,000 to $19,999
9%
$10,000 to $14,999
16%
$2,500 to $4,999
22%
$5,000 to $9,999
Mean: $17,300
Median: $6,500
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 Households that made withdrawals exclude those that closed and no longer own traditional IRAs.
Source: ICI Research Perspective, The Role of IRAs in U.S. Households Saving for Retirement, 2013
1
144
LEARN MORE
The IRA
Investor Profile:
Traditional
IRA Investors
Activity, 2007
2012. Available
at www.ici.org/
pubs/research.
Traditional IRA Withdrawals Among Retirees Often Are Used to Pay for Living Expenses
Percentage of traditional IRAowning households by retirement status, 1 May 2013
Retired 1, 2
Not retired 3
38
19
12
12
17
16
19
31
24
14
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 16percent of traditional IRAowning households that were retired and took withdrawals
reported in Figure7.20.
3 The base of respondents includes the 5percent of traditional IRAowning households that were not retired and took
withdrawals reported in Figure7.20.
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, 2013.
1
145
LEARN MORE
The Evolving
Role of IRAs in
U.S. Retirement
Planning,
ICI Research
Perspective.
Available at
www.ici.org/pdf/
per15-03.pdf.
146
11,715
4,407
1,218
2,729
52%
3,360
Households long-term
mutual funds
1,792
1,388
24
230 21%
149
Households money
market funds
Mutual funds held as investments in 529 plans and Coverdell ESAs are counted in this category.
IRAs 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.
Note: Components do not add to the total because of rounding.
1
147
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 year-end
2013, investors held slightly more mutual fund assets in DC plans ($3.5trillion,
or 60percent of total DC plan assets) than in IRAs ($3.0trillion, or 45percent
of total IRA assets) (Figure7.23). Among DC plans, 401(k) plans held the
most assets in mutual funds, with $2.7trillion, followed by 403(b) plans
($442billion), other DC plans ($308billion), and 457 plans ($101billion).
FIGURE7.23
Equity
Domestic
World
Hybrid 1
Bond
Money
market
Total
$1,244
$393
$627
$465
$230
$2,959
1,641
483
809
427
149
3,511
401(k) plans
1,197
387
670
307
98
2,659
403(b) plans
271
38
76
36
21
442
54
15
16
15
101
119
43
47
70
29
308
2,885
876
1,437
893
379
6,470
IRAs 2
DC plans
457 plans
Other DC
Total
plans3
Hybrid 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 DC plans include Keoghs and other DC plans without 401(k) features.
Note: Components may not add to the total because of rounding.
1
148
LEARN MORE
For ICI resources
on 401(k)
plans, visit
www.ici.org/
401k.
149
LEARN MORE
For ICI resources
on target date
funds, visit
www.ici.org/trdf.
150
FIGURE7.24
Other investors
IRAs1
DC plans2
64
481
46
256
183
71
5
15
51
44 3
15 1 26 2
9
11
2 19 5 31
2002
2003
2004
2005
115
7
25
83
2006
13 160
9
39
32
131
119
2007
2008
48
189
2009
19
340
30
65
376
34
124
93
73
430
244
2010
269
2011
342
2012
2013
359
292
238
189
131
85
65
56
47
20
35 13 26
15 46
10
24
14 7 20
2002
2003
2004
2005
126
98
31
264
262
151
151
38
44
44
51
176
132
98
42
215
231
30
169
62
60
70
48
60
69
67
73
81
2006
2007
2008
2009
2010
2011
2012
2013
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.
1
2 DC
151
205.1
168.9
8.5
2001
18.5
2002
35.1
2003
52.2
2004
2010
2011
116.9
112.5
90.1
139.1
144.9
89.4
68.7
2005
2006
2007
2008
2009
2012
2013
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
152
LEARN MORE
529 Plan
Program
Statistics.
Available at
www.ici.org/
research/
stats/529s.
153
FIGURE7.26
24
35 to 44
32
45 to 54
23
55 to 64
12
65 or older
Education level
High school graduate or less
17
32
Completed college
21
30
Household income 3
Less than $25,000
$25,000 to $34,999
$35,000 to $49,999
10
$50,000 to $74,999
17
$75,000 to $99,999
13
$100,000 or more
47
33
One
22
Two
27
Three or more
18
Households saving for college are households that own education savings plans (Coverdell ESAs or 529 plans) or that
responded that 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 2012.
4 The number of children reported is children younger than 18 living in the home.
1
154
PART TWO
Data Tables
156
Data Tables
Section 1
Mutual Fund Totals
Table 1: T otal Net Assets, Number of Funds, Number of Share Classes, and Number of Shareholder
Accounts of the Mutual Fund Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
2: Total Sales, New Sales, Exchange Sales, Redemptions, and Exchange
Redemptions of the Mutual Fund Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
3: Total Net Assets of the Mutual Fund Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
4: Total Net Assets of the Mutual Fund Industry by Composite Investment Objective . . . . . . . . . . . . . . . . . . . . . . . 163
5: Number of Funds of the Mutual Fund Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
6: Number of Funds of the Mutual Fund Industry by Composite Investment Objective . . . . . . . . . . . . . . . . . . . . . . 165
7: Number of Share Classes of the Mutual Fund Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
8: Number of Share Classes of the Mutual Fund Industry by Composite Investment Objective . . . . . . . . . . . . . . . 167
9: Number of Shareholder Accounts of the Mutual Fund Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
10: Number of Shareholder Accounts of the Mutual Fund Industry by Composite Investment Objective . . . . . . 169
Section 2
Closed-End Funds, Exchange-Traded Funds, and Unit Investment Trusts
Table 11: Closed-End Funds: Total Assets and Number of Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
12: Closed-End Funds: Gross Issuance, Gross Redemptions, and Net Issuance by Type of Fund . . . . . . . . . . . . . 171
13: Exchange-Traded Funds: Total Net Assets by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
14: Exchange-Traded Funds: Number of Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
15: Exchange-Traded Funds: Net Issuance by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
16: Unit Investment Trusts: Total Net Assets, Number of Trusts, and New Deposits by Type of Trust . . . . . . . . . 175
DATA TABLES
157
Data Section 1
Section 3
Long-Term Mutual Funds
Table 17: Liquid Assets and Liquidity Ratio of Long-Term Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176
18: Liquidity Ratio of Long-Term Mutual Funds by Composite Investment Objective . . . . . . . . . . . . . . . . . . . . . . . 177
19: Net New Cash Flow of Long-Term Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
20: Net New Cash Flow and Components of Net New Cash Flow of Equity Mutual Funds . . . . . . . . . . . . . . . . . . . . 179
21: Net New Cash Flow and Components of Net New Cash Flow of Hybrid Mutual Funds . . . . . . . . . . . . . . . . . . . 180
22: Net New Cash Flow and Components of Net New Cash Flow of Bond Mutual Funds . . . . . . . . . . . . . . . . . . . . . 181
23: Net New Cash Flow of Long-Term Mutual Funds by Composite Investment Objective . . . . . . . . . . . . . . . . . . . 182
24: New Sales of Long-Term Mutual Funds by Composite Investment Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
25: Exchange Sales of Long-Term Mutual Funds by Composite Investment Objective . . . . . . . . . . . . . . . . . . . . . . . 184
26: Redemptions of Long-Term Mutual Funds by Composite Investment Objective . . . . . . . . . . . . . . . . . . . . . . . . . 185
27: Exchange Redemptions of Long-Term Mutual Funds by Composite Investment Objective . . . . . . . . . . . . . . . . 186
28: Annual Redemption Rates of Long-Term Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
29: Portfolio Holdings of Long-Term Mutual Funds and Share of Total Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . 188
30: Portfolio Holdings of Long-Term Mutual Funds as a Share of Total Net Assets by Type of Fund . . . . . . . . . . 189
31: Paid and Reinvested Dividends of Long-Term Mutual Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 190
32: Paid and Reinvested Capital Gains of Long-Term Mutual Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . 191
33: T otal Portfolio, Common Stock, and Other Securities: Purchases, Sales, and Net Purchases
by Long-Term Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
34: T otal Portfolio, Common Stock, and Other Securities: Purchases, Sales, and Net Purchases
by Equity Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
35: T otal Portfolio, Common Stock, and Other Securities: Purchases, Sales, and Net Purchases
by Hybrid Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
36:
Total Portfolio, Common Stock, and Other Securities: Purchases, Sales, and Net Purchases
by Bond Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Section 4
Money Market Funds
Table 37: Total Net Assets and Number of Shareholder Accounts of Money Market Funds by Type of Fund . . . . . . . . . 196
38: Number of Funds and Number of Share Classes of Money Market Funds by Type of Fund . . . . . . . . . . . . . . . 197
39: Total Net Assets of Money Market Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
40: Net New Cash Flow of Money Market Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .199
41: Net New Cash Flow and Components of Net New Cash Flow of Money Market Funds . . . . . . . . . . . . . . . . . . . 200
42: Paid and Reinvested Dividends of Money Market Funds by Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
43: Asset Composition of Taxable Government Money Market Funds as a Percentage of Total Net Assets . . . . . 202
44: Asset Composition of Taxable Prime Money Market Funds as a Percentage of Total Net Assets . . . . . . . . . . 203
158
Table 45: Funds of Funds: Total Net Assets, Net New Cash Flow, Number of Funds, and Number of Share Classes . . . 204
46: Funds of Funds: Components of Net New Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
47: Index Mutual Funds: Total Net Assets and Net New Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
48: Index Mutual Funds: Number of Funds and Number of Share Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
49: Index Mutual Funds: New Sales and Exchange Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
50: Index Mutual Funds: Redemptions and Exchange Redemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
51: R
etirement Mutual Funds: Total Net Assets, Net New Cash Flow, Number of Funds,
and Number of Share Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
52: Retirement Mutual Funds: Components of Net New Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
53: Target Date and Lifestyle Mutual Funds: Total Net Assets, Net New Cash Flow, Number of Funds, and
Number of Share Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
54: Target Date and Lifestyle Mutual Funds: Components of Net New Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . 213
55: Variable Annuity Mutual Funds: Total Net Assets, Net New Cash Flow, and Number of Funds . . . . . . . . . . . . 214
56: Variable Annuity Mutual Funds: Components of Net New Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Section 6
Institutional Investors in the Mutual Fund Industry
Table 57: Total Net Assets of Mutual Funds Held in Individual and Institutional Accounts . . . . . . . . . . . . . . . . . . . . . . . . . 216
58: Total Net Assets of Institutional Investors in Mutual Funds by Type of Institution and Type of Fund . . . . . . 217
59: T otal Net Assets of Institutional Investors in Taxable Money Market Funds by Type of Institution
and Type of Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Section 7
Worldwide Mutual Fund Totals
Table 60: Worldwide Total Net Assets of Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
61: Worldwide Number of Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
62: Worldwide Net Sales of Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
DATA TABLES
159
Data Section 1
Section 5
Additional Categories of Mutual Funds
Data Section 1
TABLE 1
Total Net Assets, Number of Funds, Number of Share Classes, and Number of
Shareholder Accounts 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
$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
7,402.42
8,095.45
8,891.11
10,397.88
11,999.73
9,602.57
11,112.67
11,831.33
11,626.49
13,043.67
15,017.68
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
8,125
8,042
7,974
8,117
8,023
8,019
7,659
7,548
7,580
7,582
7,707
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
19,317
20,035
20,548
21,249
21,610
22,232
21,661
21,907
22,249
22,605
23,353
296
498
939
2,085
4,898
6,709
10,690
9,876
9,060
8,693
8,658
9,790
12,088
17,499
21,448
24,605
27,636
34,098
45,374
53,717
54,056
57,560
61,948
68,332
79,931
94,015
114,383
131,219
149,933
170,299
194,029
226,212
244,705
248,701
251,123
260,698
269,468
275,479
288,594
292,553
264,597
269,449
291,299
272,628
257,074
264,848
160
TABLE 2
Data Section 1
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
Total sales 1
$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
12,393.55
12,191.07
13,939.22
17,409.22
23,470.46
26,346.41
20,679.72
18,207.23
17,833.01
17,017.34
18,145.11
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
12,315.37
12,100.93
13,812.40
17,228.65
23,236.23
26,132.64
20,528.33
18,050.47
17,656.96
16,826.19
17,955.72
Exchange sales 2
$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
408.99
420.83
487.71
606.46
733.83
529.96
420.04
447.70
421.82
517.21
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
12,038.86
13,546.63
16,751.90
22,352.07
25,725.48
20,680.17
18,319.12
17,736.51
16,618.45
17,775.12
Exchange
redemptions 3
$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
528.12
434.77
466.26
433.97
530.78
1 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.
161
Data Section 1
TABLE 3
Total
Equity
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
Money market
funds
$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
$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
7,402.42
8,095.45
8,891.11
10,397.88
11,999.73
9,602.57
11,112.67
11,831.33
11,626.49
13,043.67
15,017.68
$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
3,370.15
2,948.50
2,273.92
3,119.81
3,627.86
3,930.92
4,473.12
4,695.32
2,739.12
3,564.94
4,055.85
3,858.45
4,328.50
5,729.70
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
1,355.34
1,611.59
2,034.17
$11.15
17.61
25.76
29.25
26.35
35.64
36.12
52.23
78.04
144.50
164.40
210.33
252.58
317.11
365.00
378.81
360.92
358.03
335.28
447.55
552.01
621.34
731.36
821.28
562.05
717.78
842.04
882.98
1,030.82
1,270.20
$25.45
83.20
167.63
171.40
168.96
166.25
171.00
239.58
307.95
364.88
299.85
345.58
392.34
452.29
532.00
541.01
545.16
642.38
809.71
923.69
969.43
1,017.34
1,129.41
1,304.66
1,232.78
1,747.59
2,115.00
2,341.39
2,800.38
2,767.09
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
473.54
496.90
578.85
498.19
$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
$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
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.
162
$1,433.95
1,105.24
765.54
1,041.14
1,148.56
1,232.82
1,319.36
1,419.59
808.68
1,085.71
1,248.18
1,178.82
1,319.91
1,725.21
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$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
1,355.34
1,611.59
2,034.17
World
$1,936.21
1,843.26
1,508.38
2,078.67
2,479.30
2,698.11
3,153.76
3,275.73
1,930.43
2,479.23
2,807.67
2,679.63
3,008.59
4,004.48
Total return
$360.92
358.03
335.28
447.55
552.01
621.34
731.36
821.28
562.05
717.78
842.04
882.98
1,030.82
1,270.20
Hybrid funds
$245.69
311.29
406.26
473.95
518.25
570.10
640.32
760.36
736.42
1,050.05
1,241.30
1,364.79
1,571.62
1,450.83
$109.94
109.20
108.11
158.99
167.44
158.48
174.40
174.75
117.59
197.09
241.88
267.25
335.70
411.52
Investment
grade
High yield
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
Capital
appreciation
Equity funds
$29.61
28.05
29.72
38.19
47.41
56.62
78.13
107.43
103.80
146.42
214.10
256.01
320.56
338.99
World
Total Net Assets of the Mutual Fund Industry by Composite Investment Objective
TABLE 4
$124.87
154.14
218.98
197.99
176.61
167.34
153.15
158.19
188.04
210.31
225.40
241.94
297.98
239.05
$35.04
39.70
46.64
54.57
59.73
64.81
83.41
103.93
86.93
143.72
192.31
211.40
274.52
326.70
$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
Bond funds
$146.49
156.44
177.41
187.05
184.15
191.50
210.67
218.21
202.70
299.24
317.38
338.01
401.32
353.37
National
muni
$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
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
Taxexempt
Data Section 1
163
Data Section 1
TABLE 5
Total
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
361
392
410
421
431
426
452
477
505
526
564
665
857
1,026
Equity
323
350
364
366
343
314
302
296
294
289
288
306
340
396
38
42
46
55
73
76
102
131
150
159
170
180
199
257
Money market
funds
15
36
48
50
61
78
106
179
318
373
Long-term funds
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
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
8,125
8,042
7,974
8,117
8,023
8,019
7,659
7,548
7,580
7,582
7,707
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
3,316
3,611
3,715
3,659
3,651
3,659
3,748
3,676
3,653
3,419
3,324
3,265
3,224
3,195
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
1,138
1,171
1,193
1,265
1,277
1,345
Hybrid
89
103
121
164
179
189
193
212
235
282
361
412
466
501
526
532
508
473
458
473
470
479
495
481
495
476
492
515
560
606
Taxable
159
229
302
415
522
561
583
657
772
950
1,103
1,166
1,243
1,286
1,350
1,374
1,366
1,307
1,294
1,312
1,323
1,314
1,319
1,325
1,310
1,289
1,304
1,340
1,384
1,446
Municipal
Taxable
Tax-exempt
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
600
583
563
557
560
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
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
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.
164
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1,055
1,085
1,018
929
887
912
995
1,060
1,138
1,171
1,193
1,265
1,277
1,345
World
1,761
1,888
1,986
1,979
2,001
2,028
2,079
2,100
2,098
1,977
1,931
1,905
1,878
1,866
Total return
508
473
458
473
470
479
495
481
495
476
492
515
560
606
Hybrid funds
575
557
575
601
614
609
594
606
596
572
583
579
581
594
219
224
212
212
216
226
219
221
214
206
208
207
214
225
Investment
grade
High yield
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
1,555
1,723
1,729
1,680
1,650
1,631
1,669
1,576
1,555
1,442
1,393
1,360
1,346
1,329
Year
Equity funds
Capital
appreciation
Year-end
154
139
125
120
121
122
138
149
157
164
175
204
237
270
World
323
296
284
281
275
262
256
243
236
237
228
222
215
214
95
91
98
98
97
95
112
106
107
110
110
128
137
143
589
550
515
523
513
498
478
448
415
377
361
346
336
331
Bond funds
TABLE 6
282
264
255
256
254
242
235
228
225
223
222
217
221
229
National
muni
704
690
677
660
639
593
573
545
534
476
442
431
400
382
Taxable
335
325
311
313
305
277
274
260
249
228
210
201
180
173
Taxexempt
Data Section 1
165
Data Section 1
TABLE 7
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
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
19,317
20,035
20,548
21,249
21,610
22,232
21,661
21,907
22,249
22,605
23,353
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
6,729
7,742
8,431
8,548
9,004
9,261
9,643
9,705
9,880
9,346
9,215
9,207
9,185
9,247
Bond
World
Hybrid
Taxable
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
3,384
3,549
3,710
3,942
4,033
4,254
89
103
121
164
179
189
200
224
258
349
517
637
753
877
968
1,031
1,007
994
1,030
1,110
1,198
1,340
1,342
1,331
1,400
1,387
1,470
1,544
1,678
1,872
159
229
302
415
522
561
597
686
876
1,205
1,603
1,841
2,046
2,289
2,528
2,717
2,817
2,870
3,062
3,219
3,373
3,423
3,538
3,636
3,749
3,775
3,959
4,109
4,390
4,663
Municipal
Taxable
Tax-exempt
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
1,758
1,772
1,717
1,696
1,746
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
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
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
166
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2,299
2,511
2,515
2,369
2,357
2,501
2,775
3,030
3,384
3,549
3,710
3,942
4,033
4,254
World
3,497
3,972
4,457
4,598
4,936
5,169
5,398
5,548
5,702
5,416
5,371
5,404
5,392
5,456
Total return
1,007
994
1,030
1,110
1,198
1,340
1,342
1,331
1,400
1,387
1,470
1,544
1,678
1,872
Hybrid funds
1,141
1,190
1,341
1,462
1,551
1,574
1,604
1,658
1,663
1,632
1,702
1,716
1,792
1,841
490
524
528
538
567
606
617
655
673
654
683
687
727
777
Investment
grade
High yield
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
3,232
3,770
3,974
3,950
4,068
4,092
4,245
4,157
4,178
3,930
3,844
3,803
3,793
3,791
Year
Equity funds
Capital
appreciation
Year-end
306
287
286
285
296
309
361
404
472
518
583
698
827
972
World
679
661
676
703
716
687
666
630
624
634
644
612
618
625
201
208
231
231
243
247
290
289
317
337
347
396
426
448
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
Bond funds
Number of Share Classes of the Mutual Fund Industry by Composite Investment Objective
TABLE 8
638
632
653
707
717
686
680
673
678
689
707
688
694
736
National
muni
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
Taxable
524
543
543
569
576
567
559
568
547
516
500
475
449
430
Taxexempt
Data Section 1
167
Data Section 1
TABLE 9
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
27,636
34,098
45,374
53,717
54,056
57,560
61,948
68,332
79,931
94,015
114,383
131,219
149,933
170,299
194,029
226,212
244,705
248,701
251,123
260,698
269,468
275,479
288,594
292,553
264,597
269,449
291,299
272,628
257,074
264,848
Domestic
8,910
10,255
13,878
18,201
17,624
18,286
19,080
22,170
28,527
35,433
45,786
56,145
69,650
83,767
101,042
125,558
138,103
140,614
139,670
147,117
150,410
147,971
149,824
145,025
125,048
123,897
130,903
122,997
114,281
121,623
Bond
World
713
806
1,631
2,171
2,034
2,062
3,077
3,478
4,203
7,122
12,162
13,195
15,651
17,912
18,515
21,833
24,835
23,969
23,602
25,403
30,785
36,961
46,259
51,287
45,626
48,716
52,193
48,474
45,705
47,998
Hybrid
983
1,323
2,101
2,732
2,575
2,727
3,203
3,620
4,532
6,741
10,251
10,926
12,026
12,856
14,138
14,252
13,636
14,875
16,305
18,869
21,841
24,214
25,830
27,166
25,458
26,630
28,746
27,417
26,763
27,999
Taxable
2,241
5,261
9,038
10,198
10,316
9,887
9,977
11,254
13,819
14,917
14,092
14,786
14,747
14,856
15,979
15,971
15,299
17,438
21,470
23,693
24,565
25,304
25,445
25,903
26,609
32,530
44,514
40,857
38,389
36,932
Municipal
943
1,520
2,413
2,740
2,938
3,285
3,641
4,255
5,203
6,218
6,714
6,030
5,659
5,284
5,507
4,982
4,696
4,567
4,696
4,401
4,231
4,190
4,168
4,043
3,745
4,210
4,640
4,212
4,073
3,694
Taxable
13,556
14,435
15,654
16,833
17,630
20,173
21,577
21,863
21,771
21,587
23,342
27,866
29,929
32,986
36,461
41,187
45,489
44,425
42,725
38,411
34,793
34,031
34,004
35,661
34,497
30,300
27,131
25,909
25,227
24,119
Tax-exempt
288
499
660
842
939
1,141
1,391
1,693
1,876
1,999
2,037
2,271
2,271
2,638
2,386
2,428
2,649
2,811
2,655
2,803
2,843
2,806
3,063
3,469
3,614
3,166
3,171
2,761
2,635
2,483
168
66,001
63,008
59,287
60,281
58,988
57,004
54,415
52,239
44,362
44,719
46,027
43,602
39,679
40,761
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
24,835
23,969
23,602
25,403
30,785
36,961
46,259
51,287
45,626
48,716
52,193
48,474
45,705
47,998
World
72,102
77,606
80,384
86,837
91,422
90,968
95,410
92,786
80,686
79,178
84,875
79,395
74,603
80,861
Total return
13,636
14,875
16,305
18,869
21,841
24,214
25,830
27,166
25,458
26,630
28,746
27,417
26,763
27,999
Hybrid
funds
5,103
6,739
9,062
10,316
11,218
11,952
12,156
12,255
12,824
15,910
18,287
18,235
17,937
16,638
4,154
4,156
4,170
5,056
5,201
5,190
5,226
5,257
4,406
5,285
7,994
7,392
6,926
7,333
Investment
grade
High yield
Capital
appreciation
Equity funds
Year
Thousands, year-end
1,089
1,052
1,100
1,283
1,408
1,724
2,098
2,575
2,878
3,597
5,067
5,510
4,758
4,713
World
4,025
4,513
6,065
5,776
5,311
4,820
3,925
3,577
4,165
4,386
4,976
5,011
5,089
4,008
928
978
1,072
1,263
1,426
1,618
2,041
2,240
2,336
3,352
8,190
4,709
3,679
4,240
2,112
2,033
2,050
1,831
1,737
1,707
1,641
1,574
1,374
1,424
1,490
1,245
1,181
1,032
Bond funds
Number of Shareholder Accounts* of the Mutual Fund Industry by Composite Investment Objective
TABLE 10
2,584
2,534
2,646
2,571
2,494
2,483
2,527
2,469
2,371
2,786
3,150
2,968
2,892
2,662
National
muni
45,489
44,425
42,725
38,411
34,793
34,031
34,004
35,661
34,497
30,300
27,131
25,909
25,227
24,119
Taxable
2,649
2,811
2,655
2,803
2,843
2,806
3,063
3,469
3,614
3,166
3,171
2,761
2,635
2,483
Tax-exempt
Data Section 1
169
170
$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
223,394
238,380
242,977
264,080
279,298
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$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
53,440
60,961
62,914
68,961
82,100
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
32,162
32,209
Global/
International
$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
49,075
48,099
53,728
58,591
Domestic
taxable
$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
90,483
82,753
$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
23,646
Domestic
Global/
municipal International
Bond
Note: Components may not add to the total because of rounding. Totals are inclusive of preferred share classes.
Total
Year
Equity
Total assets
Millions of dollars, year-end
TABLE 11
248
280
372
494
510
499
496
486
491
511
481
491
544
583
619
635
646
663
642
627
624
632
602
599
Total
41
40
43
48
50
49
50
45
44
49
53
51
63
75
96
121
129
137
128
117
117
125
125
130
Domestic
51
52
61
70
86
91
91
89
83
74
69
64
59
55
61
71
74
92
93
91
87
87
86
85
Global/
International
Equity
85
86
99
120
123
119
118
115
123
117
109
109
105
129
137
132
134
131
128
127
130
132
131
132
Domestic
taxable
Number of funds
Year-end
Data Section 2
53
87
149
227
219
207
205
205
211
241
220
240
292
297
295
280
276
269
260
260
258
256
223
210
Domestic
municipal
Bond
18
15
20
29
32
33
32
32
30
30
30
27
25
27
30
31
33
34
33
32
32
32
37
42
Global/
International
TABLE 12
Closed-End Funds: Gross Issuance, Gross Redemptions, and Net Issuance by Type of Fund
Millions of dollars, annual
Equity funds
Year
Total
Domestic
Global/
International
Bond funds
Domestic
taxable
Domestic
municipal
Global/
International
Gross issuance 1
$24,895
40,810
27,991
21,388
12,745
31,086
275
3,615
14,017
14,990
14,127
13,261
$9,191
11,187
15,424
12,559
7,992
5,973
8
549
3,719
3,850
3,815
4,044
$3
50
5,714
6,628
2,505
19,764
145
485
114
1,469
516
106
$2,309
25,587
5,820
2,046
1,718
2,221
121
876
2,374
1,000
3,963
4,490
$13,392
2,954
5
31
196
433
0
1,389
7,454
8,669
3,753
1,639
$0
1,032
1,028
124
334
2,695
0
317
358
2
2,081
2,983
2,717
22,573
6,375
8,497
8,972
3,635
3,154
1,024
7,060
2,416
1,724
644
974
146
105
1,832
639
55
209
420
649
254
6,891
1,664
384
276
713
556
1,313
6,089
1,627
6,335
7,843
1,527
1,799
20
701
30
0
0
0
5
28,369
-22,298
-2,759
5,520
6,018
10,492
10,107
4,949
-7,052
-1,866
1,995
3,206
2,840
3,898
19,659
-1,687
-154
59
1,260
96
-543
1,966
-6,770
-788
1,990
724
3,249
3,933
-880
-6,089
-238
1,119
825
2,226
-159
2,675
-700
287
357
2
2,081
2,978
Data Section 2
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Gross redemptions 2
2007
2008
2009
2010
2011
2012
2013
Net issuance 3
2007
2008
2009
2010
2011
2012
2013
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 issurance. 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.
1
171
172
$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
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$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
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
Sector 1
Domestic equity
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
Global/
International
$1,335
4,798
14,699
28,906
35,728
74,528
101,081
109,176
120,019
64,044
Commodities 2
Investment objective
$119
132
169
322
377
656
1,469
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
Bond
Legal status
$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
Index
$245
1,014
2,736
5,049
10,257
14,055
Actively
managed
$1,335
4,798
14,699
28,906
35,728
74,528
101,055
108,868
119,881
63,869
Non1940 Act
ETFs 3
$97
824
1,294
1,580
2,227
2,659
Funds of
funds 4
Memo
This category includes funds both registered and not registered under the Investment Company Act of 1940.
This 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 13
Data Section 2
1
1
2
19
19
29
30
80
102
113
119
152
204
359
629
728
797
923
1,134
1,194
1,294
Total
1
1
2
2
2
3
4
29
34
34
39
60
81
133
197
204
222
243
287
274
292
Broadbased
9
9
26
34
32
33
42
65
119
191
186
179
193
229
222
235
Sector 1
17
17
17
17
25
34
39
41
43
49
85
159
225
244
298
368
404
438
Global/
International
1
3
16
28
45
49
55
75
79
76
Commodities 2
Investment objective
5
6
5
6
7
13
15
Hybrid
8
6
6
6
6
49
62
98
128
168
202
238
Bond
Legal status
1
1
2
19
19
29
30
80
102
113
119
151
201
343
601
670
727
844
1,028
1,070
1,158
Index
13
21
25
33
44
61
Actively
managed
1
3
16
28
45
49
54
73
80
75
Non1940 Act
ETFs 3
15
23
27
32
45
38
Funds of
funds 4
Memo
This category includes funds both registered and not registered under the Investment Company Act of 1940.
This 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
Year
Domestic equity
Equity
Yearend
TABLE 14
Data Section 2
173
174
$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
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$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
Broadbased
$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
Sector 1
$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
Global/
International
$1,353
2,859
8,475
9,062
10,567
28,410
8,155
2,940
8,892
-29,870
Commodities 2
Investment objective
$122
58
15
144
72
246
849
Hybrid
$3,729
721
3,778
6,756
5,729
13,318
22,952
45,958
29,652
46,045
52,318
12,195
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
Index
$281
724
1,711
2,567
5,025
4,468
Actively
managed
This category includes funds both registered and not registered under the Investment Company Act of 1940.
This 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
Domestic equity
Equity
$1,353
2,859
8,475
9,062
10,567
28,410
8,129
2,639
9,041
-29,906
Non1940 Act
ETFs 3
$107
237
433
389
510
1,180
Funds of
funds 4
Memo
TABLE 15
Data Section 2
$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
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$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
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
Taxable
debt
Total
trusts
Year
$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
Tax-free
debt
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
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
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
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
Tax-free
debt
Unit Investment Trusts: Total Net Assets, Number of Trusts, and New Deposits by Type of Trust
TABLE 16
$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
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
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
Taxable
debt
New deposits
Data Section 2
175
$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
Tax-free
debt
TABLE 17
Liquidity ratio*
Data Section 3
Millions of dollars
Percent
Year
Total
Equity
funds
Hybrid
funds
Bond
funds
Total
Equity
funds
Hybrid
funds
Bond
funds
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
$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
259,580
306,756
302,922
346,491
381,245
296,222
365,358
330,811
462,471
517,693
653,263
$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
225,032
170,377
120,515
154,857
184,045
190,817
218,567
266,101
185,452
169,642
192,717
182,645
200,618
272,925
$2,514
2,730
2,986
5,747
4,225
3,318
6,595
16,774
20,093
19,494
18,067
24,761
25,569
20,656
26,798
26,911
25,423
30,633
36,179
42,998
57,317
56,570
52,502
52,566
61,007
70,403
100,326
142,106
$13,485
18,881
24,252
13,253
16,872
26,410
24,972
25,123
29,453
24,518
26,254
28,500
22,307
23,750
25,334
25,187
63,001
74,089
86,532
69,108
70,606
58,573
58,269
143,150
77,087
209,423
216,750
238,232
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
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
4.1
5.1
3.5
3.4
3.5
3.4
3.5
9.8%
9.3
11.3
16.1
11.7
6.4
8.5
11.6
12.2
9.3
7.2
7.8
7.0
5.5
7.4
7.5
7.6
6.8
6.6
6.9
7.8
6.9
9.3
7.3
7.2
8.0
9.7
11.2
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
7.4
6.4
7.3
* 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.
176
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
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
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
World
Equity funds
4.9%
4.8
4.1
4.1
4.2
3.7
3.7
3.5
4.2
2.8
2.9
2.9
2.9
3.0
Total return
7.4%
7.5
7.6
6.8
6.6
6.9
7.8
6.9
9.3
7.3
7.2
8.0
9.7
11.2
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
Investment
grade
9.1%
7.7
7.9
6.1
6.1
5.1
4.2
4.0
10.7
5.4
6.1
7.2
5.6
4.2
High yield
-0.9%
-4.3
-3.3
4.0
9.3
7.4
14.0
18.3
13.3
10.2
11.4
17.0
15.2
14.6
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
Government
Bond funds
-3.4%
0.6
-0.7
6.3
5.0
5.2
2.7
3.0
3.5
10.6
10.7
8.4
9.1
13.5
Multisector
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
Percent, year-end
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
State muni
TABLE 18
Data Section 3
177
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
National muni
TABLE 19
Data Section 3
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
$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
215,843
209,851
192,086
227,103
224,254
-224,997
389,155
241,271
25,846
195,922
151,835
Equity funds
$4,336
6,643
20,386
19,231
-14,948
6,774
12,915
39,888
78,983
127,261
114,525
124,392
216,937
227,107
156,875
187,565
315,742
33,633
-29,048
144,416
171,831
123,718
147,548
73,035
-229,576
-2,019
-24,477
-129,024
-152,234
159,784
Hybrid funds
Bond funds
$1,801
3,720
6,988
3,748
-3,684
3,183
1,483
7,089
21,833
44,229
23,105
3,899
12,177
16,499
10,311
-13,705
-36,722
7,285
8,043
39,066
53,082
42,841
19,870
40,330
-25,652
19,888
35,256
39,763
46,531
72,514
$13,058
63,127
102,618
6,797
-4,488
-1,226
6,813
59,236
70,881
70,559
-62,470
-6,082
2,760
28,424
74,610
-4,080
-50,146
88,269
141,587
32,360
-15,062
25,527
59,685
110,889
30,232
371,285
230,492
115,107
301,624
-80,463
* 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.
178
TABLE 20
Net New Cash Flow and Components of Net New Cash Flow of Equity Mutual Funds
Millions of dollars, annual
Sales
Year
$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
315,742
33,633
-29,048
144,416
171,831
123,718
147,548
73,035
-229,576
-2,019
-24,477
-129,024
-152,234
159,784
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
1,410,845
1,972,295
1,330,283
1,214,961
1,075,014
1,096,812
1,192,792
1,417,170
1,729,368
1,523,316
1,193,789
1,406,790
1,493,661
1,450,482
1,865,940
New 2
$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
1,320,136
954,075
894,862
838,337
927,240
1,017,357
1,214,512
1,506,710
1,329,579
1,032,222
1,237,031
1,323,494
1,261,039
1,642,808
Exchange 3
$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
236,677
169,571
175,435
202,658
222,658
193,737
161,567
169,759
170,167
189,443
223,133
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
1,223,280
1,656,554
1,296,649
1,244,009
930,598
924,981
1,069,073
1,269,622
1,656,333
1,752,892
1,195,807
1,431,267
1,622,685
1,602,716
1,706,156
Regular 4
$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
1,032,209
892,064
876,215
708,043
759,281
878,530
1,047,686
1,389,421
1,479,174
1,015,656
1,239,392
1,418,321
1,382,517
1,498,247
Exchange 5
$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
165,700
190,543
221,936
266,911
273,718
180,151
191,876
204,364
220,199
207,909
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
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
179
TABLE 21
Net New Cash Flow and Components of Net New Cash Flow of Hybrid 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
$1,801
3,720
6,988
3,748
-3,684
3,183
1,483
7,089
21,832
44,229
23,105
3,899
12,177
16,499
10,311
-13,705
-36,722
7,285
8,043
39,066
53,082
42,841
19,870
40,330
-25,652
19,888
35,256
39,763
46,531
72,514
New +
exchange
$4,118
7,502
13,535
14,948
6,259
11,139
9,721
16,912
32,955
62,391
60,434
43,851
58,089
70,279
84,483
82,993
70,445
83,546
93,685
115,915
143,395
144,193
146,056
206,285
181,166
174,286
205,131
263,322
265,841
336,267
New 2
$3,842
6,976
12,342
12,420
4,601
9,334
8,021
13,789
26,586
50,866
50,436
36,038
48,494
56,856
68,853
68,582
56,973
65,634
75,664
96,799
125,374
126,548
127,505
183,358
154,810
150,119
181,172
233,710
239,194
299,381
Redemptions
Exchange 3
$276
526
1,194
2,529
1,658
1,805
1,700
3,122
6,369
11,525
9,998
7,813
9,595
13,423
15,630
14,411
13,473
17,912
18,021
19,116
18,021
17,645
18,551
22,927
26,356
24,167
23,959
29,611
26,647
36,886
Regular +
exchange
Regular 4
$2,318
3,782
6,548
11,200
9,943
7,956
8,238
9,823
11,122
18,162
37,329
39,952
45,912
53,780
74,171
96,698
107,167
76,260
85,642
76,849
90,312
101,353
126,187
165,955
206,818
154,397
169,876
223,558
219,310
263,753
$2,017
3,161
5,162
7,848
7,521
5,780
5,619
7,030
7,265
11,828
25,761
28,241
31,915
38,926
54,649
71,076
77,219
58,850
67,407
63,329
77,426
86,040
106,023
143,992
165,257
127,156
146,208
190,432
194,716
232,700
Exchange 5
$301
621
1,386
3,353
2,422
2,176
2,619
2,792
3,858
6,334
11,568
11,711
13,997
14,854
19,523
25,622
29,948
17,410
18,234
13,520
12,886
15,312
20,164
21,963
41,562
27,241
23,668
33,126
24,594
31,054
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
180
TABLE 22
Net New Cash Flow and Components of Net New Cash Flow of Bond Mutual Funds
Millions of dollars, annual
Sales
Year
$13,058
63,127
102,618
6,797
-4,488
-1,226
6,813
59,236
70,881
70,559
-62,470
-6,082
2,760
28,424
74,610
-4,080
-50,146
88,269
141,587
32,360
-15,062
25,527
59,685
110,889
30,232
371,285
230,492
115,107
301,624
-80,463
New +
exchange
$25,554
83,359
158,874
123,528
72,174
71,770
80,608
141,622
217,680
260,519
185,015
165,610
202,037
240,377
312,637
298,122
250,831
393,754
514,213
519,816
395,104
402,603
446,258
592,700
709,562
1,006,469
1,087,200
1,098,737
1,239,664
1,292,792
New 2
$20,774
74,485
138,240
93,725
47,378
48,602
57,074
108,059
171,868
207,265
129,959
109,797
136,827
174,682
229,375
216,467
187,100
301,021
401,205
427,686
340,202
350,999
391,015
506,910
580,884
856,640
962,099
971,559
1,114,355
1,144,225
Exchange 3
$4,780
8,874
20,634
29,803
24,796
23,168
23,534
33,563
45,812
53,254
55,057
55,814
65,210
65,695
83,263
81,655
63,730
92,733
113,009
92,130
54,902
51,603
55,243
85,790
128,678
149,830
125,101
127,178
125,310
148,567
Regular +
exchange
$12,497
20,232
56,256
116,731
76,662
72,996
73,795
82,387
146,799
189,960
247,485
171,693
199,277
211,953
238,028
302,202
300,977
305,486
372,626
487,456
410,166
377,075
386,573
481,811
679,330
635,184
856,708
983,630
938,040
1,373,255
Regular 4
$7,344
13,094
35,776
69,627
51,558
48,517
47,959
56,158
96,573
127,200
162,360
114,252
124,984
140,245
158,775
205,968
220,811
225,935
284,533
376,362
341,078
321,284
329,120
410,037
582,435
524,973
742,038
867,959
835,887
1,185,210
Exchange 5
$5,152
7,137
20,480
47,104
25,103
24,480
25,837
26,228
50,226
62,759
85,125
57,441
74,293
71,708
79,253
96,234
80,165
79,551
88,093
111,094
69,088
55,791
57,453
71,774
96,895
110,212
114,670
115,671
102,152
188,045
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
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
181
182
$262,090
-22,779
-52,387
27,126
-11,497
-25,359
-26,842
-43,077
-47,898
-7,171
-26,485
-44,208
-38,420
-3,234
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$58,195
-23,206
-4,451
24,361
71,583
106,918
150,935
141,788
-80,384
25,681
56,732
3,902
6,395
142,062
World
-$4,543
79,619
27,791
92,930
111,744
42,159
23,455
-25,676
-101,294
-20,529
-54,724
-88,718
-120,209
20,956
Total return
-$36,722
7,285
8,043
39,066
53,082
42,841
19,870
40,330
-25,652
19,888
35,256
39,763
46,531
72,514
Hybrid funds
$5,460
49,253
64,670
31,835
22,382
36,732
36,993
76,106
9,453
202,340
111,384
50,892
106,568
-97,054
Investment
grade
-$15,376
880
2,953
21,945
-3,389
-13,821
2,621
-4,714
-6,036
22,140
19,119
21,717
32,406
54,191
High yield
World
-$4,000
-1,552
-551
3,207
5,092
8,230
11,588
21,356
6,165
23,602
51,142
38,575
36,422
22,524
-$16,663
24,769
53,048
-22,124
-26,259
-14,211
-17,834
-2,242
20,600
18,950
4,046
3,271
33,612
-51,310
Government
Bond funds
-$5,101
2,643
4,582
4,336
2,461
3,887
11,212
9,403
-7,766
33,852
33,561
12,433
43,020
49,596
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
State muni
-$9,010
5,983
11,549
1,471
-7,410
3,480
11,229
7,621
10,119
64,316
14,076
-1,891
41,058
-35,989
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 23
Data Section 3
$574,322
306,550
250,056
250,597
268,027
263,542
301,994
368,249
340,061
273,479
309,725
340,899
336,677
396,914
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$342,511
251,663
245,152
205,236
184,371
239,620
354,878
479,180
372,414
284,153
379,399
397,614
361,349
509,152
World
Equity funds
$403,304
395,863
399,654
382,504
474,842
514,195
557,640
659,282
617,104
474,590
547,907
584,982
563,013
736,742
Total return
$56,973
65,634
75,664
96,799
125,374
126,548
127,505
183,358
154,810
150,119
181,172
233,710
239,194
299,381
Hybrid funds
$79,200
127,711
172,587
186,661
165,644
171,630
183,990
247,220
277,182
426,750
450,183
448,545
489,989
467,258
Investment
grade
$27,405
36,277
39,665
65,577
48,028
41,721
44,937
54,851
47,244
69,908
95,709
127,901
121,341
169,305
High yield
World
$7,622
7,797
9,779
17,126
17,174
23,464
28,861
45,144
53,051
59,445
105,958
113,479
112,775
127,500
$24,359
58,987
93,874
71,167
38,512
32,063
29,690
34,593
64,527
90,702
79,454
72,098
109,647
74,287
Government
Bond funds
$7,345
12,940
15,772
21,921
19,476
21,832
30,986
40,931
38,333
68,165
93,503
99,541
122,442
171,132
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
State muni
$24,180
32,282
43,168
44,688
34,548
38,331
46,985
54,582
69,983
113,284
108,761
90,198
127,248
110,910
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
TABLE 24
Data Section 3
183
184
$343,618
176,020
144,274
94,572
57,575
55,786
64,336
60,884
58,645
44,893
41,942
48,404
45,118
68,235
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$169,388
85,824
71,084
41,777
27,630
38,396
56,926
68,791
48,079
47,195
55,916
40,005
47,469
44,070
World
$139,153
114,364
104,741
100,328
84,366
81,252
81,396
92,982
87,013
69,478
71,901
81,757
96,856
110,827
Total return
$13,473
17,912
18,021
19,116
18,021
17,645
18,551
22,927
26,356
24,167
23,959
29,611
26,647
36,886
Hybrid funds
$16,756
32,627
39,454
33,917
23,666
20,833
21,896
41,589
50,420
76,509
58,257
59,209
55,239
52,728
Investment
grade
$10,298
11,378
11,201
17,110
8,884
7,182
7,219
7,880
7,386
13,182
13,068
14,761
13,351
18,605
High yield
World
$2,808
1,832
2,142
3,204
1,917
2,657
2,640
4,480
8,350
7,490
8,019
8,967
8,088
23,367
$15,829
24,779
37,280
18,355
7,023
6,575
5,972
10,226
27,495
18,336
14,510
14,314
14,908
13,318
Government
Bond funds
$1,866
3,085
3,705
5,037
4,528
4,938
7,196
5,229
10,221
9,113
12,131
12,261
13,911
13,575
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
State muni
$10,870
13,686
13,602
10,218
6,135
6,435
6,869
10,680
17,767
20,037
15,263
13,930
16,129
22,075
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 25
Data Section 3
$367,939
307,031
276,869
222,877
269,656
274,036
313,742
393,834
375,604
273,870
329,620
377,411
367,950
402,840
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$288,253
264,414
243,479
183,743
122,228
148,065
223,271
347,697
424,738
258,011
317,312
382,414
353,114
371,483
World
Equity funds
$376,017
320,618
355,866
301,423
367,397
456,429
510,674
647,890
678,832
483,776
592,460
658,496
661,453
723,925
Total return
$77,219
58,850
67,407
63,329
77,426
86,040
106,023
143,992
165,257
127,156
146,208
190,432
194,716
232,700
Hybrid funds
$71,781
87,986
117,197
150,032
141,777
136,146
146,821
186,062
281,436
248,420
347,320
406,862
393,574
529,849
Investment
grade
$37,560
34,381
36,207
47,355
49,029
52,006
42,088
56,322
50,615
51,120
79,668
107,115
91,186
119,625
High yield
World
$10,439
8,818
10,701
14,369
12,049
16,160
17,741
25,674
48,920
39,161
57,128
75,695
77,906
117,088
$35,865
37,939
53,918
79,437
58,824
43,913
43,975
38,850
59,781
69,920
74,239
69,545
77,344
117,036
Government
Bond funds
$11,382
10,825
12,187
18,026
16,956
18,114
20,600
30,342
46,413
37,169
61,250
88,333
83,524
122,824
Multisector
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
TABLE 26
Data Section 3
185
$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
State muni
$31,908
27,401
33,434
41,443
39,625
34,488
36,205
46,949
63,070
56,420
93,331
91,997
89,538
138,246
National muni
186
$287,910
198,317
169,848
95,166
67,443
70,651
79,431
78,376
71,000
51,674
48,533
56,101
52,265
65,544
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$165,451
96,279
77,208
38,910
18,190
23,033
37,597
58,486
76,138
47,657
61,271
51,303
49,308
39,677
World
$170,983
109,990
120,738
88,479
80,067
96,859
104,908
130,050
126,580
80,821
82,072
96,961
118,626
102,688
Total return
$29,948
17,410
18,234
13,520
12,886
15,312
20,164
21,963
41,562
27,241
23,668
33,126
24,594
31,054
Hybrid funds
$18,715
23,098
30,174
38,711
25,150
19,585
22,073
26,642
36,713
52,499
49,736
50,000
45,087
87,191
Investment
grade
$15,519
12,393
11,706
13,387
11,272
10,719
7,447
11,122
10,051
9,830
9,990
13,831
11,100
14,094
High yield
World
$3,990
2,363
1,771
2,756
1,950
1,731
2,172
2,594
6,317
4,172
5,707
8,176
6,534
11,256
$20,986
21,058
24,188
32,209
12,969
8,936
9,521
8,210
11,642
20,168
15,679
13,597
13,600
21,878
Government
Bond funds
$2,930
2,557
2,708
4,596
4,588
4,769
6,370
6,415
9,908
6,257
10,823
11,035
9,809
12,287
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
State muni
$12,153
12,583
11,787
11,992
8,467
6,798
6,420
10,692
14,562
12,584
16,617
14,022
12,780
30,728
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 27
Data Section 3
TABLE 28
Total
Equity
funds
Hybrid
funds
Bond
funds
Total
Equity
funds
Hybrid
funds
Bond
funds
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
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
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
21.9
23.8%
28.5
27.1
18.7
15.7
15.9
11.2
10.6
16.7
15.1
13.8
13.7
16.0
19.1
20.9
16.4
19.4
16.2
15.5
14.7
15.7
18.5
23.9
19.9
18.7
22.1
20.3
20.2
19.6%
28.3
20.5
18.4
17.0
16.4
21.5
22.6
28.3
20.3
20.1
20.5
20.4
25.1
27.0
25.6
27.4
31.4
26.7
24.2
23.1
25.8
35.8
27.8
31.0
32.0
26.9
35.7
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
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
41.6
35.3
41.2
29.5
23.1
23.2
23.7
27.0
34.9
28.1
27.3
30.0
28.7
24.9
30.2%
40.7
35.8
25.7
23.0
22.2
17.1
16.3
24.2
21.3
19.8
18.9
21.7
26.0
29.0
21.2
24.7
19.6
18.1
17.3
18.7
21.4
29.9
24.1
21.8
25.9
22.9
22.9
30.7%
47.5
30.4
27.7
26.2
24.1
32.7
33.8
43.2
30.5
32.0
31.0
30.6
36.8
36.8
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
Data Section 3
Year
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.
187
TABLE 29
Portfolio Holdings of Long-Term Mutual Funds and Share of Total Net Assets
Millions of dollars, year-end
Year
Data Section 3
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total net
assets
$566,849
850,744
1,096,343
1,504,644
1,544,320
2,058,275
2,623,994
3,409,315
4,173,531
5,233,193
5,119,387
4,689,604
4,118,402
5,362,398
6,193,746
6,864,286
8,059,426
8,913,973
5,770,338
7,796,780
9,027,411
8,935,072
10,350,142
12,299,349
$128,153
163,093
225,359
272,294
223,070
259,075
264,924
282,184
286,568
293,542
309,764
379,853
481,661
504,733
537,245
612,775
644,732
748,915
704,816
849,600
1,082,584
1,182,227
1,374,182
1,200,819
Corporate
bonds
Municipal
bonds
$45,365
87,571
115,390
165,388
155,157
190,880
238,031
292,901
389,236
388,388
348,935
371,347
417,484
502,117
533,328
550,055
668,357
783,717
676,535
1,021,893
1,257,847
1,316,386
1,600,084
1,720,795
$117,084
149,439
191,779
249,203
211,127
245,330
245,182
266,324
292,395
267,428
269,334
289,653
320,477
331,984
318,353
330,945
359,164
369,050
336,873
451,151
479,273
506,116
591,430
511,364
Liquid
assets
Other
$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
259,580
306,756
302,922
346,491
381,245
296,222
365,358
330,811
462,471
517,693
653,263
$11,356
8,967
4,645
6,187
10,822
6,024
5,649
10,876
9,760
5,204
4,010
1,768
1,913
3,033
8,505
12,537
15,924
21,087
21,534
17,412
7,320
-38,810
-24,974
-5,111
Percent, year-end
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
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
100.0
100.0
100.0
100.0
38.2%
44.8
44.3
47.3
53.3
59.0
65.5
69.2
72.0
77.6
76.4
73.0
65.3
70.1
72.5
73.6
74.8
74.2
64.7
65.3
65.0
61.6
60.8
66.8
22.6%
19.2
20.6
18.1
14.4
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
13.2
13.3
9.8
8.0%
10.3
10.5
11.0
10.0
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
20.7%
17.6
17.5
16.6
13.7
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
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
2.0%
1.1
0.4
0.4
0.7
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
-0.2
0.0
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.
188
TABLE 30
Year
Total net
assets
Corporate Municipal
bonds
bonds
Total net
assets
Liquid
assets
Other
Millions of
dollars
Equity funds
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
93.7%
94.3
94.1
95.0
95.2
95.4
95.6
95.2
93.9
95.8
95.7
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
0.3
0.5%
0.5
0.8
0.5
0.5
0.4
0.4
0.4
0.5
0.5
0.5
0.6
0.7
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
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
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
$3,934,904
3,392,973
2,643,288
3,654,851
4,344,067
4,886,648
5,833,565
6,413,884
3,637,712
4,872,915
5,596,836
5,213,796
5,940,089
7,763,869
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
59.1%
59.8
57.3
62.3
63.5
62.6
61.1
60.5
55.4
58.2
60.5
59.2
59.2
61.5
13.4%
11.9
12.4
10.6
11.0
10.5
10.1
10.4
9.8
9.8
8.9
9.4
8.9
7.9
19.7%
20.4
22.4
19.8
18.5
19.6
19.6
20.8
24.4
23.5
22.4
22.2
21.3
18.9
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
7.4%
7.5
7.5
6.9
6.6
6.9
8.8
8.0
9.6
7.6
7.3
7.9
9.4
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
$360,916
358,027
335,276
447,549
552,010
621,344
731,358
821,279
562,051
717,780
842,040
882,980
1,030,820
1,270,200
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
1.4%
1.1
0.6
0.8
0.7
0.8
0.8
0.9
0.6
0.8
0.9
0.8
0.9
1.1
31.1%
35.5
37.6
35.8
36.3
39.6
37.4
38.8
40.8
34.8
38.1
37.8
37.0
32.8
31.5%
29.9
28.1
31.2
31.7
30.0
33.4
35.0
33.2
37.4
40.0
38.2
39.5
43.7
32.6%
30.8
28.1
26.2
24.2
24.0
23.7
21.6
21.2
20.1
18.1
17.4
17.1
15.3
3.1%
2.7
5.5
5.9
6.6
5.1
4.3
3.0
3.6
6.5
3.0
7.4
6.6
7.5
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
-0.5
$823,566
938,602
1,139,838
1,259,998
1,297,669
1,356,295
1,494,503
1,678,810
1,570,574
2,206,086
2,588,536
2,838,295
3,379,234
3,265,281
Data Section 3
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Hybrid funds
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Bond funds
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
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.
189
TABLE 31
Data Section 3
Paid dividends
190
Year
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
$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
98,130
115,500
143,496
181,008
181,603
168,014
180,958
202,306
215,083
209,044
$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
27,098
21,408
20,497
24,395
34,751
42,462
60,147
77,582
70,099
58,891
62,214
68,726
83,257
84,554
Hybrid
funds
$583
1,098
1,499
1,934
1,873
2,165
2,350
2,337
4,483
6,810
6,896
9,052
9,844
11,607
11,456
12,821
10,848
10,361
9,740
9,920
12,186
16,690
19,132
25,055
26,027
22,208
23,277
29,039
24,938
24,105
Reinvested dividends
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
37,086
35,610
38,378
40,318
44,060
50,078
50,269
51,199
51,828
51,611
51,193
56,348
64,217
78,370
85,476
86,914
95,467
104,541
106,888
100,385
$4,655
7,731
13,991
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
66,277
62,306
62,413
66,870
78,252
94,023
119,072
151,774
152,628
140,354
152,310
172,785
186,936
184,178
$1,882
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
23,836
19,263
18,572
22,141
31,440
38,461
54,222
69,604
63,173
53,107
56,396
62,473
76,232
78,118
$432
768
1,087
1,476
1,217
1,383
1,725
1,907
2,937
4,270
5,043
6,929
8,196
9,602
9,528
10,746
9,537
9,270
8,778
8,840
10,668
14,579
16,988
22,090
23,041
19,384
20,671
25,702
22,675
22,033
$2,432
4,642
9,197
12,659
11,801
12,082
12,678
15,139
18,611
21,672
21,122
21,421
23,672
25,721
28,135
31,894
32,904
33,773
35,064
35,889
36,144
40,984
47,862
60,080
66,414
67,864
75,243
84,610
88,030
84,028
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.
TABLE 32
Paid and Reinvested Capital Gains of Long-Term Mutual Funds by Type of Fund
Millions of dollars, annual
Paid capital gains
Total
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
$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
129,042
256,912
413,630
132,402
15,300
42,930
73,227
100,113
238,955
$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
306,027
60,088
10,538
7,782
41,595
113,204
235,974
377,752
110,892
5,740
15,741
51,447
66,760
201,761
Hybrid
funds
$553
739
1,240
1,605
620
540
443
861
1,488
3,496
2,411
3,343
10,826
19,080
21,572
16,841
18,645
6,105
907
758
6,600
11,887
18,719
32,161
9,786
771
1,292
5,460
5,508
22,646
Total
Equity
funds
$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
117,556
236,464
380,915
123,270
13,994
38,942
68,205
93,755
227,645
$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
279,920
56,965
9,838
7,188
38,079
103,244
217,059
347,667
103,805
5,418
14,786
48,123
62,871
191,948
Hybrid
funds
$338
398
778
1,056
364
348
255
485
1,134
2,697
2,093
2,845
9,769
17,360
19,698
15,229
17,506
5,790
887
703
6,167
10,948
17,509
30,010
9,064
702
1,201
5,234
5,279
21,954
Bond
funds
$129
261
1,646
1,312
522
617
285
576
1,538
2,862
733
471
1,009
2,198
3,935
979
1,002
2,065
4,024
5,065
5,649
3,363
1,896
3,238
10,401
7,874
22,955
14,849
25,605
13,743
Data Section 3
Year
Equity
funds
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.
191
192
$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
6,933,569
7,323,174
8,489,676
8,149,604
9,161,494
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
$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
6,453,781
6,857,839
8,097,151
7,566,272
8,648,465
Sales
Total portfolio
$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
479,789
465,336
392,525
583,332
513,029
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
2,808,450
3,030,587
2,769,043
3,403,370
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
2,750,108
3,031,222
2,824,338
3,220,700
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
58,342
-636
-55,295
182,670
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
$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
4,288,597
4,514,725
5,459,089
5,380,561
5,758,124
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
3,910,270
4,107,731
5,065,928
4,741,934
5,427,765
Sales
Other securities
Total Portfolio, Common Stock, and Other Securities: Purchases, Sales, and Net Purchases by Long-Term Mutual Funds
TABLE 33
Data Section 3
$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
378,326
406,994
393,161
638,627
330,359
Net purchases
193
$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
3,515,829
2,707,825
2,141,469
1,966,771
2,279,606
2,671,747
3,231,711
3,760,927
3,628,838
2,750,652
2,828,803
2,915,355
2,640,165
3,180,812
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
$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
3,258,842
2,593,707
2,113,187
1,823,665
2,111,483
2,525,196
3,064,674
3,659,406
3,699,013
2,677,342
2,828,817
2,943,325
2,696,111
2,995,222
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
256,986
114,118
28,282
143,107
168,123
146,551
167,038
101,521
-70,175
73,309
-14
-27,970
-55,945
185,589
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
3,393,110
2,571,241
2,017,974
1,902,974
2,217,210
2,592,213
3,129,932
3,582,916
3,362,109
2,433,306
2,567,483
2,755,591
2,498,664
3,043,933
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
3,144,180
2,464,672
1,999,957
1,758,426
2,053,971
2,452,620
2,966,350
3,490,374
3,426,659
2,339,237
2,531,812
2,784,830
2,570,931
2,876,936
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
248,930
106,569
18,017
144,548
163,238
139,593
163,582
92,542
-64,551
94,069
35,671
-29,239
-72,267
166,997
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
$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
122,718
136,583
123,495
63,797
62,396
79,534
101,779
178,011
266,730
317,346
261,320
159,764
141,501
136,879
Purchases
Total Portfolio, Common Stock, and Other Securities: Purchases, Sales, and Net Purchases by Equity Mutual Funds
TABLE 34
Data Section 3
$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
114,663
129,035
113,230
65,238
57,512
72,576
98,324
169,031
272,354
338,106
297,005
158,495
125,179
118,286
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
8,056
7,549
10,264
-1,441
4,884
6,958
3,455
8,980
-5,624
-20,760
-35,685
1,269
16,322
18,592
Net purchases
194
$11,589
19,647
34,746
48,335
28,070
26,747
31,003
42,937
64,435
116,821
141,268
189,989
233,471
266,438
290,682
303,946
308,821
357,557
340,650
360,653
404,955
397,695
408,861
529,061
594,156
477,006
509,698
657,722
716,959
885,443
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
$9,258
14,915
28,007
44,168
31,455
24,864
27,042
34,656
43,855
74,135
114,962
180,066
211,094
245,278
266,334
304,642
335,531
334,161
320,591
312,111
337,219
346,260
381,376
465,049
577,635
443,131
461,565
594,195
656,003
805,763
Sales
Total portfolio
$2,331
4,732
6,739
4,168
-3,384
1,883
3,961
8,281
20,579
42,686
26,306
9,923
22,377
21,160
24,347
-696
-26,711
23,396
20,059
48,542
67,736
51,435
27,485
64,011
16,521
33,876
48,134
63,527
60,956
79,680
Net purchases
$7,129
13,378
21,894
26,282
10,628
12,459
13,329
18,658
23,966
49,689
54,812
67,628
92,495
98,115
115,714
128,313
158,039
155,235
145,370
137,490
163,795
165,487
191,740
241,633
281,814
200,907
223,102
252,563
250,467
339,347
Purchases
$5,822
10,513
19,451
23,989
13,833
13,598
11,849
15,435
17,200
30,490
46,429
60,612
88,487
94,990
111,414
138,952
174,998
134,368
129,204
113,785
132,966
150,166
197,120
230,855
273,655
194,826
203,091
227,541
234,857
322,799
Sales
Common stock
$1,308
2,865
2,443
2,293
-3,205
-1,139
1,480
3,223
6,766
19,200
8,383
7,016
4,008
3,125
4,300
-10,639
-16,960
20,868
16,166
23,706
30,829
15,321
-5,380
10,778
8,159
6,081
20,010
25,021
15,611
16,548
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
$4,459
6,269
12,853
22,053
17,442
14,288
17,674
24,279
40,469
67,131
86,456
122,360
140,976
168,323
174,967
175,633
150,782
202,322
195,280
223,163
241,160
232,208
217,122
287,428
312,342
276,099
286,597
405,160
466,491
546,096
Purchases
Total Portfolio, Common Stock, and Other Securities: Purchases, Sales, and Net Purchases by Hybrid Mutual Funds
TABLE 35
Data Section 3
$3,436
4,402
8,556
20,179
17,622
11,266
15,192
19,221
26,655
43,645
68,533
119,454
122,607
150,288
154,920
165,690
160,533
199,794
191,387
198,326
204,253
196,094
184,256
234,194
303,980
248,305
258,473
366,654
421,146
482,964
Sales
Other securities
$1,023
1,867
4,297
1,874
-179
3,022
2,481
5,058
13,814
23,486
17,923
2,907
18,370
18,036
20,047
9,943
-9,751
2,528
3,893
24,837
36,907
36,114
32,865
53,233
8,363
27,794
28,124
38,506
45,345
63,132
Net purchases
195
Purchases
$52,751
162,522
336,127
285,363
262,577
296,651
336,125
440,988
545,966
718,488
674,467
574,655
667,876
696,990
847,129
900,406
1,098,277
1,623,148
1,536,851
1,954,181
1,625,620
1,764,932
2,096,791
2,808,624
3,130,056
3,705,911
3,984,673
4,916,598
4,792,481
5,095,239
Sales
$39,823
101,385
225,848
265,812
258,947
275,836
309,364
365,527
445,752
603,791
705,973
542,576
629,146
640,240
736,529
870,119
1,103,818
1,465,245
1,373,614
1,862,990
1,570,571
1,660,711
1,952,059
2,596,796
3,017,884
3,333,308
3,567,457
4,559,630
4,214,159
4,847,479
Total portfolio
Net purchases
$12,928
61,137
110,279
19,551
3,630
20,815
26,761
75,461
100,214
114,696
-31,506
32,079
38,730
56,750
110,600
30,287
-5,541
157,903
163,237
91,191
55,049
104,222
144,732
211,828
112,171
372,604
417,216
356,968
578,322
247,760
Purchases
$361
579
2,537
1,862
1,226
1,314
1,161
7,514
2,840
5,538
9,475
4,091
7,884
7,184
11,009
7,332
9,522
10,456
13,019
13,915
9,919
7,400
8,385
11,025
11,931
10,760
17,865
22,433
19,912
20,090
Sales
$865
465
2,062
1,310
1,347
1,071
1,101
7,056
2,338
5,009
9,209
4,445
6,292
7,344
10,512
8,086
11,239
10,617
12,593
12,500
11,640
8,019
8,753
11,900
15,242
9,448
15,204
18,851
18,550
20,965
Common stock
Net purchases
-$504
114
475
553
-121
243
60
457
502
529
266
-354
1,591
-160
496
-754
-1,717
-162
426
1,414
-1,721
-619
-367
-875
-3,311
1,312
2,661
3,582
1,362
-875
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.
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
Total Portfolio, Common Stock, and Other Securities: Purchases, Sales, and Net Purchases by Bond Mutual Funds
TABLE 36
Data Section 3
Sales
$38,958
100,919
223,785
264,502
257,600
274,765
308,264
358,471
443,415
598,783
696,764
538,131
622,854
632,896
726,016
862,033
1,092,579
1,454,628
1,361,021
1,850,490
1,558,931
1,652,691
1,943,306
2,584,896
3,002,642
3,323,860
3,552,253
4,540,780
4,195,609
4,826,515
Other securities
Net purchases
$13,432
61,024
109,805
18,999
3,751
20,572
26,700
75,004
99,712
114,167
-31,773
32,433
37,139
56,910
110,104
31,041
-3,824
158,064
162,811
89,777
56,770
104,840
145,099
212,703
115,482
371,292
414,555
353,386
576,960
248,635
TABLE 37
Total Net Assets and Number of Shareholder Accounts of Money Market Funds by Type
of Fund
Year-end
Total net assets
Millions of dollars
Data Section 4
Taxable
Thousands
Year
Total
Government
Prime
Taxexempt
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
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
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
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
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
Taxable
Total
Government
Prime
Taxexempt
13,845
14,935
16,313
17,675
18,570
21,314
22,969
23,556
23,647
23,585
25,383
30,144
32,200
35,624
38,847
43,616
48,138
47,236
45,380
41,214
37,636
36,837
37,067
39,130
38,111
33,466
30,302
28,670
27,863
26,602
2,282
2,351
2,397
2,484
1,684
1,814
2,283
2,557
2,826
2,806
3,047
3,823
4,241
4,643
4,452
4,843
6,333
6,806
6,815
5,973
5,629
5,505
4,306
4,691
5,422
5,311
4,511
4,536
4,592
4,977
11,274
12,085
13,256
14,348
15,947
18,359
19,294
19,306
18,945
18,780
20,299
24,042
25,688
28,342
32,009
36,344
39,156
37,618
35,910
32,438
29,164
28,526
29,699
30,970
29,075
24,989
22,620
21,373
20,635
19,143
289
499
660
842
939
1,141
1,391
1,693
1,876
1,999
2,037
2,279
2,271
2,638
2,386
2,428
2,649
2,811
2,655
2,803
2,843
2,806
3,063
3,469
3,614
3,166
3,171
2,761
2,635
2,483
196
TABLE 38
Number of Funds and Number of Share Classes of Money Market Funds by Type of Fund
Year-end
Number of funds
Taxable
Total
Government
Prime
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
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
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
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
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
Taxable
Total
Government
Prime
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
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
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
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
Data Section 4
Year
Taxexempt
Note: Data for funds that invest primarily in other mutual funds were excluded from the series.
197
198
$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
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$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
Government
$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
Prime
$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
$592,604
663,408
835,255
964,686
1,061,605
1,134,703
1,064,426
938,422
852,516
875,962
1,007,886
1,225,602
1,369,998
1,079,957
957,868
949,889
948,572
936,160
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
Government
$387,705
439,670
571,465
675,986
731,051
775,335
715,383
606,553
534,233
546,282
643,325
754,376
776,874
630,096
562,199
549,762
540,084
534,817
Prime
$110,113
122,747
142,126
155,785
178,716
189,484
192,032
190,621
191,810
203,436
224,077
285,700
303,392
235,383
205,975
196,451
202,975
196,287
Taxexempt
$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
Government
Prime
$152,441
207,334
282,596
403,537
512,547
789,263
820,238
733,136
675,762
744,837
899,259
1,102,903
1,071,475
1,179,827
1,056,696
879,888
937,263
950,894
Taxable
$309,203
395,478
516,423
648,460
783,644
1,150,607
1,200,649
1,101,599
1,049,185
1,150,860
1,330,565
1,860,158
2,462,239
2,235,937
1,846,054
1,741,533
1,744,951
1,782,173
Total
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
Taxable
Taxexempt
$27,758
34,911
42,585
44,111
55,154
69,597
84,265
99,671
120,189
132,938
144,952
182,392
190,287
163,553
124,031
95,247
84,451
74,325
Taxexempt
TABLE 39
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
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$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
Government
$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
Prime
$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
Taxexempt
$52,886
46,620
130,992
82,006
43,572
36,328
-80,168
-151,112
-88,675
2,509
96,348
172,626
114,180
-308,460
-124,115
-1,303
-1,145
-12,215
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
Government
$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
-69,747
-12,499
-7,552
-4,256
Prime
Taxable
Taxable
$7,200
9,758
14,728
9,827
18,655
10,043
1,335
-4,906
2,437
10,806
16,160
50,700
13,831
-67,992
-28,404
-9,265
7,187
-6,816
Taxexempt
$36,536
56,846
104,465
111,675
115,793
338,963
34,231
-112,292
-68,069
59,577
148,814
481,786
522,975
-230,690
-400,543
-122,658
809
27,422
Total
* 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
$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
Government
Prime
$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
-131,612
-180,102
54,489
6,899
Taxable
$2,715
4,473
7,642
411
7,944
11,297
14,919
14,680
16,156
10,089
9,272
33,253
-597
-27,639
-40,968
-29,389
-11,117
-9,969
Taxexempt
TABLE 40
Data Section 4
199
TABLE 41
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 flow 1
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
$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
Redemptions
New +
exchange
New 2
Exchange 3
$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
$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
$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
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
Regular 4
$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
Exchange 5
$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
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
200
TABLE 42
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
$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
$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
Tax-exempt
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
Total
Taxable
money market
funds
Tax-exempt
money market
funds
$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
$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
$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
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.
201
202
$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
Millions of dollars
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
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
U.S.
government Repurchase
agency issues agreements
20.4%
33.9%
15.9
38.2
14.4
39.1
22.0
44.9
20.5
58.4
20.6
62.7
20.6
45.7
20.3
40.9
21.6
34.7
20.7
32.8
26.3
34.0
28.5
34.1
25.4
35.2
25.1
37.8
30.4
33.4
37.1
28.2
32.0
37.9
34.5
31.7
33.2
35.5
33.8
36.3
34.5
35.9
28.1
50.0
21.5
58.6
24.1
53.7
36.2
26.8
35.4
30.6
33.3
33.0
28.9
31.6
26.7
33.0
29.4
27.9
Certificates
of deposit
4.3%
2.9
4.1
4.8
1.2
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.3
0.1
0.0
0.2
0.1
0.3
0.2
0.0
0.1
0.3
0.0
0.0
0.0
0.0
0.0
0.0
Eurodollar
CDs
4.3%
6.3
4.9
7.4
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1
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
0.0
0.0
Commercial
paper
7.3%
6.2
4.3
4.0
3.2
3.0
0.3
0.4
0.5
0.3
0.4
0.5
0.7
1.2
1.7
1.4
1.6
0.5
0.5
0.9
0.9
0.2
0.5
0.2
0.1
1.0
0.9
1.0
0.7
0.3
2 Prior
1 Prior
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
Year-end
Asset Composition of Taxable Government Money Market Funds as a Percentage of Total Net Assets
TABLE 43
Data Section 4
Bank
notes 1
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
Corporate
notes 2
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
Other
assets 3
1.3%
1.6
2.5
1.1
2.0
1.4
9.9
0.3
0.6
1.8
2.1
3.1
2.4
2.8
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
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
Days
Average
maturity
203
$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
Millions of dollars
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
U.S.
Treasury
bills
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
Other
Treasury
securities
4.1%
6.1
3.6
6.5
2.8
2.0
4.7
4.2
7.5
11.9
11.4
9.2
9.0
5.4
9.6
6.8
5.9
12.3
11.8
14.9
12.0
4.1
2.9
3.1
12.7
8.9
7.8
9.2
6.9
5.7
U.S.
government
agency issues
3.3%
3.1
4.4
4.8
2.8
2.8
2.9
3.7
4.9
5.9
5.6
6.2
5.1
5.3
4.6
4.8
3.9
6.0
8.1
8.1
8.5
11.8
9.9
11.3
8.4
8.3
12.8
13.6
16.8
15.7
13.6%
10.0
10.0
16.2
15.2
14.4
6.9
10.6
10.4
8.0
6.4
8.9
12.8
14.7
13.0
12.8
11.7
14.9
13.8
11.6
14.1
14.5
13.9
15.2
21.5
31.6
28.6
28.4
29.5
33.3
12.0%
10.2
11.6
8.9
14.1
9.3
8.9
6.9
6.9
3.2
4.5
4.5
4.3
3.7
3.6
3.9
6.6
7.3
7.0
5.1
5.7
6.0
4.4
5.5
4.7
5.5
6.7
3.1
3.0
2.3
Commercial
paper
3 Other
2 Prior
1 Prior
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
Year
Year-end
Asset Composition of Taxable Prime Money Market Funds as a Percentage of Total Net Assets
TABLE 44
Data Section 4
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
Bank
notes 1
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
Corporate
notes 2
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
Other
assets 3
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
Days
Average
maturity
204
$211
403
651
900
1,367
2,288
4,596
7,580
12,212
18,676
12,858
12,227
11,381
21,310
30,767
44,955
75,065
101,000
63,145
58,680
84,477
84,859
97,782
133,933
Equity
$1,215
1,910
3,072
4,503
4,803
6,774
8,808
13,900
23,156
29,634
44,053
51,157
57,579
101,781
168,785
261,060
394,590
537,552
424,300
621,506
832,984
957,600
1,185,286
1,459,808
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
29,900
50,520
79,480
101,323
126,480
61,471
70,678
120,797
121,974
97,693
120,030
Total
-$21
97
205
154
342
633
1,572
1,617
2,006
3,392
3,549
1,511
1,733
3,542
6,089
6,331
13,842
17,154
6,094
4,303
4,905
3,147
-2,555
12,366
Equity
$152
378
929
1,006
225
502
885
1,763
4,370
3,180
6,852
7,419
9,860
26,358
44,430
73,149
87,480
109,326
55,376
66,375
115,891
118,827
100,248
107,665
2 Net
Hybrid
and bond
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.
$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
123,091
199,552
306,016
469,655
638,552
487,445
680,186
917,461
1,042,459
1,283,069
1,593,740
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1 Funds
Total
Year
20
20
21
24
32
36
45
94
175
212
215
213
268
301
375
475
604
722
860
953
988
1,094
1,163
1,267
Total
11
10
10
12
15
19
24
41
75
83
59
59
69
72
71
92
122
129
129
139
152
162
168
172
Equity
Year-end
Number of funds
9
10
11
12
17
17
21
53
100
129
156
154
199
229
304
383
482
593
731
814
836
932
995
1,095
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
720
963
1,298
1,864
2,360
2,815
3,043
3,146
3,443
3,773
4,044
Total
11
10
10
12
15
19
28
58
112
137
97
96
121
123
131
190
267
315
330
349
372
385
435
433
Equity
Year-end
9
10
11
12
17
18
28
90
193
257
317
354
504
597
832
1,108
1,597
2,045
2,485
2,694
2,774
3,058
3,338
3,611
Hybrid
and bond
205
$68
192
371
358
583
987
2,321
2,858
4,398
6,861
6,019
4,306
5,434
6,695
10,466
12,381
23,162
34,163
29,214
21,549
22,608
22,092
19,570
34,071
$348
580
1,246
1,594
1,197
1,376
2,201
3,459
8,532
9,888
18,072
18,271
22,759
40,267
66,355
110,481
139,929
193,019
185,430
170,069
271,121
333,629
318,147
383,960
$351
579
1,255
1,533
1,341
1,750
3,621
4,753
9,938
12,759
18,607
17,606
23,063
38,444
63,136
106,077
138,855
193,836
183,741
172,249
268,355
327,623
311,505
377,493
Total
$58
142
294
293
389
692
1,847
2,017
3,578
5,575
4,936
3,591
4,571
5,456
8,416
9,902
18,259
26,652
23,415
19,642
21,226
20,807
18,096
31,315
$293
437
961
1,240
952
1,059
1,774
2,736
6,360
7,184
13,671
14,015
18,492
32,988
54,720
96,175
120,596
167,183
160,326
152,607
247,128
306,816
293,409
346,178
Hybrid
and
Equity bond
New 3
Sales
$65
194
362
419
439
612
901
1,565
2,993
3,990
5,485
4,971
5,131
8,518
13,685
16,784
24,236
33,346
30,903
19,369
25,375
28,098
26,212
40,538
Total
$10
50
76
65
194
295
474
842
821
1,287
1,083
715
863
1,239
2,050
2,478
4,903
7,510
5,799
1,907
1,382
1,285
1,474
2,756
$55
143
286
354
245
317
428
723
2,172
2,703
4,402
4,256
4,268
7,279
11,635
14,306
19,333
25,836
25,104
17,462
23,993
26,813
24,738
37,782
Hybrid
and
Equity bond
Exchange 4
$285
298
483
793
1,213
1,227
2,066
2,937
6,554
10,177
13,690
13,647
16,600
17,062
26,301
43,381
61,769
100,702
153,174
120,940
172,933
233,747
240,023
298,001
Total
$89
95
166
205
241
354
749
1,241
2,392
3,469
2,470
2,795
3,701
3,153
4,376
6,050
9,320
17,009
23,120
17,245
17,703
18,945
22,125
21,706
$196
203
318
588
972
873
1,317
1,696
4,162
6,708
11,220
10,852
12,899
13,909
21,925
37,331
52,449
83,693
130,054
103,694
155,230
214,802
217,899
276,296
Hybrid
and
Equity 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
19,845
35,351
49,052
82,025
121,426
102,462
150,824
205,388
214,666
264,637
Total
$87
79
130
156
166
233
519
774
1,541
2,553
2,027
2,143
3,021
2,590
3,696
5,159
7,808
13,767
18,171
15,463
16,059
17,251
20,482
20,083
$99
105
174
297
517
535
771
975
2,225
4,084
7,223
7,403
9,189
10,196
16,149
30,192
41,244
68,258
103,255
86,999
134,765
188,137
194,183
244,554
Hybrid
and
Equity bond
Regular 5
Redemptions
2 Net
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.
$416
772
1,617
1,953
1,781
2,362
4,522
6,317
12,931
16,749
24,092
22,577
28,193
46,962
76,821
122,861
163,091
227,182
214,644
191,618
293,730
355,721
337,717
418,032
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1 Funds
Total
Year
Hybrid
and
Equity bond
New + exchange
TABLE 46
Data Section 5
Total
$100
113
180
340
531
459
776
1,189
2,788
3,540
4,440
4,101
4,391
4,277
6,456
8,030
12,717
18,677
31,748
18,477
22,109
28,359
25,358
33,365
$3
16
36
49
75
121
230
468
850
916
443
652
681
564
681
891
1,512
3,242
4,949
1,783
1,644
1,695
1,643
1,623
$97
97
144
291
456
338
546
721
1,938
2,624
3,997
3,449
3,710
3,713
5,776
7,139
11,205
15,435
26,799
16,695
20,465
26,665
23,715
31,742
Hybrid
and
Equity bond
Exchange 6
206
$27,460
32,078
57,042
97,759
170,302
264,998
387,411
384,039
370,560
327,417
455,293
554,044
618,699
747,468
854,715
601,728
835,422
1,016,713
1,093,749
1,311,077
1,734,942
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$19,445
22,257
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
S&P 500
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
$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
$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
82,889
106,577
120,672
157,903
192,736
238,098
280,534
306,148
$6,350
3,298
11,808
24,780
34,847
46,143
61,603
25,592
26,735
25,255
35,234
40,130
27,877
32,974
61,139
34,927
55,976
57,560
54,828
59,043
114,453
$3,916
1,821
8,816
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
$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
Other
domestic
Hybrid
and bond
Other
domestic
World
Equity
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
World
$980
525
1,442
2,108
3,591
5,099
5,197
2,477
7,582
6,616
2,266
6,651
8,007
8,074
16,473
9,924
27,135
24,268
19,895
28,525
34,062
Hybrid
and bond
*
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
69
81
87
105
132
156
197
271
286
313
321
328
322
342
354
359
357
365
382
372
372
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
38
42
48
60
72
86
97
120
126
132
128
127
119
125
125
122
113
111
111
103
96
S&P 500
S&P 500
15
17
18
22
27
37
59
99
110
124
134
146
147
157
159
163
151
161
169
166
171
6
7
7
7
12
15
20
26
24
28
30
28
29
33
37
41
49
50
57
58
58
10
15
14
16
21
18
21
26
26
29
29
27
27
27
33
33
44
43
45
45
47
73
95
110
143
205
252
323
465
518
578
601
633
647
697
735
754
757
776
856
871
882
42
53
63
86
115
148
166
221
238
255
253
262
258
272
276
278
259
253
260
247
234
15
17
19
25
38
52
95
163
197
221
243
269
279
303
312
316
291
301
337
349
363
Other
domestic
Total
Other
domestic
Hybrid
and bond
Equity
Equity
World
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
207
6
10
11
11
21
25
31
43
43
53
56
55
62
70
83
95
107
121
144
153
156
World
10
15
17
21
31
27
31
38
40
49
49
47
48
52
64
65
100
101
115
122
129
Hybrid
and bond
208
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
$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
$2,064
1,767
2,815
4,103
6,388
9,128
12,608
9,225
16,612
20,295
18,550
20,992
22,684
27,072
43,102
54,099
82,744
74,079
85,081
90,496
115,709
$11,208
10,172
17,665
34,903
54,093
79,382
112,686
107,344
94,018
99,640
104,703
128,162
131,335
152,436
200,041
201,211
181,737
212,865
268,319
277,651
345,892
$7,826
7,103
13,087
26,165
41,160
59,457
81,540
75,990
58,654
57,060
54,472
63,371
58,818
59,125
76,300
74,131
60,024
59,437
80,167
79,206
95,555
$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
$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
World
$1,644
1,361
1,895
3,093
4,555
6,362
8,920
6,351
10,458
13,154
13,372
16,253
17,840
19,870
28,133
40,000
50,177
56,716
68,274
73,720
81,219
Hybrid
and bond
$2,059
1,677
4,180
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
Total
2 Exchange
Equity
Exchange 2
$1,072
874
2,816
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
$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
Other
S&P 500 domestic
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.
$13,267 $8,898
11,850
7,976
21,845 15,903
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
189,914 69,619
259,419 93,691
249,581 87,082
243,411 69,398
279,016 70,013
330,845 93,679
338,948 93,429
432,920 111,144
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1 New
Hybrid
and bond
Other
S&P 500 domestic
World
Other
S&P 500 domestic
Total
Equity
Equity
Year
New 1
New + exchange
TABLE 49
Data Section 5
$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
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
Hybrid
and bond
$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
$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
$1,084
1,241
1,373
1,995
2,797
4,029
7,411
6,749
9,030
13,679
16,284
14,341
14,677
18,999
26,630
44,175
55,609
49,811
65,186
61,971
81,647
Hybrid
and bond
$5,278
7,134
7,723
13,578
24,753
40,024
60,809
80,788
68,474
74,963
76,804
90,044
102,053
118,530
141,059
167,817
133,211
162,503
219,553
212,633
248,695
Total
$3,996
5,383
5,732
10,330
19,824
32,563
48,336
61,735
47,792
48,625
42,814
50,340
54,621
59,556
71,405
62,324
49,794
56,993
81,877
79,623
89,331
$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
Other
S&P 500 domestic
World
Other
S&P 500 domestic
$6,917 $4,982
8,552
6,155
10,037
7,087
17,900 13,382
38,427 29,286
56,700 44,208
83,979 63,612
110,793 81,237
95,512 63,823
102,497 63,267
101,596 53,457
119,180 63,228
135,467 71,080
156,940 75,527
198,280 95,131
214,654 79,416
187,435 61,203
221,456 70,821
276,017 100,548
279,905 100,568
318,467 105,603
Total
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
World
$715
863
719
1,253
1,681
2,232
4,146
4,278
5,353
8,296
10,035
9,756
11,036
13,088
16,764
34,288
27,525
35,991
52,689
49,071
53,113
Hybrid
and bond
$1,639
1,418
2,314
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
Total
$986
772
1,355
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
$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
Other
S&P 500 domestic
Equity
Exchange 2
$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
World
$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
Hybrid
and bond
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.
2 Exchange
1 Regular
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Year
Regular 1
Regular + exchange
TABLE 50
Data Section 5
209
TABLE 51
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
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Equity
$6,503
19,954
44,975
73,978
116,187
165,056
123,859
201,662
259,162
248,621
289,501
382,744
$1,395
3,768
8,479
12,593
18,186
28,259
27,089
41,989
52,074
58,739
141,808
187,004
$1,332
1,943
2,752
3,868
5,415
8,250
9,233
13,315
15,707
18,450
23,541
25,919
$9,411
7,661
5,386
5,067
5,299
7,141
10,095
13,074
13,979
9,231
9,372
7,880
$1,659
9,861
20,289
24,715
31,696
44,177
44,413
38,260
40,096
19,579
28,652
32,563
Data Section 5
178
306
449
509
576
665
737
725
728
754
782
813
29
46
101
148
202
259
346
404
390
415
445
505
Money
market
$1,306
9,298
18,468
20,488
26,854
32,333
31,758
28,423
28,997
7,394
-492
9,293
$370
1,872
3,447
3,582
3,696
7,809
8,668
7,066
8,046
7,004
25,083
21,255
$43
476
680
1,067
1,222
2,525
2,058
2,434
2,118
2,803
3,920
2,475
-$60
-1,785
-2,306
-423
-76
1,510
1,929
337
936
2,378
141
-460
Year-end
259
438
681
804
933
1,105
1,280
1,335
1,347
1,415
1,500
1,602
Bond
Number of funds
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Hybrid
$18,641
33,327
61,592
95,505
145,088
208,706
170,275
270,039
340,922
335,040
464,222
603,547
Equity
Year-end
43
75
116
131
136
160
177
187
210
228
258
272
9
11
15
16
19
21
20
19
19
18
15
12
400
618
920
1,273
1,618
1,891
2,106
2,224
2,132
2,257
2,472
2,677
253
408
582
766
904
1,022
1,097
1,130
1,104
1,137
1,202
1,261
59
82
158
267
451
571
700
757
676
726
833
948
70
108
154
208
228
259
271
304
320
362
409
448
18
20
26
32
35
39
38
33
32
32
28
20
1 Retirement
mutual funds include share classes and funds that are predominantly 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.
210
$801
2,404
4,547
5,519
7,174
14,354
16,597
14,581
18,265
21,394
52,218
53,545
Hybrid
$754
1,202
1,502
2,146
2,342
4,446
5,323
6,869
7,310
7,628
9,926
10,922
Bond
$40,681
40,933
30,972
33,915
37,876
24,671
31,325
33,272
69,284
92,252
36,308
36,169
Money
market
Sales
$571
2,310
1,241
1,562
3,622
3,982
5,176
17,984
14,958
10,558
10,275
15,068
Equity
$71
180
161
215
517
641
1,581
3,062
1,580
2,058
5,193
11,814
Hybrid
$228
136
105
170
253
496
715
1,414
710
1,510
792
595
Bond
Exchange 4
$60
159
175
193
321
804
1,305
899
609
866
605
568
Money
market
$1,829
2,749
6,250
13,024
23,084
41,765
40,671
37,214
53,468
75,918
79,922
79,502
Equity
$480
663
1,177
1,983
3,658
6,726
8,141
7,000
10,292
14,277
25,339
34,599
Hybrid
$902
745
802
1,069
1,181
2,122
3,489
3,808
5,037
5,625
6,017
8,326
Bond
Regular 5
$40,750
42,594
33,015
34,075
37,760
23,022
29,780
32,830
68,361
90,161
36,284
36,634
Money
market
$213
224
326
614
1,104
1,964
5,079
18,190
14,470
12,769
12,450
12,530
Equity
Redemptions
$22
48
84
170
336
460
1,370
3,577
1,508
2,171
6,990
9,505
Hybrid
$37
117
125
180
193
295
491
2,041
866
709
780
716
Bond
Exchange 6
2 Net
mutual funds include share classes and funds that are predominantly 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.
$2,778
9,961
23,802
32,565
47,420
72,080
72,332
65,843
81,977
85,523
81,606
86,256
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1 Retirement
Equity
Year
New 3
TABLE 52
Data Section 5
211
$51
282
438
456
513
944
921
1,004
596
579
487
564
Money
market
212
$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
$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
$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
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
$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
Lifestyle
2 Net
1 Categories
$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
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Lifestyle
Target
date
Total
Year
Target
date
26
44
77
110
130
146
147
171
192
241
324
422
494
613
643
638
674
682
760
Total
6
9
12
17
19
24
25
25
45
84
127
184
245
338
379
377
412
430
491
Target
date
Year-end
Number of funds
20
35
65
93
111
122
122
146
147
157
197
238
249
275
264
261
262
252
269
Lifestyle
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
Total
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
Target
date
Year-end
40
61
124
176
210
237
269
350
379
477
663
776
802
848
837
836
864
844
896
Lifestyle
Target Date and Lifestyle Mutual Funds:1 Total Net Assets, Net New Cash Flow, Number of Funds, and Number of Share Classes
TABLE 53
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
Target date
$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
Lifestyle
Sales
$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
Total
$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
Target date
Exchange 4
$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
Lifestyle
$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
Total
$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
Target date
Regular 5
$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
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
Total
Redemptions
2 Net
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
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
118,466
149,974
172,417
182,707
217,731
Year
New 3
Target Date and Lifestyle Mutual Funds:1 Components of Net New Cash Flow2
TABLE 54
Data Section 5
213
$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
Target date
Exchange 6
$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
Lifestyle
214
$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
1,398,301
928,678
1,188,047
1,339,906
1,298,460
1,439,588
1,653,633
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$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
1,050,235
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
292,710
255,183
338,667
404,995
449,458
520,652
563,606
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
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
31,773
-6,064
10,382
-2,082
-21,289
-32,827
-56,008
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
-61,381
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
22,940
5,013
32,832
33,003
26,788
27,672
8,011
Hybrid
and bond
$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
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
1,894
1,891
1,832
1,775
1,737
1,725
1,728
Total
* 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
Variable Annuity Mutual Funds: Total Net Assets, Net New Cash Flow, and Number of Funds
TABLE 55
Data Section 5
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
1,178
Equity
134
147
151
176
202
250
290
323
377
404
431
413
422
437
443
443
454
449
443
452
449
451
470
493
Hybrid
and bond
Year-end
Number of funds
52
57
58
60
60
71
75
79
82
81
80
89
92
88
87
83
81
78
79
73
70
64
60
57
Money
market
215
$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
142,667
Equity
$1,808 $3,473
3,368
4,006
6,634
4,851
13,146
6,508
10,907 11,443
9,326 12,114
13,056 18,689
15,290 22,926
23,227 34,780
22,005 59,120
20,128 91,863
33,707 114,628
48,179 110,256
54,392 59,572
46,592 45,042
48,220 35,789
51,529 36,846
73,981 51,336
94,033 88,169
100,803 61,528
139,914 32,964
149,996 36,252
151,807 28,575
121,983 30,748
Hybrid
Money
and bond market
$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
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
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
$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
Hybrid
Money
and bond market
Exchange 3
$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
317,178
390,026
302,791
339,589
352,233
340,384
349,650
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
201,478
Equity
$1,465
1,920
2,348
3,410
6,830
7,234
8,041
9,905
14,964
22,276
27,483
27,510
38,908
46,632
44,382
44,472
44,350
55,875
90,589
69,739
108,693
125,456
124,982
113,305
$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
Hybrid
Money
and bond market
Regular4
2 New
$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
Total
Redemptions
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.
$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
343,455
380,332
313,301
337,760
330,926
308,491
295,398
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1 Net
Total
Year
New 2
Sales
TABLE 56
Data Section 5
$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
Equity
$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
$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
Hybrid
Money
and bond market
Exchange 5
TABLE 57
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
7,402,420
8,095,446
8,891,108
10,397,877
11,999,734
9,602,574
11,112,674
11,831,334
11,626,493
13,043,666
15,017,682
$3,934,904
3,392,973
2,643,288
3,654,851
4,344,067
4,886,648
5,833,565
6,413,884
3,637,712
4,872,915
5,596,836
5,213,796
5,940,089
7,763,869
$360,916
358,027
335,276
447,549
552,010
621,344
731,358
821,279
562,051
717,780
842,040
882,980
1,030,820
1,270,200
$823,566
938,602
1,139,838
1,259,998
1,297,669
1,356,295
1,494,503
1,678,810
1,570,574
2,206,086
2,588,536
2,838,295
3,379,234
3,265,281
$1,845,248
2,285,310
2,265,075
2,040,022
1,901,701
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
$3,727,458
3,215,887
2,491,400
3,445,259
4,071,318
4,548,440
5,398,143
5,930,880
3,341,579
4,441,518
5,059,779
4,712,687
5,351,356
6,987,960
$350,543
347,784
325,818
435,521
536,528
602,982
708,289
795,934
546,017
696,381
814,245
851,392
995,558
1,219,866
$752,625
854,870
1,046,316
1,159,327
1,193,957
1,219,892
1,338,109
1,492,994
1,402,922
1,977,298
2,281,602
2,512,561
2,981,289
2,874,632
$1,411,942
1,683,820
1,657,011
1,493,854
1,375,620
1,399,938
1,609,379
2,120,987
2,547,229
2,185,615
1,859,689
1,805,180
1,794,774
1,774,494
$207,446
177,086
151,888
209,592
272,749
338,208
435,422
483,004
296,133
431,397
537,057
501,109
588,733
775,909
$10,373
10,243
9,458
12,028
15,482
18,362
23,069
25,345
16,034
21,399
27,795
31,588
35,262
50,334
$70,941
83,732
93,522
100,671
103,712
136,403
156,394
185,816
167,652
228,788
306,934
325,734
397,945
390,649
$433,306
601,490
608,064
546,168
526,081
626,884
729,072
964,773
1,285,007
1,130,278
944,233
886,242
898,749
943,838
Total
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Individual accounts
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$6,242,568
6,102,362
5,520,545
6,533,961
7,177,421
7,771,251
9,053,920
10,340,796
7,837,748
9,300,812
10,015,314
9,881,820
11,122,977
12,856,952
Institutional accounts*
Data Section 6
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$722,066
872,551
862,932
868,459
918,025
1,119,857
1,343,957
1,658,938
1,764,826
1,811,862
1,816,020
1,744,673
1,920,689
2,160,730
* 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.
216
TABLE 58
2005
2006
2007
2008
2009
2010
2011
2013
Business
corporations
$425,213
89,357
5,795
30,400
299,660
486,614
99,804
6,153
28,446
352,211
594,460
131,646
7,452
34,123
421,239
731,409
132,961
7,928
37,124
553,396
887,922
72,194
5,426
28,514
781,789
849,573
107,653
7,745
46,539
687,635
712,382
121,540
10,599
52,989
527,254
649,441
102,388
12,180
50,458
484,415
660,627
110,166
11,824
58,066
480,570
732,593
136,856
16,909
57,680
521,148
Financial
institutions 1
$295,730
90,106
5,789
20,413
179,422
356,035
106,541
7,314
25,744
216,435
402,438
122,838
8,726
26,698
244,176
474,581
124,581
10,372
30,725
308,903
477,252
68,200
5,857
28,567
374,629
474,690
93,262
7,461
41,880
332,086
484,216
112,320
9,593
55,959
306,344
465,321
100,011
10,461
59,469
295,380
494,663
103,673
12,392
70,274
308,323
524,587
126,470
14,771
71,718
311,628
Nonprofit
organizations
$94,236
37,888
2,682
29,079
24,587
99,656
43,286
2,688
25,342
28,341
113,740
53,976
3,384
25,540
30,840
134,084
59,208
3,186
24,266
47,425
116,595
31,986
1,865
22,678
60,065
126,188
43,650
2,509
29,143
50,887
135,066
48,838
2,815
33,445
49,967
128,724
44,687
3,341
35,907
44,789
134,231
51,328
3,562
38,945
40,396
148,901
61,853
4,876
34,931
47,241
Other 2
$102,846
55,399
1,216
23,819
22,412
177,551
88,577
2,206
56,871
29,896
233,320
126,963
3,507
70,033
32,817
318,863
166,255
3,859
93,701
55,048
283,057
123,754
2,887
87,893
68,524
361,412
186,832
3,684
111,226
59,671
484,355
254,359
4,787
164,541
60,668
501,187
254,023
5,606
179,900
61,658
631,169
323,565
7,484
230,660
69,460
754,648
450,730
13,778
226,319
63,820
Data Section 6
2012
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
Equity
Hybrid
Bond
Money market
Total
$918,024
272,749
15,482
103,712
526,081
1,119,857
338,208
18,362
136,403
626,884
1,343,957
435,422
23,069
156,394
729,072
1,658,938
483,004
25,345
185,816
964,773
1,764,826
296,133
16,034
167,652
1,285,007
1,811,862
431,397
21,399
228,788
1,130,278
1,816,020
537,057
27,795
306,934
944,233
1,744,673
501,109
31,588
325,734
886,242
1,920,689
588,733
35,262
397,945
898,749
2,160,730
775,909
50,334
390,649
943,838
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.
217
TABLE 59
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
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
Business
corporations
Financial
institutions 2
Nonprofit
organizations
Other 3
$409,466
305,180
104,286
575,181
469,332
105,849
578,112
485,717
92,395
509,439
426,835
82,604
480,529
404,314
76,215
570,779
481,027
89,753
668,801
576,750
92,051
890,635
784,352
106,282
1,200,539
1,083,650
116,890
1,055,955
962,918
93,036
887,303
803,546
83,757
841,354
759,559
81,795
852,801
781,359
71,442
900,544
833,222
67,322
$201,985
137,226
64,759
300,471
235,735
64,736
303,148
247,775
55,373
266,884
217,867
49,017
271,889
223,746
48,143
317,580
266,053
51,527
382,994
318,922
64,072
504,239
434,178
70,061
720,193
644,166
76,027
631,481
568,928
62,554
485,205
431,848
53,357
450,267
398,464
51,803
444,851
400,169
44,681
485,893
439,758
46,135
$158,334
134,543
23,791
219,136
195,688
23,448
226,645
202,489
24,156
198,158
176,770
21,389
165,526
149,701
15,825
199,349
174,279
25,071
226,025
211,843
14,182
289,429
267,982
21,447
356,291
328,753
27,537
318,349
297,813
20,537
294,969
273,386
21,583
287,407
265,049
22,357
299,585
279,704
19,881
304,863
289,779
15,084
$22,987
14,951
8,037
27,975
18,212
9,764
27,673
20,205
7,468
24,873
18,535
6,339
22,936
16,274
6,662
26,146
20,393
5,753
29,134
21,925
7,209
44,878
36,668
8,210
58,429
50,428
8,001
49,321
43,459
5,862
48,875
43,830
5,045
43,622
40,057
3,564
39,472
36,464
3,008
46,465
44,221
2,245
$26,160
18,460
7,699
27,599
19,698
7,902
20,646
15,248
5,398
19,523
13,663
5,859
20,178
14,593
5,585
27,704
20,302
7,401
30,648
24,060
6,588
52,089
45,525
6,564
65,627
60,302
5,325
56,803
52,719
4,084
58,254
54,482
3,772
60,059
55,989
4,070
68,894
65,021
3,873
63,322
59,465
3,857
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.
218
TABLE 60
2007
2008
2009
2010
2011
$21,808,826
11,470,431
6,153
418,771
566,298
17,700
1,018
62,614
N/A
10,397,877
7,803,877
128,236
137,291
N/A
6,488
95,601
67,804
1,769,258
340,325
27,604
8,472
855,011
452,798
17,315
2,188,278
N/A
108,560
54,075
28,959
31,214
247
5,659
3,168
2,486
367,918
176,968
159,517
15,462
755,163
2,456,492
864,234
N/A
631,055
58,219
578,883
251,930
12,892
2,164
1,544
55,571
78,026
78,026
$26,129,767
13,421,360
6,789
615,365
698,397
24,444
1,203
75,428
N/A
11,999,734
8,934,861
138,709
149,842
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
$18,918,982
10,580,914
3,867
479,321
416,031
17,587
1,098
60,435
N/A
9,602,574
6,231,115
93,269
105,057
226
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
$22,945,327
12,578,297
4,470
783,970
565,156
34,227
1,309
70,659
5,832
11,112,674
7,545,535
99,628
106,721
256
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
2,715,234
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
$24,709,854
13,597,527
5,179
980,448
636,947
38,243
1,470
98,094
5,812
11,831,334
7,903,389
94,670
96,288
302
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
$23,795,808
13,529,258
6,808
1,008,928
753,606
33,425
1,266
92,743
5,989
11,626,493
7,220,298
81,038
81,505
291
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
2012
$26,835,850
15,138,443
9,185
1,070,998
856,504
37,900
1,484
112,201
6,505
13,043,666
8,230,059
89,125
81,651
324
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
2013
$30,049,934
17,156,409
11,179
1,018,641
940,580
39,291
1,933
120,518
6,586
15,017,682
9,374,830
90,633
91,528
504
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
3,375,828
1,624,081
479,957
N/A
107,895
774,126
285,173
34,185
3,464
4,662
62,286
142,868
142,868
219
Data Section 7
World
Americas
Argentina
Brazil
Canada
Chile
Costa Rica
Mexico
Trinidad and Tobago
United States
Europe
Austria
Belgium
Bulgaria
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 61
Data Section 7
Year-end
World
Americas
Argentina
Brazil
Canada
Chile
Costa Rica
Mexico
Trinidad and Tobago
United States
Europe
Austria
Belgium
Bulgaria
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
a
2006
2007
2008
2009
2010
2011
2012
2013
61,854
14,474
223
2,907
1,764
926
100
437
N/A
66,344
15,456
241
3,381
2,038
1,260
93
420
N/A
69,029
16,456
253
4,169
2,015
1,484
85
431
N/A
67,526
16,928
252
4,744
2,075
1,691
64
407
36
69,486
17,986
254
5,618
2,117
1,912
68
434
35
72,600
19,742
281
6,513
2,655
2,150
63
464
36
73,229
21,089
291
7,468
2,866
2,286
66
488
42
76,200
22,020
297
8,072
2,963
2,385
66
487
43
8,117
33,151
948
1,549
N/A
52
494
376
8,092
1,199
247
161
2,531
989
233
7,919
N/A
473
524
157
175
32
358
43
96
3,235
474
609
282
1,903
13,479
N/A
N/A
1,099
468
2,753
8,030
613
31
38
447
750
750
8,023
35,210
1,070
1,655
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
8,019
36,780
1,065
1,828
81
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
7,659
34,899
1,016
1,845
85
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
7,548
35,292
1,016
1,797
90
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
7,580
35,713
1,003
1,723
92
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
7,582
34,470
995
1,529
95
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
7,707
34,743
981
1,432
98
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
220
TABLE 62
a
b
2006
2007
2008
2009
2010
2011
2012
2013
$1,296,915
724,977
N/A
21,083
36,579
3,113
N/A
11,377
N/A
652,825
427,527
3,402
N/A
N/A
59
5,646
13,229
133,843
-10,472
-9,598
-42
N/A
-59,828
782
299,906
N/A
11
4,676
N/A
-1,843
97
N/A
-512
18
-3,852
7,735
11,681
N/A
32,589
135,467
N/A
N/A
3,613
11,766
99,625
25,292
-196
425
-241
-4,817
8,944
8,944
$1,533,806
1,204,499
N/A
16,880
61,286
3,282
N/A
10,154
N/A
1,112,897
101,766
-4,864
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
N/A
-5,732
6,870
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
$275,690
606,177
N/A
-32,653
17,495
-1,167
N/A
-3,418
N/A
625,920
-443,035
-18,147
N/A
-151
-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
$271,192
79,127
N/A
47,317
12,074
9,921
N/A
8,572
-150
1,393
166,653
-4,746
N/A
8
-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
$204,640
-25,593
N/A
58,316
23,797
416
171
18,382
-45
-126,630
218,363
-2,301
N/A
51
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
$102,712
169,078
N/A
49,995
37,032
-423
432
4,005
107
77,930
-122,470
-6,675
N/A
8
-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
$907,722
501,282
N/A
56,099
50,697
813
-221
6,869
292
386,733
255,867
236
N/A
16
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
$888,100
468,885
N/A
34,713
64,965
5,394
-305
7,705
-13
356,427
299,065
-2,257
N/A
129
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
100,081
N/A
-3,842
N/A
2,724
102,980
-4,876
231
-89
1,480
1,472
20,069
20,069
Year-end data are not available. Data are for January through September.
Data 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
221
Data Section 7
World
Americas
Argentina
Brazil
Canada
Chile
Costa Rica
Mexico
Trinidad and Tobago
United States
Europe
Austria
Belgium
Bulgaria
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
222
APPENDIX A
other trusts followed that not only targeted investment in America, but also
led to the introduction of the fund investing concept on U.S. shores in the late
1800s and early 1900s.
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
223
224
APPENDIX A
blocks, often 50,000 shares or more. For more information on ETFs, see
chapter 3 on page 53.
UITs are also a hybrid, with some characteristics of mutual funds and some
of closed-end funds. Like closed-end funds, UITs typically issue only a
specific, fixed number of shares, called units. Like mutual funds, the units are
redeemable, but unlike mutual funds, generally the UIT sponsor will maintain
a secondary market in the units so that redemptions do not deplete the UITs
assets. A UIT does not actively trade its investment portfolioinstead it buys
and holds a set of particular investments until a set termination date, at which
time the trust is dissolved and proceeds are paid to shareholders. For more
information on UITs, see page 18.
15%
Maryland
corporations
38%
Massachusetts
business trusts
37%
Delaware
statutory trusts
Number of funds: 10,179
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.
More than 1,000 funds, or about 10percent, 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
225
For ease of reference, this appendix refers to all directors and trustees as directors and all boards as boards of directors.
226
APPENDIX A
FIGURE A.2
Sponsor/
Investment
adviser
Administrator
Board of directors
Independent
public
accountant
Principal
underwriter
Fund
Custodian
Transfer agent
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.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
227
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.
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 establish detailed
procedures and internal controls designed to ensure compliance with all
relevant laws and regulations.
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.
228
APPENDIX A
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.
Principal Underwriters
Investors buy and redeem fund shares either directly or indirectly through
the principal underwriter, also known as the funds distributor. Principal
underwriters are registered under the Securities Exchange Act of 1934 as
broker-dealers, and, as such, are subject to strict rules governing how they
offer and sell securities to investors.
The principal underwriter contracts with the fund to purchase and then resell
fund shares to the public. A majority of both the funds independent directors
and the entire fund board must approve the contract with the principal
underwriter.
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 241.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
229
APPENDIX A
56Percent of Mutual Fund Total Net Assets Were Held in Tax-Deferred Accounts
and Tax-Exempt Funds
Percentage of assets, year-end 2013
34%
Taxable household
51%
Tax-deferred household
9%
Taxable nonhousehold
5%
Tax-exempt funds
Total mutual fund assets: $15.0 trillion
Note: Components do not add to 100percent because of rounding.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
231
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 15percent is provided for qualified
dividend income received by most taxpayers; the top rate for this income
is 20percent 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 15percent is provided for most investors long-term capital gains
(however, a 20percent top tax rate applies to certain high-income individuals
and a lower rate applies to some taxpayers).
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:
232
APPENDIX A
Investors are liable for tax on any capital gain arising from the sale of fund
shares, just as they would be if they sold a stock, bond, or other security.
Capital losses from mutual fund share sales and exchanges, like capital
losses from other investments, may be used to offset other capital gains in
the current year and thereafter. In addition, up to $3,000 of capital losses
in excess of capital gains ($1,500 for a married individual filing a separate
return) may be used to offset ordinary income.
The amount of a shareholders gain or loss on fund shares is determined by
the difference between the cost basis of the shares (generally, the purchase
priceincluding sales loadsof the shares, whether acquired with cash or
reinvested dividends) and the sale price. Many funds voluntarily have been
providing cost basis information to shareholders or computing gains and
losses for shares sold. New tax rules enacted in 2012 require all brokers and
funds to provide cost basis information to shareholders, as well as to indicate
whether any gains or losses are long-term or short-term, for fund shares
acquired on or after January 2, 2012.
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.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
233
Tax-deferred
household and
tax-exempt funds
Taxable
household
Taxable
nonhousehold
Total
2000
$76
$87
$24
$186
2001
69
71
22
162
2002
59
43
12
114
2003
57
37
103
2004
66
41
10
117
2005
84
61
20
166
2006
114
90
35
240
2007
143
119
47
309
2008
138
101
37
275
2009
108
64
15
187
2010
110
67
11
188
2011
118
78
11
208
2012
125
85
12
222
2013
119
87
11
217
234
APPENDIX A
Tax-deferred
household
Taxable
household
Taxable
nonhousehold
Total
2000
$199
$114
$13
$326
2001
51
16
69
2002
10
16
2003
14
2004
31
20
55
2005
78
43
129
2006
166
77
14
257
2007
261
130
23
414
2008
97
28
132
2009
11
15
2010
23
17
43
2011
40
29
73
2012
58
37
100
2013
144
83
11
239
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
235
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.
236
APPENDIX A
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.
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 1percent of
the funds NAV.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
237
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).
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 who trade with the ETF in large blocks, often of 50,000 shares or more. The NAV is the
price used for these large transactions. Closed-end 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.
238
APPENDIX A
Funds must price their shares at least once per 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 5percent of the portfolio.
9
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
239
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 the 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 40percent 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 higherpercentages of independent directors. As of
year-end 2012, independent directors made up three-quarters of boards in
approximately 85percent 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, for
example, 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.
240
APPENDIX A
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. Funds also are overseen
by self-regulatory organizations, such as FINRA and stock exchanges; state
securities regulators; and banking regulators (to the extent the fund is
affiliated with a bank).
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.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
241
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.
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
242
APPENDIX A
13
Temporary loans cannot exceed 5percent of the funds total net assets and must be repaid within 60 days.
HOW U.S.-REGISTERED INVESTMENT COMPANIES OPERATE AND THE CORE PRINCIPLES UNDERLYING THEIR REGULATION
243
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.
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.
15 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.
14
244
APPENDIX A
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.
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 75percent of the portfolio, no more than 5percent
may be invested in the securities of any one issuer and no investment may
represent more than 10percent 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
2013, for example, the median number of stocks held by U.S. equity funds
was 100.16
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
245
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
246
APPENDIX B
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.
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.
247
1999
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 $3.92 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.
2012
2013
248
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 aftertax 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).
GLOSSARY
249
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.
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 brokerdealer 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.
250
GLOSSARY
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.
catch-up contribution. Individuals aged 50 or older are permitted to make contributions to an
individual retirement account (IRA) or employer-sponsored retirement savings plan in excess of the
annual contribution limit. In 2013, the catch-up limit was $1,000 for IRAs, $2,500 for SIMPLE plans,
and $5,500 for 401(k) plans.
certificate of deposit (CD). A savings certificate entitling the bearer to receive interest. A CD bears
a fixed maturity date, has a specified fixed interest rate, and can be issued in any denomination.
CDs generally are issued by commercial banks and currently are insured by the Federal Deposit
Insurance Corporation (FDIC) up to a maximum of $250,000. CDs generally are offered at terms
ranging from one month to five years.
closed-end fund. A type of investment company that issues a fixed number of shares that trade
intraday on stock exchanges at market-determined prices. Investors in a closed-end fund buy or
sell shares through a broker, just as they would trade the shares of any publicly traded company.
commercial paper. Short-term, unsecured notes issued by a corporation to meet immediate
short-term needs for cash, such as the financing of accounts payable, inventories, and short-term
liabilities. Maturities typically range from overnight to 270 days. Commercial paper is usually issued
by corporations with high credit ratings and sold at a discount from face value.
commission. A fee paid to a broker or other sales agent for services related to transactions in
securities.
common stock. An investment that represents a share of ownership in a corporation.
compounding. The cumulative effect that reinvesting an investments earnings can have by
generating additional earnings of its own. Over time, compounding can produce significant growth
in the value of an investment.
conservative. An investment approach that aims to grow capital over the long term, focusing on
minimizing risk. Contrast aggressive.
contingent deferred sales load (CDSL). A fee imposed by some funds when shares are redeemed
(sold back to the fund) during the first few years of ownership. Also known as back-end load.
corporate bond. A bond issued by a corporation, rather than by a government. The credit risk for a
corporate bond is based on the ability of the issuing company to repay the bond.
Coverdell Education Savings Account (ESA). This type of account, formerly known as an
education IRA, is a tax-advantaged trust or custodial account set up to pay the qualified education
expenses of a designated beneficiary.
GLOSSARY
251
creation unit. A specified number of shares issued by an exchange-traded fund (ETF) in large
blocks, generally between 25,000 and 200,000 shares. Authorized participants that buy creation
units either keep the ETF shares that make up the creation unit or sell all or part of them on a stock
exchange.
credit quality. A term used in portfolio management to describe the creditworthiness of an issuer
of fixed-income securities and to indicate the likelihood that the issuer will be able to repay its
debt.
credit risk. The possibility that a bond issuer may not be able to pay interest or repay its debt. Also
known as default risk. See also default.
credit spread. The additional yield required of a debt security beyond that of a risk-free alternative
(such as a U.S. Treasury instrument of the same maturity).
custodian. An organization, usually a bank, that safeguards the securities and other assets of a
mutual fund.
default. A failure by an issuer to: (1) pay principal or interest when due, (2) meet nonpayment
obligations, such as reporting requirements, or (3) comply with certain covenants in the document
authorizing the issuance of a bond (an indenture).
defined benefit (DB) plan. An employer-sponsored pension plan in which the amount of future
benefits an employee will receive from the plan is defined, typically by a formula based on salary
history and years of service. The amount of contributions the employer is required to make will
depend on the investment returns experienced by the plan and the benefits promised. Contrast
defined contribution plan.
defined contribution (DC) plan. An employer-sponsored retirement plan, such as a 401(k) plan
or a 403(b) plan, in which contributions are made to individual participant accounts. Depending
on the type of DC plan, contributions may be made by the employee, the employer, or both. The
employees benefits at retirement or termination of employment are based on the employee and
employer contributions and earnings and losses on those contributions. See also 401(k) plan.
Contrast defined benefit plan.
depreciation. A decline in an investments value. Contrast appreciation.
director. Mutual fund directors oversee the management and operations of a fund organized as a
corporation and have a fiduciary duty to represent the interests of shareholders. Because a fund
has no employees, it relies on the adviser and other service providers to run the funds day-to-day
operations. Directors focus on the performance and fees of these entities under their respective
contracts, and monitor potential conflicts of interest. Fund directors have the same responsibilities
as fund trustees. See also independent director and trustee.
distribution. (1) The payment of dividends and capital gains or (2) a term used to describe a
method of selling fund shares to the public.
252
GLOSSARY
GLOSSARY
253
financial statements. The written record of the financial status of a fund or company, usually
published in the annual report. The record generally includes a balance sheet, income statement,
and other financial statements and disclosures.
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 tax-deferred
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.
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.
254
GLOSSARY
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.
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.
GLOSSARY
255
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.
investment adviser. See adviser.
investment company. A corporation, trust, or partnership that invests pooled shareholder dollars
in securities appropriate to the organizations objective. Mutual funds, closed-end funds, unit
investment trusts, and exchange-traded funds are the main types of SEC-registered investment
companies.
investment objective. The goal (e.g., current income, long-term capital growth) that a mutual fund
pursues on behalf of its investors.
investment return. The gain or loss on an investment over a certain period, expressed as a
percentage. Income and capital gains or losses are included in calculating the investment return.
investment risk. The possibility of losing some or all of the amounts invested or not gaining value
in an investment.
issuer. The company, municipality, or government agency that issues securities, such as stocks,
bonds, or money market instruments.
Keogh. A tax-favored investment vehicle covering self-employed individuals, partners, and owners
of unincorporated businesses; also called an H.R. 10 plan. These were first made available by
Congress in 1962, but today operate under rules very similar to those for retirement plans for a
corporations employees.
level load. A combination of an annual 12b-1 fee (typically 1 percent) and a contingent deferred
sales load fee (also often 1 percent) imposed by funds when shares are sold within the first year
after purchase. See also contingent deferred sales load and 12b-1 fee.
lifecycle fund. See target date fund.
lifestyle fund. Mutual funds that maintain a predetermined risk level and generally use words such
as conservative, moderate, or aggressive in their names to indicate the funds risk level. Also
known as target risk fund.
liquidity. The ability to gain ready access to invested money. Mutual funds are liquid because their
shares can be redeemed for the next computed net asset value (NAV) on any business day. In the
securities market, a security is said to be liquid if the spread between bid and ask prices is narrow
and reasonably sized trades can take place at those quotes.
load. See sales charge.
load fund. A mutual fund that imposes a sales chargeeither when fund shares are purchased
(front-end load) or redeemed (contingent deferred sales load)or a fund that charges a 12b-1 fee
greater than 0.25 percent.
256
GLOSSARY
long-term funds. A mutual fund industry designation for all funds other than money market funds.
Long-term funds are broadly divided into equity (stock), bond, and hybrid funds.
management fee. The amount paid by a mutual fund to the investment adviser for its services.
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 shortterm 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.
GLOSSARY
257
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.
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
subchapterM 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 closed-end funds are both regulated
investment companies.
258
GLOSSARY
reinvestment privilege. An option whereby shareholders may elect to use dividend and capital
gains distributions to automatically buy additional fund shares.
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 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 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 brokerdealer.
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
259
securitization. The process of aggregating similar instruments, such as loans or mortgages, into a
negotiable security, such as the creation of mortgage-backed securities.
security. A general term for stocks, bonds, mutual funds, and other investments.
semiannual report. A report a fund sends to its shareholders that discusses the funds
performance over the first six months of the fiscal year and identifies the securities in the funds
portfolio on the last business day of the first six months of the fiscal year. See also annual report.
separate account. An insurance company account that is segregated or separate from the
insurance companys general assets. Also refers to a fund managed by an investment adviser for a
single plan.
SEP IRA (simplified employee pension plan). A retirement program created in 1978 that consists
of individual retirement accounts for all eligible employees, to which the employer can contribute
according to certain rules. A fairly simple, inexpensive plan to establish and administer, a SEP IRA
can be attractive to small businesses and self-employed individuals.
series fund. A group of different mutual funds, each with its own investment objective and
policies, that is structured as a single corporation or business trust.
share. A representation of ownership in a company or investment fund. Also a synonym for stock.
share classes. Some mutual funds offer investors different types of shares known as classes (e.g.,
Class A, institutional shares). Each class will invest in the same portfolio of securities and will have
the same investment objectives and policies, but each class will have different shareholder services
and/or distribution arrangements with different fees and expenses and, therefore, different
performance results. A multiclass structure offers investors the ability to select a fee and expense
structure that is most appropriate for their investment goals (including the time that they expect to
remain invested in the fund).
shareholder. An investor who owns shares of a mutual fund or other company.
short-term fund. See money market fund.
SIMPLE IRA (savings incentive match plan for employees). A simplified tax-favored retirement
plan created in 1996 that small employers can set up for the benefit of their employees.
stable value fund. An investment fund that seeks to preserve principal and to provide consistent
returns and liquidity. Stable value funds include collective investment funds sponsored by banks or
trust companies or contracts issued by insurance companies.
Standard & Poors 500 index (S&P 500). A daily measure of stock market performance based on
500 U.S. stocks chosen for market size, liquidity, and industry group representation.
statement of additional information (SAI). The supplementary document to a prospectus that
contains more detailed information about a fund; also known as Part B of the prospectus.
stock. A share of ownership or equity in a corporation.
stock fund. See equity fund.
260
GLOSSARY
summary prospectus. A short-form prospectus that mutual funds and exchange-traded funds
(ETFs) may use with investors if the fund meets certain requirements, including making the longform prospectus and additional information available online or in paper upon request. See also
prospectus.
target date fund. A hybrid fund that follows a predetermined reallocation of risk over a working
career and into retirement for a person expecting to retire at the target date of the fund (which
is usually included in the funds name). These funds invest in a mix of asset classes and typically
rebalance their portfolios over time to become more conservative and income producing. Also
known as lifecycle fund.
target risk fund. See lifestyle fund.
total net assets. The total amount of assets, less any liabilities, a fund holds as of a certain date.
total return. A measure of a funds performance that encompasses all elements of return:
dividends, capital gains distributions, and changes in net asset value (NAV). Total return is the
change in value of an investment over a given period, assuming reinvestment of any dividends and
capital gains distributions, expressed as a percentage of the initial investment.
traditional IRA. The first type of individual retirement account, created in 1974. Individuals
may make tax-deductible or nondeductible (depending on income and other requirements)
contributions to these accounts. See also individual retirement account (IRA).
transfer agent. The internal or external organization that a mutual fund uses to prepare and
maintain records relating to shareholder accounts.
Treasury bill (T-bill). A short-term debt obligation of the U.S. government with a maturity of less
than one year. T-bills are sold in denominations of $1,000 up to a maximum purchase of $5 million
and commonly have maturities of one month (four weeks), three months (13 weeks), or six months
(26 weeks).
trustee. A member of the board of trustees of a fund organized as a business or statutory trust.
Mutual fund trustees oversee the management and operations of the fund and have a fiduciary
duty to represent the interests of shareholders. Fund trustees have the same responsibilities as
fund directors. See also director.
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. The organization that sells a mutual funds shares to broker-dealers and 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 closed-end 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.
GLOSSARY
261
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.
262
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, 84, 9495, 97, 98, 98f, 99f, 261
401(k) plans, 254
account balances, 134, 134f
asset allocation, 130, 131f, 132f
advisers (continued)
mutual fund, 227, 227f, 228, 239, 240
as purchase sources, 10910, 109f, 110f
regulation of, 223, 242
age demographics
aggressive, 249
annuities, 80, 80f, 126, 126f, 138f, 142, 142f. See also variable
annuities
appreciation, 249
Asia and Pacific region, 27f, 31, 55f, 219t, 220t, 221t
assets, 249
INDEX
263
balanced funds, 41, 130, 131f, 250. See also hybrid funds
bank notes, 202t, 203t
banks
as custodians, 244
as intermediaries, 15, 15f
bond index funds, 42, 43f, 89f, 91f, 206t, 207t, 208t, 209t
credit spreads, 31
benchmark, 250
breakpoint discounts, 94
breakpoints, 250
264
broker, 250
brokerage firms, 15, 15f, 54, 58, 138, 138f, 223, 250
bull market, 250
business corporation assets, 12, 26, 217t, 218t
C
capital appreciation equity funds
exchange redemptions, 186t
exchange sales, 184t
liquidity, 177t
net new cash flow, 182t
new sales, 183t
number of funds, 165t
number of share classes, 167t
number of shareholder accounts, 169t
redemptions, 185t
total net assets, 163t
capital gain, 250
capital gains distributions, 8, 46, 191t, 230, 23233, 235, 235f,
251
capital loss, 23233, 251
catch-up contributions, 140, 251
CDSL (contingent deferred sales load), 95, 251
certificates of deposit (CDs), 202t, 203t, 251
CFTC (Commodity Futures Trading Commission), 55
Chicago Board Options Exchange Volatility Index (VIX), 33
Class A, B, or C shares. See share classes
closed-end funds, 251
assets, 9f, 7374, 73f, 170t
bond, 70f, 7375, 74f, 75f, 78, 170t, 171t
characteristics, 72, 224
common shares, 72
creation of, 72
custody rules, 244n14
disclosure requirements, 236n
INDEX
default, 252
defined benefit (DB) plans, 122, 124, 125f, 12627, 126f, 127f,
252
dividend, 253
dividend distributions, 8, 46, 190t, 201t, 230, 23234, 234f
domestic equity ETFs, 44, 45f, 6263, 62f, 63f, 172t, 173t, 174t
custodian, 252
INDEX
265
expenses, 82, 85f, 87f, 88, 88f, 9293, 92f, 93f, 97f, 13537,
136f, 137f
domestic equity index funds, 28, 4244, 43f, 45f, 206t, 207t,
208t, 209t
domestic municipal bond closed-end funds, 74f, 75, 75f, 170t,
171t
domestic sector equity ETFs, 62, 62f, 63f, 172t, 173t, 174t
net new cash flow, 17f, 29, 29f, 3133, 32f, 33f, 178t, 179t,
182t, 210t, 211t
domestic taxable bond closed-end funds, 74f, 75, 75f, 170t, 171t
E
economic climate, 2526, 29, 3031, 46, 11112, 111f, 112f,
113f
emerging market, 35
266
INDEX
domestic equity, 44, 45f, 6263, 62f, 63f, 172t, 173t, 174t
futures-based, 55
equity, 204t
liquidity, 238
redemptions, 205t
total net assets, 9f, 52f, 55, 55f, 56f, 63f, 172t
trading, 58, 5960
government agency security holdings, 13f, 14, 47, 51, 51f, 202t,
203t
expense ratio, 253. See also mutual fund expenses and fees;
specific classification, such as hybrid funds
liquidity, 177t
F
face value, 253
fair value, 238, 253
federal funds, 253
federal government employee retirement assets, 126, 126f
Federal Reserve, 29, 30, 37, 39, 48, 75
financial advisers. See advisers
Financial Industry Regulatory Authority (FINRA), 239, 241, 253
financial institution assets, 11819, 118f, 217t, 218t
financial statements, 254
fiscal cliff concerns, 46
fixed annuities, 80f, 126f, 142f
fixed-income securities, 31, 3738, 40, 143, 149, 254
INDEX
267
Herfindahl-Hirschman Index, 28
liquidity, 177t
redemptions, 185t
net new cash flow, 17f, 24, 29, 29f, 31, 33f, 41, 42f, 178t,
180t, 182t, 210t, 211t
hybrid index funds, 42, 43f, 89f, 206t, 207t, 208t, 209t
268
domestic equity, 28, 4244, 43f, 45f, 206t, 207t, 208t, 209t
exchange sales, 208t
expenses and fees, 88f, 8991, 91f
global/international equity, 42, 43f
hybrid, 42, 43f, 89f
hybrid and bond, 206t, 207t, 208t, 209t
net new cash flow, 28, 42, 43f, 206t
new sales, 208t
INDEX
interest, 255
assets, 8, 9f
mutual fund assets in, 11, 1078, 138, 138f, 142, 142f
INDEX
269
maturity, 257
issuers, 256
K
Keoghs, 12f, 115f, 126f, 129, 129f, 138f, 147f, 148f, 151f, 256
L
large-cap domestic equity ETFs, 63, 63f
large-cap equity portfolios, 90, 93
level load, 84, 256
level-load shares, 95, 98, 98f, 99f
leverage, 7779, 77f, 78f, 79f, 24243
lifecycle funds. See target date funds
life insurance companies, 126f, 131f, 132f, 133f, 138f
lifestyle (target risk) funds, 148f, 150, 212t, 213t, 256
liquid asset portfolio holdings, 188t, 189t
liquidity, 176t, 177t, 23839, 256
load (sales charge), 84, 9699, 256
load funds, 256
load share classes, 9495
local government employee retirement plans, 126, 126f
long-term bond funds, 47
long-term bond yields, 30
long-term capital gains, 232, 233
long-term interest rates, 3031, 3738, 47, 62, 75
long-term mutual funds, 257. See also bond funds; equity funds;
hybrid funds; mutual fund entries
annual redemption rates, 187t
capital gains paid and reinvested, 191t
demand for, 27, 27f, 29
dividends paid and reinvested, 190t
exchange redemptions, 186t
exchange sales, 184t
expense ratios, 8688, 86f, 9394, 93f
household investments in, 107
liquid assets and liquidity ratio, 176t, 177t
market share, 98, 98f
net new cash flow, 8, 29, 29f, 31, 33f, 34f, 98, 98f, 178t, 182t
new sales, 183t
portfolio holdings and share of total net assets, 188t, 189t
redemptions, 185t, 187t
retirement assets, 142, 147, 147f, 148f
total net assets, 99, 99f, 188t
total portfolio, common stock, and other securities:
purchases, sales, net purchases, 192t
long-term U.S. government bonds, 188t, 189t
270
INDEX
ongoing expenses, 84
redemptions, 185t
redemptions, 161t
history, 22223
valuation, 23839
mutual fund complexes, 15, 15f, 17f, 2728, 28f. See also
investment companies
mutual fund expenses and fees
age and income of, 40, 40f, 1046, 104f, 105f, 106f
asset-based, 9798
number of accounts, 87
INDEX
271
portfolio, 258
risk tolerance of, 3334, 34f, 3940, 39f, 40f, 69, 69f, 69f,
112, 112f, 113f
mutual fund trends. See also mutual fund expenses and fees
prime money market funds, 14, 46f, 51, 51f, 196t, 197t, 198t,
199t, 203t
overview, 25
N
national municipal bond funds
redeem, 258
liquidity, 177t
redemptions, 185t
legislation, 223
liquidity, 23839
O
open-end investment companies, 224, 257. See also mutual
fund entries
operating expenses, 257
organizational structure of mutual funds, 22529, 225f, 227f
passively managed mutual funds, 28, 89, 224. See also index
mutual funds
272
INDEX
retirement mutual funds. See also 401(k) plans; defined contribution (DC) plans; employer-sponsored retirement
plans; individual retirement accounts; specific
classification, such as bond funds
assets, 14748, 147f, 148f
bond funds, 210t, 211t
equity funds, 148f, 149, 210t, 211t
exchange redemptions, 211t
exchange sales, 211t
fees, 96
household accounts, 11, 11f, 12f, 1078, 108f, 109f, 110f,
12728, 127f, 128f, 147, 147f
hybrid funds, 210t, 211t
money market funds, 147, 147f, 148f, 210t, 211t
net new cash flow, 210t, 211t
new sales, 211t
number of funds, 210t
number of share classes, 210t
redemptions, 211t
target date funds in, 148f, 150
total net assets, 210t
retirement plans. See also defined benefit plans; defined
contribution plans; employer-sponsored retirement
plans; individual retirement accounts
return, 259
securitization, 260
rights of accumulation, 94
security, 260
risk, 259
risk tolerance, 3334, 34f, 3940, 39f, 40f, 69, 69f, 112, 112f,
113f, 259
assets, 138
assets, 138
share, 260
S
SAI (statement of additional information), 23637, 260
sales charge (load), 84, 9699, 259
Sarbanes-Oxley Act, 24142
INDEX
273
assets, 138
T
target date (lifecycle) funds, 261
in 401(k) plans, 130, 131f, 13233, 133f
by account type, 151f
bond fund outflows and, 38, 4041
characteristics, 4041, 13233, 150
exchange redemptions, 213t
exchange sales, 213t
expenses and fees, 88, 88f, 9293, 92f
in IRAs, 143, 143f
net new cash flow, 212t, 213t
new sales, 213t
number of funds, 212t
number of share classes, 212t
rebalancing features, 41
redemptions, 213t
retirement assets, 148f, 150
total net assets, 212t
target risk (lifestyle) funds. See lifestyle (target risk) funds
taxable bond closed-end funds, 74f, 75, 75f, 170t, 171t
taxable bond funds
demand for, 38
expense ratios, 92f
number of funds, 164t
number of share classes, 166t
number of shareholder accounts, 168t
total net assets, 162t
taxable money market funds
asset composition, 202t, 203t
dividends paid and reinvested, 201t
government, 196t, 197t, 198t, 199t, 202t
institutional, 198t, 199t, 218t
net new cash flow, 48f, 199t
number of funds, 165t, 197t
number of share classes, 166t, 167t, 197t
number of shareholder accounts, 168t, 169t, 196t
prime, 196t, 197t, 198t, 199t, 203t
retail, 48f, 198t, 199t
total net assets, 162t, 163t, 164t, 196t, 198t, 218t
taxable mutual funds, 231, 231f
tax-deferred mutual funds, 231, 231f, 234, 234f
tax-exempt bond funds, 3839, 233
274
INDEX
tax-exempt mutual funds, 13f, 14, 231, 231f, 233, 234, 234f
tax features of mutual funds
U.S. government agency issues, 13f, 14, 47, 51, 51f, 202t, 203t
U.S. mutual fund assets, 6, 25, 27, 27f. See also mutual fund
industry data
V
valuation process of funds, 23839
liquidity, 177t
household investments in, 11f, 67, 67f, 80, 80f, 118, 118f
redemptions, 185t
Treasury bonds, 38
INDEX
275
liquidity, 177t
liquidity, 177t
redemptions, 185t
world equity index funds, 42, 43f, 206t, 207t, 208t, 209t
redemptions, 185t
Y
yield, 262
yield curve, 262
276
INDEX