iFund – Understanding the trends in Worldwide Open-End Funds in 5 Graphs

2019-05-08 07:33
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In spite of market turbulence during last 10 years, the total net assets of the funds remain in an uptrend.

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As of the end of 2018, the total number of worldwide regulated open-end funds is 118,978, and its total net assets is 46.7 trillion USD. In terms of fund types, money market funds, bond funds, equity fund and mixed/other funds accounts for 13%, 22%, 43% and 23% of net assets. In spite of market turbulence during last 10 years, the total net assets of the funds remain in an uptrend.

Figure 1: Total number, total net assets (trillions USD) and of worldwide regulated open-end funds by type of funds

Source: ICI 2019 Investment Company Fact Book

In 2018, 47% of the regulated funds are domiciled in Europe. In terms of type of fund, 46% are mixed/other funds, 34% are equity funds (see figure2).

Figure 2: Worldwide regulated open-end funds (percentage of funds by region or type of fund, year-end 2018)

Source: ICI 2019 Investment Company Fact Book

For the last 10 years, the net sales of regulated open funds (excluding money market funds) in Asia-Pacific increase, while there is a downturn in net sales in US region.

Figure 3: Net Sales of regulated open-end funds in different regions (excluding money market funds, Billions USD)

Source: ICI 2019 Investment Company Fact Book

In US market, the proportion of index funds are getting higher and higher, growing from 18% in 2008 to 36% in 2018. Meanwhile, the market share of actively managed mutual funds and ETFs drops from 82% to 64% (see figure 4).

Figure 4: Index funds’ market share in US fund market

Source: ICI 2019 Investment Company Fact Book

Although the market share of index funds has grown rapidly, index domestic equity mutual funds and ETFs remain a relatively small part of US stock markets, holding only 13 percent of the value of US stocks.

Figure 5: Index funds’ market share in US stock market (in terms of market capitalization)

Source: ICI 2019 Investment Company Fact Book

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