Mapping global fund growth | 2013 update

Time for the annual update of our charts on the fund industry. . . Here’s what global fund growth looked like 2010 through 2012:

Growth – except in Europe, India

In total, global fund assets grew more than 17% over the 3-year period – but growth was far from the norm. In fact, many countries experienced asset declines, as the illustration below shows.

In this map, countries with the highest percentage growth in assets are shown in red. Those with the next-highest growth rates are dark orange. Growth rates continue to decline as colors move from light orange to yellow and then to green. Countries in greenish colors saw declines in assets. No data was available for countries in gray – most have very small fund markets. (Click on the map if you want to take a closer look.)

Many European countries had negative growth over the 3 years. In fact, the sharpest declines were in Greece and Portugal — two of the countries most affected by the Eurocrisis — where assets were cut in half!

India also saw assets fall — largely as result of a steep rise in interest rates. More stringent regulation may also have played a role, by making mutual funds less attractive to intermediaries.

Percentage Growth in Fund Assets | 2010 – 2012

3 year pct growth

Source:Investment Company Institute, 2013 Investment Company Fact Book

Fund asset growth generally magnified GDP growth. . .

Changes in fund assets magnified changes in GDP, as shown in this graph, which plots 3-year fund asset growth against 3-year GDP growth. (Again, click to see details.)

In the Philippines, for example, fund assets grew by 140%, while the economy gained “just” 49%. On the negative side, Greece’s -52% drop in fund assets was higher than the -23% decline in GDP.

2012 Fund Growth by Country

. . . except in Asia and Ireland

There were exceptions to the general rule:

  • Fund industry growth significantly lagged economic growth in the emerging Asian nations (the smaller red circles in the chart above.) For example, the 15% growth of fund assets in China seems almost anemic when compared to the 65% gain in the economy.
  • Ireland saw substantial gains in fund assets despite a significant economic recession. Much of the asset gains came from outside Ireland, as the country continues to promote itself as a fund domicile.

The largest markets did best

The largest fund markets tended to grow the fastest, as this map below shows. It uses the same color scheme as the previous map but is based on changes in absolute dollar terms rather than percentages.

Compare it to the map above, and you’ll see a lot of similarities — but you’ll also get a better sense of the importance to the fund industry of 4 countries: the United States, Australia, Canada and Brazil.

Dollar Growth in Fund Assets | 2010 – 2012

3 year dollar growth

Source:Investment Company Institute, 2013 Investment Company Fact Book

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