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Date : Aug 24, 2018
Survey of Foreign Liabilities and Assets of Mutual Fund Companies – 2017-18

Today, the Reserve Bank released the results of the 2017-18 round of the Survey of Foreign Liabilities and Assets of Mutual Fund (MF) Companies on its website. The survey covers 42 Indian MF companies and their Asset Management Companies (AMCs), which held/acquired foreign assets and/or liabilities during the reference year 2017-18 and/or in the preceding year (See Annex for list of companies).

Highlights:

I. Mutual Fund Companies:

  • Foreign assets of MF companies declined by 11.7 per cent; however, their foreign liabilities increased by 19.3 per cent, with their net foreign liabilities at ₹ 824.3 billion (US$ 12.7 billion) in March 2018 (Table 1).

  • UAE, UK, Singapore, USA, Mauritius and Hong Kong together accounted for 49 per cent of the MF units held by non-residents in March 2018; units (at face value) held in Mauritius and Singapore declined (by 11 per cent each), coinciding with the signing of the Protocol to amend the ‘India-Mauritius Double Taxation Avoidance Agreement (DTAA)’ in 2016-17 and ‘India-Singapore DTAA’ effective since April 2017 (Table 2).

  • Luxembourg and USA remained the major overseas investment destinations for MFs companies with Mauritius regaining importance as a preferred overseas investment destination (Table 4).

II. Asset Management Companies:

  • Net foreign liabilities of AMCs associated with MFs increased by 132.7 per cent to ₹121.0 billion (US$ 1.9 billion) in March 2018 over the previous year; foreign liabilities of AMCs were largely owed to non-residents in Japan (increased by 698 per cent), Mauritius and UK whereas Guernsey was the main destination of their relatively small overseas assets (Tables 5, 6 & 7).

  • The reinvested earnings of foreign direct investors in the AMCs (estimated from their share in the difference between a company’s net profit and distributed dividends) stood at ₹ 9.7 billion in 2017-18.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/460


Table 1: Mutual Fund Companies – Foreign Liabilities and Assets
Item End-March 2017 End-March 2018 % Growth
(₹ terms)
₹ million US$ million ₹ million US$ million
(1) (2) (3) (4) (5) (6)
Foreign Assets 38,703 597 34,172 525 -11.7
  Of which:          
        Equity Securities 38,554 595 33,918 521 -12.0
        Debt Securities 0 0 0 0  
        Other Foreign Asset 149 2 254 4 70.5
Foreign Liabilities 719,808 11,101 858,523
13,199
19.3
  Of which:          
        Market Value of units 718,427 11,080 856,702 13,171 19.2
        Other Foreign Liabilities 1,381 21 1,821 28 31.9
Net Liabilities 681,105 10,504 824,351 12,674 21.0
Face Value of Units 269,803 4,161 318,684 4,900 18.1
Notes: 1. The amount in US $ terms is arrived at by using the RBI reference rate (end-March).
2. Liabilities / Assets are valued at market prices unless stated otherwise.
3. Sum of constituent items may not add up to total due to rounding off.
4. These are also applicable for the remaining tables.

Table 2: Foreign Liabilities in Units of Mutual Fund Companies at Face Value – Major Countries
Amount in ₹ million
Country End-March 2017 End-March 2018 % Share in 2018 Annual Variation
Absolute per cent
(1) (2) (3) (4) (5) (6)
United Arab Emirates 48,470 58,592 18.4 10,122 20.9
United Kingdom 25,003 30,511 9.6 5,508 22.0
Singapore 28,215 24,985 7.8 -3,230 -11.5
United States of America 19,362 23,992 7.5 4,630 23.9
Mauritius 10,482 9,315 2.9 -1,167 -11.1
Hong Kong 6,840 8,942 2.8 2,102 30.7
Oman 4,818 6,331 2.0 1,513 31.4
Saudi Arabia 3,816 4,636 1.5 820 21.5
Canada 3,330 4,263 1.3 933 28.0
Kuwait 2,777 3,755 1.2 978 35.2
Others* 116,690 143,362 45.0 26,672 22.9
Total 269,803 318,684 100.0 48,881 18.1
*Others also include those non-resident Indians (NRIs), who use their Indian permanent address

Table 3: Foreign Liabilities in Units of Mutual Fund Companies at Market Value – Major Countries
Amount in ₹ million
Country End-March 2017 End-March 2018 % Share in 2018 Annual Variation
Absolute per cent
(1) (2) (3) (4) (5) (6)
United Arab Emirates 113,436 143,149 16.7 29,713 26.2
United States of America 65,349 77,574 9.1 12,225 18.7
United Kingdom 57,690 70,717 8.3 13,027 22.6
Singapore 72,248 68,970 8.0 -3,278 -4.5
Mauritius 50,409 56,492 6.6 6,083 12.1
Canada 11,945 20,310 2.4 8,365 70.0
Hong Kong 15,117 18,368 2.1 3,251 21.5
Oman 12,642 16,833 2.0 4,191 33.2
Saudi Arabia 9,812 12,292 1.4 2,480 25.3
Kuwait 7,519 10,705 1.2 3,186 42.4
Others* 302,260 361,292 42.2 59,032 19.5
Total 718,427 856,702 100.0 138,275 19.2
*Others also include those non-resident Indians (NRIs), who use their Indian permanent address

Table 4: Equity Securities held Abroad by Mutual Fund Companies – Major Countries
Amount in ₹ million
Country End-March 2017 End-March 2018 % Share in 2018 Variation
Absolute per cent
(1) (2) (3) (4) (5) (6)
Luxembourg 16,614 14,308 42.2 -2,306 -13.9
United States Of America 17,013 11,737 34.6 -5,276 -31.0
Mauritius 101 2,280 6.7 2,179 2157.4
Cayman Islands 1,077 1,513 4.5 436 40.5
Switzerland 674 676 2.0 2 0.3
Japan 253 644 1.9 391 154.5
Korea, Republic Of 586 629 1.8 43 7.3
Taiwan 503 372 1.1 -131 -26.0
United Kingdom 86 369 1.1 283 329.1
Ireland 286 304 0.9 18 6.3
Others 1,361 1,086 3.2 -275 -20.2
Total 38,554 33,918 100.0 -4,636 -12.0

Table 5: Foreign Liabilities and Assets of Asset Management Companies
Item End-March 2017 End-March 2018 % Growth
(₹ terms)
₹ million US$ million ₹million US$ million
(1) (2) (3) (4) (5) (6)
Foreign Liabilities 56,602 873 126,747 1,950 123.9
Foreign Assets 4,490 69 5,478 84 22.0
Net Liabilities 52,112 804 1,21,269 1,866 132.7

Table 6: Foreign Liabilities of Asset Management Companies – Major Countries
Amount in ₹ million
  End-March Variation
Country 2017 2018 % Share in 2018 Absolute per cent
(1) (2) (3) (4) (5) (6)
Equity and Other Capital
Japan 8,114 64,746 51.1 56,632 698.0
Mauritius 15,529 22,089 17.4 6,561 42.2
United Kingdom 14,000 17,835 14.1 3,835 27.4
Senegal 4,856 5,256 4.1 399 8.2
Singapore 3,176 4,105 3.2 929 29.3
Hong Kong 3,535 3,823 3.0 288 8.1
France 2,853 3,766 3.0 913 32.0
United States of America 2,048 2,084 1.6 37 1.8
Korea, Republic of 1,399 1,783 1.4 385 27.4
Netherlands 700 781 0.6 82 11.6
Italy 269 288 0.2 19 7.1
Other Liability
Other Liability 123 191 0.2 68 55.3
Total 56,602 126,747 100.0 70,145 123.9

Table 7: Foreign Assets of Asset Management Companies – Major Countries
Amount in ₹ million
  End-March Variation
Country 2017 2018 % Share in 2018 Absolute per cent
(1) (2) (3) (4) (5) (6)
Equity & other Capital
Guernsey 2,956 3,625 66.2 669 22.6
Singapore 383 479 8.7 96 25.1
Mauritius 265 350 6.4 85 32.1
United Arab Emirates 46 48 0.9 2 4.3
Sri Lanka 4 4 0.1 0 0.0
Other Assets
Others 836 972 17.7 136 16.3
Total 4,490 5,478 100.0 988 22.0

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