The Reserve Bank of India today released, on its website, the data related to the results of Survey of India’s Foreign Liabilities and Assets for the Mutual Fund Companies – 2013-14. These data are compiled from the annual survey on India’s foreign liabilities and assets (FLA) of the mutual fund companies (MFs) and Asset Management Companies (AMCs) covering 47 companies (Annex) which held/acquired foreign assets and/or liabilities during current and/or previous years. For the reference period March 2013-14, information was collected under Schedule 4 from MFs regarding units issued to non-residents, unpaid dividend, redemption of units issued to non-residents and overseas investment by MFs. Data on stock of external assets and liabilities of AMCs were collected through FLA return. Highlights: I. Mutual Fund Companies • Foreign Liabilities: Foreign liabilities of MFs with two broad components (i) units issued to non-residents and (ii) other foreign liabilities arising out of unpaid income/dividend to non-residents, sale proceeds pending repatriation, etc., increased by ` 28.8 billion to ` 411.5 billion (US$ 6.8 billion) in March 2014. Units issued to non-residents, the major component of foreign liabilities, at face value, declined from ` 217.4 billion in March 2013 to ` 213.1 billion in March 2014 but increased from ` 382.1 billion to ` 410.2 billion at market value over the same period (Table 1 & 2). • Foreign Assets: Foreign assets of MFs increased from ` 33.4 billion in March 2013 to ` 43.3 billion as at end-March 2014, and as a consequence, net liabilities of MFs increased by ` 18.9 billion to ` 368.2 billion (US$ 6.1 billion) in March 2014. Equity securities remained the major component of MFs’ foreign assets which increased from ` 32.1 billion in March 2013 to ` 41.8 billion in March 2014. No MF company invested in debt securities abroad (Table 3). • Country-wise Foreign Liabilities: UAE, USA, UK, Mauritius, Singapore, Canada and Hong Kong were the major countries which together accounted for nearly 44 per cent of units issued to non-residents at market value in March 2014 (Table 4 & 5). • Country-wise Foreign Assets: Luxembourg (with a share of 70.2 per cent in March 2014) was the major country with respect to foreign assets of MFs, followed by USA (16.9 per cent) and Hong Kong (3.8 per cent) (Table 6). II. Asset Management Companies • Foreign Liabilities and Assets: Foreign liabilities of AMCs associated with the MFs increased by ` 4.2 billion to ` 35.0 billion in March 2014. Foreign assets of AMCs increased marginally from ` 1.7 billion in March 2013 to ` 1.8 billion in March 2014. As a consequence, net liabilities increased from ` 29.2 billion in March 2013 to ` 33.2 billion in March 2014 (Table 7). • Country-wise Foreign Liabilities and Assets: Mauritius accounted for the maximum share of foreign liabilities (30.9 per cent), followed by UK (23.4 per cent) and Japan (9.9 per cent). Guernsey and Singapore together accounted for nearly 63 per cent of total foreign assets of AMCs in March 2014 (Table 8 & 9). • Reinvested Earnings: Reinvested earnings of the AMCs, which are estimated as the difference (positive or negative) between company’s net profit/loss and its distributed dividends, increased from ` 3.2 billion in 2012-13 to ` 5.1 billion in 2013-14. The data for the previous survey round covering the year 2012-13 was released on the RBI website on February 10, 2014. Sangeeta Das
Director Press Release : 2014-2015/1366
Table 1: Mutual Fund Companies – Foreign Liabilities and Assets | Mutual Fund Company | End-March 2013 | End-March 2014 | Annual Growth in ` (%) | ` million | US$ million* | ` million | US$ million* | (1) | (2) | (3) | (4) | (5) | (6) | Foreign Liabilities | 3,82,702 | 7,036 | 4,11,497 | 6,847 | 7.5 | Foreign Assets | 33,429 | 615 | 43,339 | 721 | 29.6 | Net Liabilities | 3,49,273 | 6,421 | 3,68,158 | 6,126 | 5.4 | * Using end-march Rupee/ Dollar exchange rate (www.rbi.org.in). This footnote is also applicable for remaining tables. |
Table 2: Mutual Fund Companies – Non-Resident Holding of Foreign Liabilities | Non-resident holding | End-March 2013 | End-March 2014 | Annual Growth in ` (%) | ` million | US$ million* | ` million | US$ million* | (1) | (2) | (3) | (4) | (5) | (6) | Face value of units | 2,17,368 | 3,997 | 2,13,098 | 3,546 | -2.0 | Market Value of units | 3,82,134 | 7,026 | 4,10,234 | 6,826 | 7.4 | Other foreign liabilities | 568 | 10 | 1,263 | 21 | 122.4 |
Table 3: Mutual Fund Companies – Foreign Assets | Type of Assets | End-March 2013 | End-March 2014 | Annual Growth in ` (%) | ` million | US$ million* | ` million | US$ million* | (1) | (2) | (3) | (4) | (5) | (6) | Equity Securities | 32,138 | 591 | 41,766 | 695 | 30.0 | Debt Securities | 0 | 0 | 0 | 0 | 0 | Other Foreign Assets | 1,291 | 24 | 1,573 | 26 | 21.8 |
Table 4: Foreign Liabilities of Mutual Fund Companies at Face Value: Country-wise Share | Per cent | Country | End-March | 2013 | 2014 | (1) | (2) | (3) | United Arab emirates | 13.4 | 14.5 | United States of America | 8.0 | 8.1 | United kingdom | 6.3 | 7.7 | Singapore | 3.4 | 6.9 | Hong Kong | 1.5 | 2.0 | Canada | 1.4 | 1.4 | Oman, Sultanate of | 1.0 | 1.1 | Mauritius | 1.7 | 1.0 | Saudi Arabia | 0.7 | 0.9 | Kuwait | 0.4 | 0.6 | Others** | 62.2 | 55.8 | Total | 100.0 | 100.0 | ** Includes instances where the investing countries were not specified. |
Table 5: Foreign Liabilities of Mutual Fund Companies at Market Value: Country-wise Share | | Per cent | Country | End-March | 2013 | 2014 | (1) | (2) | (3) | United Arab Emirates | 11.9 | 12.6 | United States of America | 8.8 | 9.1 | United kingdom | 5.8 | 6.7 | Mauritius | 4.4 | 6.1 | Singapore | 2.9 | 5.7 | Canada | 2.0 | 2.0 | Hong Kong | 1.3 | 1.6 | Oman, Sultanate of | 0.9 | 1.1 | Saudi Arabia | 0.7 | 0.8 | Kuwait | 0.4 | 0.6 | Others** | 60.9 | 53.7 | Total | 100.0 | 100.0 | ** Includes instances where the investing countries were not specified. |
Table 6: Mutual Fund Companies – Country-wise Equity Securities held Abroad | Amount in ` million at market value | Country | End-March | Variation | 2013 | 2014 | % Share in Total (2014) | Absolute | Per cent | (1) | (2) | (3) | (4) | (5) | (6) | Luxembourg | 19,412 | 29,307 | 70.2 | 9,895 | 51.0 | United States of America | 4,806 | 7,084 | 16.9 | 2278 | 47.4 | Hong Kong | 1,761 | 1,593 | 3.8 | -168 | -9.5 | Switzerland | 1,187 | 945 | 2.3 | -242 | -20.4 | Korea, Republic of | 584 | 651 | 1.6 | 67 | 11.5 | Ireland | 523 | 615 | 1.5 | 92 | 17.6 | Taiwan | 725 | 511 | 1.2 | -214 | -29.5 | United Kingdom | 61 | 253 | 0.6 | 192 | 314.8 | Singapore | 153 | 119 | 0.3 | -34 | -22.2 | Thailand | 122 | 86 | 0.2 | -36 | -29.5 | Others | 2,804 | 602 | 1.4 | -2,202 | -78.5 | Total | 32,138 | 41,766 | 100 | 9,628 | 30.0 |
Table 7: Asset Management Companies – Foreign Liabilities and Assets | Asset Management Company | End-March 2013 | End-March 2014 | Annual Growth in ` (%) | ` million | US$ million* | ` million | US$ million* | (1) | (2) | (3) | (4) | (5) | (6) | Foreign Liabilities | 30,882 | 568 | 35,039 | 583 | 13.5 | Foreign Assets | 1,727 | 32 | 1,848 | 31 | 7.0 | Net Liabilities | 29,155 | 536 | 33,191 | 552 | 13.8 |
Table 8: Asset Management Companies – Country-wise Distribution of Foreign Liabilities | Amount in ` million at market value | Country | End-March | Variation | 2013 | 2014 | % Share in Total (2014) | Absolute | Per cent | (1) | (2) | (3) | (4) | (5) | (6) | Mauritius | 9331 | 10810 | 30.9 | 1479 | 15.9 | United Kingdom | 6488 | 8198 | 23.4 | 1710 | 26.4 | Japan | 3173 | 3456 | 9.9 | 283 | 8.9 | Canada | 1905 | 2422 | 6.9 | 517 | 27.1 | Singapore | 2114 | 2376 | 6.8 | 262 | 12.4 | Hong Kong | 2115 | 1892 | 5.4 | -223 | -10.5 | United States of America | 1618 | 1542 | 4.4 | -76 | -4.7 | Korea, Republic of | 1197 | 1246 | 3.6 | 49 | 4.1 | France | 1280 | 1216 | 3.5 | -64 | -5.0 | Cayman Islands | 540 | 588 | 1.7 | 48 | 8.9 | Netherlands | 544 | 584 | 1.7 | 40 | 7.4 | Others | 577 | 709 | 2.0 | 132 | 22.9 | Total | 30882 | 35039 | 100.0 | 4,157 | 13.5 |
Table 9: Asset Management Companies– Country-wise Distribution of Foreign Assets | Amount in ` million at market value | Country | End-March | Variation | 2013 | 2014 | % Share in Total (2014) | Absolute | Per cent | (1) | (2) | (3) | (4) | (5) | (6) | Guernsey | 639 | 757 | 41.0 | 118 | 18.5 | Singapore | 517 | 400 | 21.6 | -117 | -22.6 | Mauritius | 189 | 190 | 10.3 | 1 | 0.5 | United Arab Emirates | 61 | 60 | 3.2 | -1 | -1.6 | United States of America | 24 | 35 | 1.9 | 11 | 45.8 | United Kingdom | 9 | 6 | 0.3 | -3 | -33.3 | Sri Lanka | 1 | 1 | 0.1 | 0 | 0.0 | Malaysia | 71 | 0 | 0.0 | -71 | -100.0 | Others | 216 | 399 | 21.6 | 183 | 84.7 | Total | 1727 | 1848 | 100.0 | 121 | 7.0 | |