The Reserve Bank of India today released, on its website, the data related to results of the 2014-15 round of the Survey of Foreign Liabilities and Assets of the Mutual Fund Companies.

These data are compiled from the annual survey of India’s foreign liabilities and assets (FLA) of the mutual fund companies (MFs) and Asset Management Companies (AMCs) covering 44 companies (Annex) which held/acquired foreign assets and/or liabilities during current and/or previous years. For the reference period April-March 2014-15, information was collected under Schedule 4 from MFs regarding units issued to non-residents, unpaid dividend, redemption of units issued to non-residents and MFs’ overseas investment. Data on stock of external assets and liabilities of AMCs were collected through the FLA return.

Highlights:

I. Mutual Fund Companies

• Foreign Liabilities: Foreign liabilities of MFs increased by ₹ 155.4 billion during 2014-15 to ₹ 565.9 billion (US$ 9.0 billion) in March 2015. Units issued to non-residents, which had major share within these liabilities, increased from ₹ 409.2 billion in March 2014 to ₹ 565.4 billion in March 2015 at market value, though the increase was much lower from ₹212.5 billion to ₹ 240.1 billion, at face value, over the same period. Other foreign liabilities arising out of unpaid income/ dividend to non-residents, sale proceeds pending repatriation, etc., declined from ₹1.3 billion in March 2014 to ₹ 0.5 billion in March 2015 (Table 1 & 2).

• Foreign Assets: Contrary to the movements in foreign liabilities of MFs, their foreign assets declined from ₹ 43.5 billion in March 2014 to ₹ 40.7 billion in March 2015, and as a consequence, net liabilities of MFs increased by ₹158.2 billion during 2014-15 to ₹ 525.2 billion (US$ 8.4 billion) in March 2015. Equity securities, which remained the dominant component of foreign assets of MFs, declined marginally from ₹ 42.0 billion to ₹ 40.4 billion over this period (Table 3).

• Country-wise Foreign Liabilities: Mauritius, UAE UK, USA and Singapore together accounted for 45.6 per cent share at market value and 41.9 per cent share at face value, in the total units issued to non-residents in March 2015 (Table 4 & 5).

• Country-wise Foreign Assets: Luxembourg (with share of 59.6 per cent in March 2015) continued to be the major overseas investment destination (equity securities held abroad) of MFs, followed by USA (26.6 per cent share) (Table 6).

II. Asset Management Companies

• Foreign Liabilities and Assets: Foreign liabilities of AMCs associated with the MFs increased by ₹ 4.9 billion during 2014-15 to ₹ 38.1 billion in March 2015. Foreign assets of AMCs increased marginally from ₹ 1.8 billion during the year to ₹ 2.2 billion in March 2015. As a consequence, net liabilities increased from ₹ 31.4 billion to ₹ 35.9 billion over the period (Table 7).

• Country-wise Foreign Liabilities and Assets: UK accounted for the maximum share in foreign liabilities of MFs (26.4 per cent), followed by Mauritius (24.1 per cent) and Japan (12.1 per cent). Guernsey and Singapore together accounted for nearly 54 per cent of total foreign assets of AMCs in March 2014 (Table 8 & 9).

• Reinvested Earnings: Reinvested earnings of the AMCs, which is estimated as the difference (positive or negative) between company’s net profit/loss and its distributed dividends, moderated from ₹ 5.1 billion in 2013-14 to ₹ 3.4 billion in 2014-15.

The data for the previous survey round covering the year 2013-14 was released on the RBI website on December 31, 2014.

Sangeeta Das
Director

Press Release : 2015-2016/370