Reserve Bank of India : Survey of India’s Foreign Liabilities and Assets for the Mutual Fund Companies – 2011-12

	Date : 28 Jan 2013
Survey of India's Foreign Liabilities and Assets for the Mutual Fund Companies - 2011-12
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 - 2011-12. The data compiled are based on annual survey on India's foreign liabilities and assets (FLA) of the mutual fund companies (MFs) and Asset Management Companies (AMCs) covering 44 companies which held/acquired foreign assets and/or liabilities (list in Annex). For the reference period March 2011-12, information was collected under Schedule 4 for MFs regarding units issued to non-residents, unpaid dividend, redemption of units issued to non-residents and MFs' overseas investment and through FLA return for stock of external assets and liabilities of AMCs. Highlights: I. Mutual Fund Companies 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 sharply from `214.2 billion in March 2011 to `304.7 billion in March 2012. On the other hand, foreign assets of MFs declined from `47.3 billion in March 2011 to `38.3 billion as at end-March 2012, as a consequence, their net liabilities increased from `166.9 billion in March 2011 to `266.4 billion in March 2012. Units issued to non-residents constituted the dominant component (99.8 per cent) of foreign liabilities of MFs in March 2012. The liabilities based on face value increased sharply from `213.4 billion in March 2011 to `304.0 billion in March 2012 whereas the liabilities based on market value increased from `405.4 billion in March 2011 to `504.0 billion in March 2012. The share of United Arab Emirates (UAE) of the total foreign liabilities in March 2012 increased substantially, whereas the shares of USA, Singapore and Oman, increased marginally during the reference period. Equity investments held in overseas assets of MFs declined from `47.1 billion in March 2011 to `37.0 billion in March 2012. Overseas mutual fund units had a nominal share in portfolio assets; further, no MF invested in debt securities abroad. Luxembourg (with share of 55.6 per cent in March 2012) accounted for the major share of the foreign portfolio assets of MFs. This was followed by the USA (15.8 per cent) and Hong Kong (6.5 per cent). II. Asset Management Companies Foreign liabilities of AMCs associated with the MFs increased from `25.0 billion in March 2011 to `28.5 billion by March 2012. On the other hand, their foreign assets declined from `1.7 billion in March 2011 to `1.4 billion in March 2012. As such, their net liabilities increased from `23.3 billion in March 2011 to `27.2 billion in March 2012. Mauritius accounted for the maximum share of foreign liabilities (34.4 per cent), followed by UK (19.6 per cent), Japan (7.1 per cent) and USA (6.9 per cent). Singapore and Guernsey accounted for more than two third of the foreign assets portfolio of AMCs in March 2012. The share of the Guernsey's in the foreign assets increased sharply from 16.6 per cent in March 2011 to 34.5 per cent in March 2012, whereas the share of the Mauritius declined from 15.1 per cent in March 2011 to 9.0 per cent in March 2012. Reinvested earnings of the AMCs, which is estimated as the difference (positive or negative) between company's net profit/loss and its distributed dividends, declined from `3.2 billion in 2010-11 to `2.9 billion in 2011-12 reflecting the decreased profit earnings by the AMCs. Table 1: Mutual Fund Companies - Foreign Liabilities and Assets (`million) Mutual Fund Company End-March Variation 2011 2012 Absolute Per cent 1 2 3 4 5 Foreign Liability* 2,14,216 3,04,705 90,489 42.2 Foreign Assets 47,318 38,281 -9,037 -19.1 Net Liabilities 1,66,898 2,66,424 99,526 59.6 * Based on Face Value Table 2: Mutual Fund Companies - Non-Resident Holding (`million) Non-resident holding End-March Variation 2011 2012 Absolute Per cent 1 2 3 4 5 Face value of units 2,13,374 3,04,009 90,635 42.5 Market Value of units 4,05,458 5,04,008 98,550 24.3 Other foreign liabilities 842 696 -146 -17.3 Table 3: Mutual Fund Companies -Country-wise Foreign Liabilities (at face value) (per cent) Country End-March 2011 2012 1 2 3 United Arab Emirates 20.2 26.5 United States Of America 8.5 9.7 United Kingdom 5.3 4.9 Singapore 3.7 3.8 Oman, Sultanate Of 1.4 1.6 Hong Kong 2.0 1.4 Mauritius 0.9 1.0 Canada 1.5 0.9 Kuwait 0.5 0.7 Bahrain 0.8 0.7 Others* 55.2 48.8 Total 100.0 100.0 * Includes cases where the investing country was not specified, or Indian address was give or country-wise contribution was very small. #Total may not tally due to rounding off. Table 4: Mutual Fund Companies - Country-wise Foreign Liabilities (at Market Value) (per cent) Country End-March 2011 2012 1 2 3 United Arab Emirates 16.0 20.1 United States Of America 9.0 9.9 United Kingdom 4.9 4.8 Canada 5.8 3.6 Singapore 3.0 3.0 Mauritius 2.3 2.1 Oman, Sultanate Of 1.3 1.5 Hong Kong 1.6 1.2 Bahrain 0.7 0.7 Qatar 0.4 0.6 Others* 55.0 52.5 Total 100.0 100.0 * Includes cases where the investing country was not specified, or Indian address was give or country-wise contribution was very small. #Total may not tally due to rounding off. Table 5: Mutual Fund Companies - Foreign Assets (`million) Non-resident holding End-March Variation 2009 2010 Absolute Per cent 1 2 3 4 5 Equity Securities 47,086 37,025 -10,061 -21.4 Debt Securities 0 0 0 0.0 Other foreign assets 232 1,256 1,024 441.4 Table 6: Mutual Fund Companies - Portfolio Assets held Abroad (`million) Country End-March Variation 2009 2010 Absolute Per cent 1 2 3 4 5 Luxembourg 24,011 20,568 -3,443 -14.3 (51) (55.6) United States Of America 9,457 5,847 -3,610 -38.2 (20.1) (15.8) Hong Kong 3,023 2,393 -630 -20.8 (6.4) (6.5) Switzerland 1,992 1,698 -294 -14.8 (4.2) (4.6) Korea (South) 1,837 1,321 -516 -28.1 (3.9) (3.6) Taiwan 601 812 211 35.1 (1.3) (2.2) Japan 1,378 727 -651 -47.2 (2.9) (2) Australia 1,391 654 -737 -53.0 (3) (1.8) Ireland 552 613 61 11.1 (1.2) (1.7) United Kingdom 549 612 63 11.5 (1.2) (1.7) Others 2,295 1,780 -515 -22.4 (4.9) (4.8) Total 47,086 37,025 -10,061 -21.4 Figures in parentheses are percentage share to total Table 7: Asset Management Companies - Foreign Liabilities and Assets (`million) Asset Management Company End-March Variation 2011 2012 Absolute Per cent 1 2 3 4 5 Foreign Liabilities 25,007 28,543 3,536 14.1 Foreign Assets 1,671 1,393 -278 -16.6 Net Liabilities 23,336 27,150 3,814 16.3 Table 8: Asset Management Companies - Country-wise Distribution of Foreign Liabilities (`million) Country End-March Variation 2011 2012 Absolute Per cent 1 2 3 4 5 Mauritius 9027 9808 781 8.7 (36.1) (34.4) United Kingdom 4866 5603 737 15.1 (19.5) (19.6) Japan 2047 2021 -26 -1.3 (8.2) (7.1) United States Of America 555 1970 1,415 255.0 (2.2) (6.9) Hong Kong 1941 1952 11 0.6 (7.8) (6.8) Singapore 1594 1767 173 10.9 (6.4) (6.2) Canada 1125 1507 382 34.0 (4.5) (5.3) Korea (South) 1138 1185 47 4.1 (4.6) (4.2) France 1027 1126 99 9.6 (4.1) (3.9) Cayman Islands 527 569 42 8.0 (2.1) (2) Others 1160 1035 -125 -10.8 (4.6) (3.6) Grand Total 25,007 28,543 3,536 14.1 Figures in bracket indicate percentage share to total Table 9: Asset Management Companies- Country-wise Distribution of Foreign Assets (`million) Country End-March Variation 2011 2012 Absolute Per cent 1 2 3 4 5 Singapore 673 520 -153 -22.7 (40.3) (37.3) Guernsey 278 481 203 73.0 (16.6) (34.5) Mauritius 253 126 -127 -50.2 (15.1) (9) United Arab Emirates 53 62 9 17.0 (3.2) (4.5) Malaysia 62 57 -5 -8.1 (3.7) (4.1) United States Of America 13 16 3 23.1 (0.8) (1.1) United Kingdom 66 12 -54 -81.8 (3.9) (0.9) Sri Lanka 4 4 0 0.0 (0.2) (0.3) Others 269 115 -154 -57.2 (16.1) (8.3) Grand Total 1,671 1,393 -278 -16.6 Figures in bracket indicate percentage share to total R. R. Sinha Deputy General Manager Press Release : 2012-2013/1262