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Survey of India™s Foreign Liabilities and Assets for the Mutual Fund Companies 2012-13

The Reserve Bank of India today released, on its website, the datarelated to the results of Survey of India’s Foreign Liabilities and Assets for the Mutual Fund Companies 2012-13.

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 45 companies (list in Annex) which held/acquired foreign assets and/or liabilities during current and/or previous years. For the reference period March 2012-13, 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 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., declined by ` 53.7 billion (US$ 1.5 billion) to ` 383.4 billion (US$ 7.0 billion) in March 2013. Units issued to non-residents, the major component of foreign liabilities at face value, declined from ` 256.6 billion in March 2012 to ` 217.4 billion in March 2013 (Table 1 & 2).

  • Foreign Assets: Foreign assets of MFs also declined from ` 39.3 billion in March 2012 to ` 31.9 billion (US$ 0.6 billion) as at end-March 2013; as a consequence, net liabilities of MFs declined by ` 46.4 billion (US$ 1.3 billion) to ` 351.4 billion (US$ 6.5 billion) in March 2013. Equity securities remained the major component of MFs foreign assets which declined from ` 38.0 billion in March 2012 to ` 30.8 billion in March 2013. None of the MF companies invested in debt securities abroad (Table 3).

  • Country-wise Foreign Liabilities: United Arab Emirates (UAE), USA, UK, Singapore, Mauritius, Canada and Hong Kong were the major countries which together accounted for nearly 35 per cent of total foreign liabilities of the mutual fund companies in March 2013 (Table 4 & 5).

  • Country-wise Foreign Assets: Luxembourg (with share of 58.4 per cent in March 2013) was the major country with respect to foreign assets of MFs, followed by USA (15.6 per cent) and Hong Kong (5.9 per cent) (Table 6).

II. Asset Management Companies

Foreign Liabilities and Assets: Foreign liabilities of AMCs associated with the MFs increased by ` 4.5 billion to ` 32.9 billion in March 2013. Foreign assets of AMCs increased marginally from ` 1.6 billion in March 2012 to ` 1.7 billion in March 2013. As a consequence, net liabilities increased from ` 26.9 billion in March 2012 to ` 31.2 billion in March 2013 (Table 7).

Country-wise Foreign Liabilities and Assets: Mauritius accounted for the maximum share of foreign liabilities (29.0 per cent), followed by UK (19.5 per cent) and Japan (15.8 per cent). Singapore and Guernsey accounted for more than two-thirds share in of foreign assets of AMCs in March 2013 (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 ` 2.9 billion in 2011-12 to ` 3.2 billion in 2012-13.

Sangeeta Das
Director

Press Release : 2013-2014/1602

—————————————————————————–

Table 1: Mutual Fund Companies Foreign Liabilities and Assets

Mutual Fund Company

End-March 2012

End-March 2013

Annual Growth in (%)

` million

US$ million*

` million

US$ million*

(1)

(2)

(3)

(4)

(5)

(6)

Foreign Liabilities

4,37,081

8,544

3,83,357

7,048

-12.3

Foreign Assets

39,272

768

31,935

587

-18.7

Net Liabilities

3,97,809

7,776

3,51,422

6,461

-11.7

* Using end-march Rupee/ Dollar RBI reference 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 2012

End-March 2013

Annual Growth in (%)

` million

US$ million*

` million

US$ million*

(1)

(2)

(3)

(4)

(5)

(6)

Face value of units

2,56,562

5,015

2,17,411

3,997

-15.3

Market Value of units

4,35,806

8,519

3,82,185

7,027

-12.3

Other foreign liabilities

1,275

25

1,172

21

-8.1

Table 3: Mutual Fund Companies Foreign Assets

Type of Assets

End-March 2012

End-March 2013

Annual Growth in(%)

` million

US$ million*

` million

US$ million*

(1)

(2)

(3)

(4)

(5)

(6)

Equity Securities

38,019

743

30,813

566

-19

Debt Securities

0

0

0

0

0

Other Foreign Assets

1,253

25

1,122

21

-10.5

Table 4: Foreign Liabilities of
Mutual Fund Companies:
Country-wise Share

At Face Value (per cent)

Country

End-March

2012

2013

(1)

(2)

(3)

United Arab Emirates

19.1

13.3

United States of America

8.6

7.9

United Kingdom

5.7

6.3

Singapore

3.4

3.4

Mauritius

1.1

1.7

Canada

0.8

1.4

Hong Kong

1.7

1.4

Bahrain

0.8

1.2

Zambia

0.1

0.9

Oman, Sultanate of

1.7

0.7

Others*

57

61.8

Total

100

100

* Includes instances where the investing countries were not specified.

Table 5: Foreign Liabilities of
Mutual Fund Companies:
Country-wise Share

At Market Value (per cent)

Country

End-March

2012

2013

(1)

(2)

(3)

United Arab Emirates

16.3

11.8

United States of America

9.8

8.8

United Kingdom

5.5

5.8

Mauritius

1.0

4.4

Singapore

2.9

2.9

Canada

0.8

2.0

Hong Kong

1.3

1.3

Bahrain

0.7

1.0

Oman, Sultanate of

1.5

0.9

Saudi Arabia

0.6

0.6

Others*

59.6

60.5

Total

100

100

* 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

% Share in Total (2013)

Variation

2012

2013

Absolute

Per cent

(1)

(2)

(3)

(4)

(5)

(6)

Luxembourg

21,668

18,000

58.4

-3,668

-16.9

United States of America

5,297

4,806

15.6

-491

-9.3

Hong Kong

2,418

1,824

5.9

-594

-24.6

Switzerland

1,698

1,187

3.8

-511

-30.1

Taiwan

841

725

2.4

-116

-13.8

Japan

727

723

2.3

-4

-0.6

Korea, Republic of

1,391

584

1.9

-807

-58

Cayman Islands

443

518

1.7

75

16.9

Ireland

587

510

1.7

-77

-13.1

Canada

369

464

1.5

95

25.7

Others

2,580

1,472

4.8

-1,108

-42.9

Total

38,019

30,813

100

-7,206

-19.0

Table 7: Asset Management Companies Foreign Liabilities and Assets

Asset Management Company

End-March 2012

End-March 2013

Annual Growth in (%)

` million

US$ million*

` million

US$ million*

(1)

(2)

(3)

(4)

(5)

(6)

Foreign Liabilities

28,483

557

32,941

606

15.7

Foreign Assets

1,625

32

1,746

32

7.4

Net Liabilities

26,858

525

31,195

574

16.1

Table 8: Asset Management Companies Country-wise Distribution of Foreign Liabilities

Amount in ` million at market value

Country

End-March

% Share in Total (2013)

Variation

2012

2013

Absolute

Per cent

(1)

(2)

(3)

(4)

(5)

(6)

Mauritius

9808

9562

29.0

-246

-2.5

United Kingdom

5517

6432

19.5

915

16.6

Japan

2021

5194

15.8

3,173

157

Hong Kong

1952

2115

6.4

163

8.4

Singapore

1767

2114

6.4

347

19.6

Canada

1507

1905

5.8

398

26.4

United States of America

1973

1568

4.8

-405

-20.5

France

1126

1280

3.9

154

13.7

Korea, Republic of

1185

1197

3.6

12

1

Netherlands

380

543

1.7

163

42.9

Cayman Islands

569

540

1.6

-29

-5.1

Others

678

491

1.5

-187

-27.6

Total

28483

32941

100

4,458

15.7

Table 9: Asset Management Companies Country-wise Distribution of Foreign Assets

Amount in ` million at market value

Country

End-March

% Share in Total (2013)

Variation

2012

2013

Absolute

Per cent

(1)

(2)

(3)

(4)

(5)

(6)

Guernsey

481

639

36.6

158

32.8

Singapore

520

533

30.5

13

2.5

Mauritius

149

189

10.8

40

26.8

Malaysia

57

71

4.1

14

24.6

United Arab Emirates

62

61

3.5

-1

-1.6

United States of America

16

24

1.4

8

50

United Kingdom

12

9

0.5

-3

-25

Sri Lanka

1

1

0.1

0

0

Others

327

219

12.5

-108

-33

Total

1625

1746

100

121

7.4

Tags: Hong KongIndiaMarch 2012March 2013Mutual fundReserve Bank of IndiaUnited Arab EmiratesUnited States

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