The Reserve Bank today released, on its website, the data related to results of the 2015-16 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 (list in Annex) which held/acquired foreign assets and/or liabilities during current and/or preceding year. For the reference period 2015-16, financial year-end position was collected through Schedule 4 from MFs in respect of units issued to non-residents, unpaid dividend, redemption of units issued to non-residents and MFs’ overseas investments. Data on stock of external assets and liabilities of AMCs were collected through theFLA return.
Highlights:
I. Mutual Fund Companies
- Foreign Liabilities: Foreign liabilities of MFs increased by ₹ 23.1 billion during 2015-16 to ₹ 581.7 billion (US$ 8.8 billion) at market value in March 2016. Units issued to non-residents, which had a dominant share within liabilities, increased from ₹558.1 billion in March 2015 to ₹ 581.2 billion March 2016, though the increase in terms of face value was much lower, from ₹ 235.4 billion to ₹ 259.4 billion, over the same period. Other foreign liabilities arising out of unpaid income / dividends to non-residents, sale proceeds pending repatriation etc., marginally declined but remained around ₹ 0.5 billion in March 2016 (Table 1 & 2).
- Foreign Assets: Contrary to the movements in foreign liabilities of MFs, their foreign assets declined by ₹ 2.1 billion during 2015-16 to ₹ 38.5 billion in March 2016, where equity securities had an overwhelming share of ₹ 38.3 billion. As a consequence, net foreign liabilities of MFs increased by ₹ 25.3 billion during 2015-16 to ₹ 543.2 billion (US$ 8.2 billion) in March 2016. (Table 3).
- Country-wise Foreign Liabilities: United Arab Emirates, Singapore, UK, Mauritius and USA together accounted for 47.7 per cent and 46.7 per cent share at face value and market value, respectively, in the total units held by non-residents in March 2016 (Table 4 & 5).
- Country-wise Foreign Assets: Luxembourg (with share of 49 per cent in March 2016) continued to be the major overseas investment destination (equity securities held abroad) of MFs, followed by USA (39.5 per cent share) (Table 6).
II. Asset Management Companies
- Foreign Liabilities and Assets: Foreign liabilities of AMCs increased by ₹ 5.5 billion during 2015-16 to ₹ 43.8 billion in March 2016. Foreign assets of AMCs increased from ₹ 2.2 billion to ₹ 3.9 billion during the year and, as a consequence, their net foreign liabilities increased by ₹ 3.9 billion during 2015-16 to around ₹ 40.0 billion in March 2016 (Table 7).
- Country-wise Foreign Liabilities and Assets: UK accounted for the maximum share in foreign liabilities (27 per cent), followed by Mauritius (22.2 per cent) and Japan (14.4 per cent). Guernsey and Singapore together accounted for around 73 per cent of total foreign assets of AMCs in March 2016 (Table 8 & 9).
- Reinvested Earnings: Foreign Direct Investors’ reinvested earnings in the AMCs, estimated from their share in the difference between company’s net profit and distributed dividends, increased from ₹ 3.5 billion in 2014-15 to ₹ 5.4 billion in 2015-16.
The press release announcing the results of the previous survey round for the year 2014-15 was placed in public domain on August 11, 2015.
Alpana Killawala
Principal Adviser
Press Release : 2016-2017/316
Annex
| Table 1: Mutual Fund Companies – Foreign Liabilities and Assets |
| Item |
End-March 2015 |
End-March 2016 |
% Growth
(₹ terms) |
| ₹ million |
US$ million |
₹ million |
US$ million |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
| Foreign Liabilities |
5,58,550 |
8,924 |
5,81,674 |
8,769 |
4.1 |
| Foreign Assets |
40,643 |
649 |
38,489 |
580 |
-5.3 |
| Net Liabilities |
5,17,907 |
8,275 |
5,43,185 |
8,189 |
4.9 |
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. The above are also applicable for the remaining tables. |
| Table 2: Mutual Fund Companies – Non-Resident Holding of Foreign Liabilities |
| Item |
End-March 2015 |
End-March 2016 |
% Growth
(₹ terms) |
| ₹ million |
US$ million |
₹ million |
US$ million |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
| Face Value of Units |
235,402 |
3,761 |
259,439 |
3,911 |
10.2 |
| Market Value of Units |
558,061 |
8,916 |
581,210 |
8,762 |
4.1 |
| Other Foreign Liabilities |
489 |
8 |
464 |
7 |
-5.1 |
| Table 3: Mutual Fund Companies – Foreign Assets |
| Item |
End-March 2015 |
End-March 2016 |
% Growth
(₹ terms) |
| ₹ million |
US$ million |
₹ million |
US$ million |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
| Equity Securities |
40,358 |
644 |
38,315 |
577 |
-5.1 |
| Debt Securities |
0 |
0 |
0 |
0 |
0 |
| Other Foreign Assets |
285 |
5 |
174 |
3 |
-38.9 |
| Table 4: Foreign Liabilities in Units of Mutual Fund Companies at Face Value – Major Countries |
| Amount in ₹ million |
| Country |
End-March 2015 |
End-March 2016 |
% Share in 2016 |
Annual Variation |
| Absolute |
Per cent |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
| United Arab Emirates |
31,776 |
44,317 |
17.1 |
12,541 |
39.5 |
| Singapore |
18,308 |
24,039 |
9.3 |
5,731 |
31.3 |
| United Kingdom |
17,094 |
21,654 |
8.3 |
4,560 |
26.7 |
| Mauritius |
13,800 |
20,105 |
7.7 |
6,305 |
45.7 |
| United States of America |
10,851 |
13,834 |
5.3 |
2,983 |
27.5 |
| Hong Kong |
5,012 |
5,801 |
2.2 |
789 |
15.7 |
| Kenya |
1,586 |
3,105 |
1.2 |
1,519 |
95.8 |
| Canada |
3,000 |
3,045 |
1.2 |
45 |
1.5 |
| Saudi Arabia |
1,968 |
2,867 |
1.1 |
899 |
45.7 |
| Oman, Sultanate of |
1,771 |
2,337 |
0.9 |
566 |
32.0 |
| Others |
130,236 |
118,335 |
45.6 |
-11,901 |
-9.1 |
| Total |
235,402 |
259,439 |
100.0 |
24,037 |
10.2 |
Table 5: Foreign Liabilities of Mutual Fund Companies – Major Countries
(Units at Market Value) |
| Amount in ₹ million |
| Country |
End-March 2015 |
End-March 2016 |
% Share in 2016 |
Annual Variation |
| Absolute |
Per cent |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
| United Arab Emirates |
65,309 |
86,319 |
14.9 |
21,010 |
32.2 |
| Singapore |
39,707 |
57,984 |
10.0 |
18,277 |
46.0 |
| Mauritius |
70,844 |
53,574 |
9.2 |
-17,270 |
-24.4 |
| United Kingdom |
34,539 |
42,732 |
7.4 |
8,193 |
23.7 |
| United States of America |
23,194 |
29,935 |
5.2 |
6,741 |
29.1 |
| Hong Kong |
9,611 |
11,039 |
1.9 |
1,428 |
14.9 |
| Canada |
9,724 |
10,067 |
1.7 |
343 |
3.5 |
| Saudi Arabia |
3,959 |
5,959 |
1.0 |
2,000 |
50.5 |
| Kenya |
3,549 |
5,744 |
1.0 |
2,195 |
61.8 |
| Oman, Sultanate of |
3,621 |
5,065 |
0.9 |
1,444 |
39.9 |
| Others |
294,004 |
272,792 |
46.9 |
-21,212 |
-7.2 |
| Total |
558,061 |
581,210 |
100.0 |
23,149 |
4.1 |
| Table 6: Equity Securities held Abroad by Mutual Fund Companies– Major Countries |
| Amount in ₹ million |
| Country |
End-March 2015 |
End-March 2016 |
% Share in 2016 |
Variation |
| Absolute |
Per cent |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
| Luxembourg |
23,571 |
18,792 |
49.0 |
-4,779 |
-25.4 |
| United States Of America |
11,208 |
15,145 |
39.5 |
3,937 |
26.0 |
| Cayman Islands |
1,260 |
871 |
2.3 |
-389 |
-44.7 |
| Switzerland |
671 |
608 |
1.6 |
-63 |
-10.4 |
| Korea, Republic of |
567 |
553 |
1.4 |
-14 |
-2.5 |
| Brazil |
475 |
506 |
1.3 |
31 |
6.1 |
| Taiwan |
529 |
404 |
1.1 |
-125 |
-30.9 |
| Japan |
309 |
287 |
0.7 |
-22 |
-7.7 |
| Ireland |
363 |
273 |
0.7 |
-90 |
-33.0 |
| Hong Kong |
332 |
152 |
0.4 |
-180 |
-118.4 |
| Others |
1,073 |
724 |
1.9 |
-349 |
-48.2 |
| Total |
40,358 |
38,315 |
100 |
-2,043 |
-5.3 |
| Table 7: Foreign Liabilities and Assets of Asset Management Companies |
| Item |
End-March 2015 |
End-March 2016 |
% Growth
(₹ terms) |
| ₹ million |
US$ million |
₹ million |
US$ million |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
| Foreign Liabilities |
38,321 |
612.2 |
43,813 |
660.5 |
14.3 |
| Foreign Assets |
2,230 |
35.6 |
3,850 |
58.0 |
72.6 |
| Net Liabilities |
36,091 |
576.6 |
39,963 |
602.5 |
10.7 |
| Table 8: Foreign Liabilities of Asset Management Companies – Major Countries |
| Amount in ₹ million |
|
End-March |
Variation |
| Country |
2015 |
2016 |
% Share in 2016 |
Absolute |
Per cent |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
| United Kingdom |
10,052 |
11,831 |
27.0 |
1,779 |
17.7 |
| Mauritius |
9,186 |
9,735 |
22.2 |
549 |
6.0 |
| Japan |
4,606 |
6,309 |
14.4 |
1,703 |
37.0 |
| Canada |
3,041 |
4,068 |
9.3 |
1,027 |
33.8 |
| Singapore |
2,905 |
3,373 |
7.7 |
468 |
16.1 |
| France |
1,990 |
2,334 |
5.3 |
344 |
17.3 |
| Hong Kong |
2,124 |
2,194 |
5.0 |
70 |
3.3 |
| Korea, Republic of |
2,032 |
2,032 |
4.6 |
0 |
0.0 |
| Caymen Islands |
583 |
627 |
1.4 |
44 |
7.5 |
| Netherlands |
576 |
620 |
1.4 |
44 |
7.6 |
| Others |
1,226 |
690 |
1.6 |
-536 |
-43.7 |
| Grand Total |
38,321 |
43,813 |
100.0 |
5,492 |
14.3 |
| Table 9: Foreign Assets of Asset Management Companies – Major Countries |
| Amount in ₹ million |
|
End-March |
Variation |
| Country |
2015 |
2016 |
% Share in 2016 |
Absolute |
Per cent |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
| Guernsey |
790 |
2,426 |
63.0 |
1,636 |
207.1 |
| Singapore |
372 |
384 |
10.0 |
12 |
3.2 |
| Mauritius |
199 |
245 |
6.4 |
46 |
23.1 |
| United Arab Emirates |
59 |
52 |
1.4 |
-7 |
-11.9 |
| Sri Lanka |
4 |
4 |
0.1 |
0 |
0.0 |
| Others |
806 |
739 |
19.2 |
-67 |
-8.3 |
| Grand Total |
2,230 |
3,850 |
100 |
1,619 |
72.6 |
