Survey of Foreign Liabilities and Assets of M.F. Companies

Today, the Reserve Bank released the results of the 2019-20 round of the Survey of Foreign Liabilities and Assets of the Mutual Fund (MF) Companies¹.

The survey covered 44 Indian MF companies and their Asset Management Companies (AMCs), which held/acquired foreign assets/ liabilities during 2019-20 and/or in the preceding year (list given in the Annex). The stock of external assets and liabilities of their AMCs is taken from the annual census on foreign liabilities and assets (FLA) and the information on face value and market value of units held by non-resident, unit premium reserve and other foreign liabilities were collected under Schedule 4.

Highlights:

I. Mutual Fund Companies:

• Foreign liabilities of MF companies declined by 15.7 per cent during 2019-20 and stood at US $9.6 billion in March 2020, mainly consisting of units issued to non-residents; their overseas assets were much lower at US $0.8 billion (Table 1).
• The UAE, the UK and the USA accounted for 38 per cent of the total MF units held by non-residents (Table 2).
• Overseas equity investments of MF companies were largely concentrated in the Luxembourg and the USA (Table 4).

II. Asset Management Companies (AMCs):

• Foreign liabilities of AMCs stood at US $ 4.4 billion in March 2020 as compared to their foreign assets of US $ 0.1 billion (Table 5).
• Non-residents in the UK and Japan together held nearly 89 per cent FDI in the AMCs (Table 6).
• The relatively small overseas direct investment by AMCs were largely held in Guernsey, Singapore and Mauritius (Table 7).

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