Today, the Reserve Bank released the results of the 2018-19 round of the Survey of Foreign Liabilities and Assets of the Mutual Fund (MF) Companies on its website1. The survey covers 44 Indian MF companies and their Asset Management Companies (AMCs), which held/acquired foreign assets and/or liabilities during 2018-19 and/or in the preceding year (Annex and Schedule 4). Information on the stock of external assets and liabilities of AMCs were obtained from the annual return on foreign liabilities and assets. Highlights: I. Mutual Fund Companies:
-
Foreign liabilities of MF companies (US $ 13.5 billion) in the form of non- residents’ investments in the units substantially exceeded their foreign assets in the form of overseas equity investments (US $ 0.7 billion) in March 2019 with both foreign liabilities and foreign assets recording increases during 2018-19 (Table 1).
-
The UAE, the UK and the USA were the largest investors together accounting for one-third of the MF units held by non-residents (Table 2 and Table 3).
-
MF units held by non-residents in Mauritius and Singapore declined after the amendment of Double Taxation Avoidance Agreement (DTAA) with these countries for withdrawal of capital gains exemption in a phased manner, effective April 2017 (Table 2).
-
The USA (44.6 per cent share in total foreign assets) and Luxembourg (41.1 per cent) remained the preferred investment destinations for MF companies (Table 4).
II. Asset Management Companies:
-
Foreign liabilities of AMCs (US $ 3.3 billion) exceeded foreign assets (US $ 0.1 billion) substantially in March 2019 (Table 5).
-
Net foreign liabilities of AMCs increased by 68 per cent during the year, mainly on account of equity valuation gains after stock exchange listing (Table 5).
-
Non-residents in the UK held over half of the foreign liabilities of AMCs in March 2019; AMCs’ equity liabilities to non-residents in Japan, Mauritius and Hong Kong declined during the year due to capital repatriation and reduction in market value of their investment (Table 6).
-
Overseas assets of AMCs were largely held in Guernsey, Mauritius and Singapore (Table 7).
Ajit Prasad
Director Press Release : 2019-2020/719
| Table 1: Mutual Fund Companies – Foreign Liabilities and Assets |
| Item |
End-March 2018 (R) |
End-March 2019 (P) |
% Growth
(₹ terms) |
| ₹ crore |
US$ million |
₹ crore |
US$ million |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
| Foreign Assets |
3,434 |
528 |
4,499 |
650 |
31.0 |
| (a) Equity Securities |
3,409 |
524 |
4,482 |
648 |
31.5 |
| (b) Debt Securities |
0 |
|
0 |
|
|
| (c) Other Foreign Assets |
25 |
4 |
17 |
2 |
-32.0 |
| |
|
|
|
|
|
| Foreign Liabilities |
85,847 |
13,198 |
93,541 |
13,523 |
9.0 |
| Market Value of Units |
85,670 |
13,171 |
93,340 |
13,494 |
9.0 |
| Other Foreign Liabilities |
177 |
27 |
201 |
29 |
13.6 |
| |
|
|
|
|
|
| Net Liabilities |
82,413 |
12,670 |
89,042 |
12,873 |
8.0 |
| Face Value of Units |
31,869 |
4,900 |
35,051 |
5,067 |
10.0 |
| Table 2: Foreign Liabilities in Units of MF Companies at Face Value - Major Countries |
| Amount in ₹ crore |
| Country |
End-March 2018 |
End-March 2019 |
% Share in 2019 |
Annual Variation |
| Absolute |
per cent |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
| United Arab Emirates |
5,859 |
5,769 |
16.5 |
-90 |
-1.5 |
| United Kingdom |
3,051 |
3,458 |
9.9 |
407 |
13.3 |
| United States of America |
2,374 |
2,797 |
8.0 |
423 |
17.8 |
| Singapore |
2,499 |
2,084 |
5.9 |
-415 |
-16.6 |
| Hong Kong |
894 |
818 |
2.3 |
-76 |
-8.5 |
| Oman |
630 |
715 |
2.0 |
85 |
13.5 |
| Mauritius |
932 |
530 |
1.5 |
-402 |
-43.1 |
| Qatar |
319 |
526 |
1.5 |
207 |
64.9 |
| Saudi Arabia |
464 |
504 |
1.4 |
40 |
8.6 |
| Kuwait |
376 |
470 |
1.3 |
94 |
25.0 |
| Others* |
14,473 |
17,381 |
49.6 |
2,908 |
20.1 |
| Of which: India |
8,366 |
10,432 |
29.8 |
2,066 |
24.7 |
| Total |
31,869 |
35,051 |
100.0 |
3,182 |
10.0 |
| *Others (comprised 241 countries) includes non-resident Indians (NRIs), who use their Indian permanent address. |
| Table 3: Foreign Liabilities in Units of MF Companies at Market Value – Major Countries |
| Amount in ₹ crore |
| Country |
End-March 2018 |
End-March 2019 |
% Share in 2019 |
Annual Variation |
| Absolute |
per cent |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
| United Arab Emirates |
14,315 |
14,979 |
16.0 |
664 |
4.6 |
| United States of America |
7,704 |
8,989 |
9.6 |
1,285 |
16.7 |
| United Kingdom |
7,072 |
7,751 |
8.3 |
679 |
9.6 |
| Singapore |
6,897 |
5,683 |
6.1 |
-1,214 |
-17.6 |
| Mauritius |
5,649 |
3,831 |
4.1 |
-1,818 |
-32.2 |
| Oman |
1,679 |
1,898 |
2.0 |
219 |
13.0 |
| Hong Kong |
1,836 |
1,839 |
2.0 |
3 |
0.2 |
| Qatar |
827 |
1,431 |
1.5 |
604 |
73.0 |
| Saudi Arabia |
1,229 |
1,331 |
1.4 |
102 |
8.3 |
| Kuwait |
1,070 |
1,316 |
1.4 |
246 |
23.0 |
| Others* |
37,391 |
44,292 |
47.5 |
6,901 |
18.5 |
| Of which: India |
21,472 |
26,840 |
28.8 |
5,368 |
25.0 |
| Total |
85,670 |
93,340 |
100.0 |
7,670 |
9.0 |
| *Others (comprised 241 countries) includes non-resident Indians (NRIs), who use their Indian permanent address. |
| Table 4: Equity Securities held Abroad by Mutual Fund Companies – Major Countries |
| Amount in ₹ crore |
| Country |
End-March 2018 |
End-March 2019 |
% Share in 2019 |
Variation |
| Absolute |
per cent |
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
| United States of America |
1,191 |
1,997 |
44.6 |
806 |
67.7 |
| Luxembourg |
1,431 |
1,840 |
41.1 |
409 |
28.6 |
| Cayman Islands |
151 |
112 |
2.5 |
-39 |
-25.8 |
| Japan |
64 |
104 |
2.3 |
40 |
62.5 |
| Taiwan |
37 |
54 |
1.2 |
17 |
45.9 |
| Switzerland |
67 |
54 |
1.2 |
-13 |
-19.4 |
| Ireland |
30 |
43 |
1.0 |
13 |
43.3 |
| Bermuda |
0 |
41 |
0.9 |
41 |
0.0 |
| Korea, Republic of |
63 |
34 |
0.8 |
-29 |
-46.0 |
| China |
0 |
31 |
0.7 |
31 |
0.0 |
| Others |
374 |
172 |
3.8 |
-202 |
-54.0 |
| Total |
3,409 |
4,482 |
100.0 |
1,073 |
31.5 |
| Table 5: Foreign Liabilities and Assets of Asset Management Companies |
| Item |
End-March 2018 (R) |
End-March 2019 (P) |
% Growth
(₹ terms) |
| ₹ crore |
US$ million |
₹ crore |
US$ million |
| Foreign Liabilities* |
13,931 |
2,142 |
22,979 |
3,322 |
64.9 |
| (a) Equity and other capital |
13,418 |
2,063 |
21,142 |
3,056 |
57.6 |
| (b) Portfolio investment |
506 |
78 |
1,833 |
265 |
262.3 |
| (c) Other Investment |
7 |
- |
4 |
- |
-42.9 |
| |
|
|
|
|
|
| Foreign Assets |
615 |
95 |
631 |
91 |
2.6 |
| (a) Equity and other capital |
590 |
91 |
599 |
87 |
1.5 |
| (b) Portfolio investment |
- |
- |
- |
- |
- |
| (c) Other Investment |
25 |
4 |
32 |
5 |
28.0 |
| |
|
|
|
|
|
| Net Liabilities |
13,316 |
2,047 |
22,348 |
3,231 |
67.8 |
Source: Annual Census on Foreign Liabilities and Assets, RBI
Note: - Nil/negligible |
| Table 6: Foreign Liabilities of AMCs in Equity and Other Capital – Major Countries |
| Amount in ₹ crore |
| Country |
End-March |
Variation |
| 2018 (R) |
2019 (P) |
% Share in 2019 |
Absolute |
per cent |
| United Kingdom* |
1,823 |
11,003 |
52.0 |
9,180 |
503.6 |
| Japan |
6,475 |
5,586 |
26.4 |
-889 |
-13.7 |
| Canada |
1,568 |
1,848 |
8.7 |
280 |
17.9 |
| Mauritius |
2,256 |
1,369 |
6.5 |
-887 |
-39.3 |
| France |
377 |
506 |
2.4 |
129 |
34.2 |
| Hong Kong |
382 |
232 |
1.1 |
-150 |
-39.3 |
| Korea, Republic Of |
176 |
219 |
1.0 |
43 |
24.4 |
| Singapore |
178 |
186 |
0.9 |
8 |
4.5 |
| United States of America |
105 |
106 |
0.5 |
1 |
0.4 |
| Netherlands |
78 |
87 |
0.4 |
9 |
11.5 |
| Total |
13,418 |
21,142 |
100.0 |
7,724 |
57.6 |
Source: Annual Census on Foreign Liabilities and Assets, RBI
* certain shares held were listed on stock exchanges during the reference year.
Note: R: Revised; P: Provisional. |
| Table 7: Foreign Assets of AMCs in Equity and Other Capital – Major Countries |
| Amount in ₹ crore |
| Country |
End-March |
Variation |
| 2018 (R) |
2019 (P) |
% Share in 2019 |
Absolute |
per cent |
| Guernsey |
363 |
368 |
61.4 |
5 |
1.4 |
| Mauritius |
145 |
137 |
22.9 |
-8 |
-5.5 |
| Singapore |
66 |
68 |
11.4 |
2 |
3.0 |
| United Arab Emirates |
5 |
6 |
1.0 |
1 |
20.0 |
| United States of America |
11 |
20 |
3.3 |
9 |
81.8 |
| Total |
590 |
599 |
100.0 |
9 |
1.5 |
Source: Annual Census on Foreign Liabilities and Assets, RBI
Note: R: Revised; P: Provisional |
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