2011 Investment Company Fact Book - A Review of Trends and Activity in the Investment Company Industry doc

51st EDITION
2011 Investment Company Fact Book
A Review of Trends and Activity in the Investment Company Industry
WWW.ICIFACTBOOK.ORG
2010 Facts at a Glance
Totl worldwide ssets invested in mutul funds trillion
U.S. investment compny totl net ssets trillion
Mutualfunds trillion
Exchange-tradedfunds billion
Closed-endfunds billion
Unitinvestmenttrusts billion
U.S. investment compnies’ shre of:
USstocks 
USmunicipalsecurities 
Commercialpaper 
USgovernmentsecurities 
U.S. household ownership of mutul funds
Numberofhouseholdsowningmutualfunds million
Numberofindividualsowningmutualfunds million
Percentageofhouseholdsowningmutualfunds 
Medianamountfund-owninghouseholdsinvestedinmutualfunds 
Mediannumberofmutualfundsowned 
U.S. retirement mrket
Totalretirementmarketassets trillion
Percentageofhouseholdswithtax-advantagedretirementsavings 
IRAandDCplanassetsinvestedinmutualfunds trillion
2011 Investment Company Fact Book

51st EDITION
2011 Investment Company Fact Book
A Review of Trends and Activity in the Investment Company Industry

WWW.ICIFACTBOOK.ORG
The Investment Company Institute (ICI) is the national association of U.S. investment companies. ICI seeks to encourage adherence
to high ethical standards, promote public understanding, and otherwise advance the interests of funds, their shareholders, directors,
and advisers.
Although information or data provided by independent sources are believed to be reliable, ICI is not responsible for its accuracy,
completeness, or timeliness. Opinions expressed by independent sources are not necessarily those of the Institute. If you have
questions or comments about this material, please contact the source directly.
Fifty-first edition
ISBN 978-1-878731-50-5
Copyright © 2011 by the Investment Company Institute
Contents
LetterfromtheChiefEconomist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
ICIResearchStaffandPublications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xi
Part 1: Analysis and Statistics
ListofFigures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
ChapterOverviewofUS-RegisteredInvestmentCompanies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
ChapterRecentMutualFundTrends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
ChapterExchange-TradedFunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
ChapterClosed-EndFunds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
ChapterMutualFundFeesandExpenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
ChapterCharacteristicsofMutualFundOwners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
ChapterRetirementandEducationSavings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Part 2: Data Tables
ListofDataTables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SectionUSMutualFundTotals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
SectionClosed-EndFundsExchange-TradedFundsandUnitInvestmentTrusts . . . . . . . . . . . . . . . . 
SectionUSLong-TermMutualFunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
SectionUSMoneyMarketFunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
SectionAdditionalCategoriesofUSMutualFunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
SectionInstitutionalInvestorsintheUSMutualFundIndustry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SectionWorldwideMutualFundTotals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
AppendixAHowUS-RegisteredInvestmentCompaniesOperateandtheCorePrinciples
UnderlyingTheirRegulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
AppendixBSignificantEventsinFundHistory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Letter from the Chief Economist
Brian Reid
Chief Economist of the Investment Company Institute
One of the aspects of my job that I enjoy the most is visiting our member firms
to update them on issues in Washington or trends among funds and investors.
While the purpose of my visits is for me to inform members, in truth, these
presentations serve more to launch conversations in which I learn from them
about the asset management business. These conversations provide color and
context for the data that we gather, and they highlight new developments
among funds and their shareholders.
viii
LETTER FROM THE CHIEF ECONOMIST
Each year, the annual update of the Fact Book gives us an opportunity to present a broad overview
of the investment landscape by recording in a single volume some of the insights from these
meetings and from our own research. Sometimes the developments are slow, and the picture
barely changes from one year to the next. In other years, there are large shifts that permanently
affect the investment management business.
To capture these trends, Senior Economist Rochelle Antoniewicz and Senior Director of Statistical
Research Judy Steenstra, who lead ICI Research’s efforts to update the Fact Book, decide early
each winter what modifications need to be made to the volume’s seven chapters and nearly 170
charts and tables. Often, changes from one year to the next, like those in the fund business, are
incremental: we expand on an existing topic, add a new chart or table, or even remove material
that has become less relevant. Sometimes, sweeping revisions are needed, and we reorganize one

or more chapters. With each rewrite, the chapter’s author has an opportunity to restructure the
material to reflect how funds and investing behavior have changed over time.
This year, Senior Economist Peter Brady rewrote Chapter 7, which examines the role that mutual
funds play in the retirement and education savings markets. For example, you will see an expanded
discussion of target date funds, which have become a popular investment within 401(k) and other
defined contribution plans.
Peter also has done extensive research on how people prepare for retirement, and he discusses
some of this work in the restructured chapter. I find it notable that many of the Baby Boomers
who are in or nearing retirement will draw income from many of the same sources on which their
parents relied. Social Security, for example, continues to play a key role in providing income
security for many retired Americans because it replaces a large share of annual labor income for
many low- to moderate-income families. At the same time, the creation of IRAs in the 1970s and
the expansion of 401(k)s and other defined contribution plans in the past two decades have given
these workers new ways to save for retirement.
Exchange-traded funds provide another example of how changes in the fund industry drive ICI
Research and the composition of the Fact Book. The development of this investment product
has been quite rapid. In the past decade, ETF assets have grown from $66 billion to $992 billion,
making them the second most common type of registered investment company. Three years ago
we included ETFs in a chapter that focused on indexing and index funds, with an emphasis on
equity funds. In 2009, we dedicated a separate chapter to ETFs, reflecting both their rapid asset
growth and their increasing diversity as they expand to include actively managed funds and funds
investing in commodities, fixed-income securities, and a variety of other forms.
ix
In other ways, investing trends have come full circle. While researchers and journalists tend to
focus on domestic stock mutual funds, today the assets of fixed-income funds—money market and
bond funds—nearly equal those of stock funds. Table 3 in the data section tells us this is not the
first time that this has occurred. Stock funds dominated fund investing following the passage of
the Investment Company Act of 1940. But successive bear markets in stocks in the 1970s along with
rising interest rates drew investors into a growing number of bond and money market funds. By
1979, these funds managed more assets than stock funds, and they remained the dominant form

of fund investing as recently as 1995.
As I read this year’s Fact Book one last time before it goes to the printer, I am reminded how
much both funds and their investors have changed over time. The Fact Book also has evolved, by
reflecting our current research and analysis. What has not changed is our mission. ICI Research
seeks to bring together the highest quality data and scholarship about investment companies,
fund shareholders, and retirement markets; to serve as a resource for ICI members, educators,
government officials, journalists, and the general public; and to facilitate sound, well-informed
public policies affecting investment companies, their investors, and the retirement markets.
This mission is central to the work of every member of the ICI Research Department. Each spring
we dedicate months of effort, bringing together our talents and deep knowledge of funds and their
investors, to publish the latest edition of the Fact Book. Thank you for your continued interest and
feedback on our research and publications.
LETTER FROM THE CHIEF ECONOMIST

xi
STAFF AND PUBLICATIONS
ICI Senior Research Staff
Chief Economist
Brian Reid leads the Institute’s Research Department. The department serves as a
source for statistical data on the investment company industry and conducts public
policy research on fund industry trends, shareholder demographics, the industry’s role
in U.S. and foreign financial markets, and the retirement market. Prior to joining ICI in
1996, Reid served as an economist at the Federal Reserve Board of Governors. He has
a PhD in economics from the University of Michigan and a BS in economics from the
University of Wisconsin–Madison.
Industry and Financial Analysis
Sean Collins, Senior Director of Industry and Financial Analysis, heads ICI’s research on
the structure of the mutual fund industry, industry trends, and the broader financial
markets. Collins, who joined ICI in 2000, is responsible for conducting and overseeing
research on the flows, assets, and fees of mutual funds, as well as a major research

initiative to better understand the costs and benefits of laws and regulations governing
mutual funds. Prior to joining ICI, Collins was a staff economist at the Federal Reserve
Board of Governors and at the Reserve Bank of New Zealand. He has a PhD in
economics from the University of California, Santa Barbara, and a BA in economics
from Claremont McKenna College.
Retirement and Investor Research
Sarah Holden, Senior Director of Retirement and Investor Research, leads the Institute’s
research efforts on investor demographics and behavior, retirement and tax policy,
and international issues. Holden, who joined ICI in 1999, heads efforts to track trends
in household retirement saving activity and ownership of funds and other investments
inside and outside retirement accounts. Prior to joining ICI, Holden served as an
economist at the Federal Reserve Board of Governors. She has a PhD in economics
from the University of Michigan and a BA in mathematics and economics from Smith
College.
Statistical Research
Judy Steenstra, Senior Director of Statistical Research, oversees the collection and
publication of weekly, monthly, quarterly, and annual data on open-end mutual
funds, as well as data on closed-end funds, exchange-traded funds, unit investment
trusts, and the worldwide mutual fund industry. Steenstra joined ICI in 1987 and was
appointed Director of Statistical Research in 2000. She has a BS in marketing from The
Pennsylvania State University.
ICI Research
Staff and Publications
xii
STAFF AND PUBLICATIONS
ICI Research Department Staff
The ICI Research Department consists of 41 staff members, including economists, research
assistants, policy analysts, and data assistants. This staff collected and disseminated data for
all types of registered investment companies, offering detailed analyses of fund shareholders,
the economics of investment companies, and the retirement and education savings markets.

2010 Research Publications and Statistical Releases
ICI is the primary source of analysis and statistical information on the investment company industry.
In 2010, the Institute’s Research Department released almost 150 statistical reports examining
the broader investment company industry as well as specific segments of the industry: money
market funds, closed-end funds, exchange-traded funds, and unit investment trusts. In addition
to the annual Investment Company Fact Book, ICI published 20 research and policy reports in
2010, examining the industry, its shareholders, and industry issues. ICI also regularly compiles and
releases specialized statistical reports that measure mutual funds in the retirement, institutional,
and worldwide markets.
Industry and Financial Analysis Research Publications
»
“Trends in the Fees and Expenses of Mutual Funds, 2009,” Fundamentals, April 2010
»
“Trends in Proxy Voting by Registered Investment Companies, 2007–2009,” Perspective,
November 2010
Investor Research Publications
»
Enduring Confidence in the 401(k) System: Investor Attitudes and Actions, January 2010
»
Profile of Mutual Fund Shareholders, 2009, February 2010
»
“The Closed-End Fund Market, 2009,” Fundamentals, June 2010
»
The IRA Investor Profile: Traditional IRA Investors’ Contribution Activity, 2007 and 2008,
June 2010
»
“Ownership of Mutual Funds, Shareholder Sentiment, and Use of the Internet, 2010,”
Fundamentals, September 2010
»
“Characteristics of Mutual Fund Investors, 2010,” Fundamentals, September 2010

»
The IRA Investor Profile: Traditional IRA Investors’ Rollover Activity, 2007 and 2008,
December 2010
xiii
STAFF AND PUBLICATIONS
Retirement Research Publications
»
“The U.S. Retirement Market, Third Quarter 2009,” Fundamentals, January 2010
»
“The Role of IRAs in U.S. Households’ Saving for Retirement, 2009,” Fundamentals,
January 2010
»
“The U.S. Retirement Market, 2009,” Fundamentals, May 2010
»
“The U.S. Retirement Market, First Quarter 2010,” Fundamentals, August 2010
»
Defined Contribution Plan Participants’ Activities: First Quarter 2010, August 2010
»
“The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2009,”
Fundamentals, September 2010
»
“The U.S. Retirement Market, Second Quarter 2010,” Fundamentals, October 2010
»
Defined Contribution Plan Participants’ Activities: First Half 2010, October 2010
»
“A Look at Retirement Income After ERISA,” Perspective, November 2010
»
“401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2009,” Perspective,
November 2010
»

“The Role of IRAs in U.S. Households’ Saving for Retirement, 2010,” Fundamentals,
December 2010
Statistical Releases
Trends in Mutual Fund Investing
A monthly report that includes mutual fund sales, redemptions, assets, cash positions, exchange
activity, and portfolio transactions for the period.
Long-Term Mutual Fund Flows
A weekly report on aggregate estimates of net new cash flows to equity, hybrid, and bond funds.
Money Market Fund Assets
A weekly report on money market fund assets by type of fund.
Mutual Fund Assets in Retirement Accounts
A quarterly report that includes individual retirement account and defined contribution plan assets
and estimates of net new cash flows to mutual funds from retirement accounts.
xiv
STAFF AND PUBLICATIONS
Closed-End Fund Statistics
A quarterly report on closed-end fund assets, number of funds, issuance, and number of
shareholders.
Exchange-Traded Funds
A monthly report on ETF assets, number of funds, issuance, and redemptions of ETFs.
Unit Investment Trusts
A monthly report on UIT value and number of deposits of new trusts by type and maturity.
Worldwide Mutual Fund Market
A quarterly report that includes assets, number of funds, and net sales of mutual funds in countries
worldwide.
To find ICI research, visit our website at www.ici.org/research. The most recent ICI statistics and an
archive of statistical releases are available at www.ici.org/research#statistics. To subscribe to ICI’s
statistical releases, visit www.ici.org/pdf/stats_subs_order.pdf.
Acknowledgments
Publication of the 2011 Investment Company Fact Book was directed by Rochelle Antoniewicz,

Senior Economist, and Judy Steenstra, Senior Director of Statistical Research, working with Miriam
Moore, Senior Editor, and Jodi Weakland, Design Director.
Part One
Analysis and Statistics

3
Figures
FIGURES
Chapter 1
Overview of U.S Registered Investment Companies
FigureInvestmentCompanyTotalNetAssetsbyType. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ShareofHouseholdFinancialAssetsHeldinInvestmentCompanies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HouseholdNetInvestmentsinFundsBondsandStocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MutualFundsinHouseholdRetirementAccounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
InvestmentCompaniesChannelInvestmenttoStockBondandMoneyMarkets . . . . . . . . . . . . . . . . . . . .
NearlyThree-QuartersofFundComplexesWereIndependentFundAdvisers . . . . . . . . . . . . . . . . . . . . . . .
NumberofFundSponsors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FundComplexeswithPositiveNetNewCashFlowtoStockBondandHybridFunds . . . . . . . . . . . . . . . .
NumberofMutualFundsLeavingandEnteringtheIndustry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NumberofInvestmentCompaniesbyType . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
InvestmentCompanyIndustryEmployment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
InvestmentCompanyIndustryEmploymentbyJobFunction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
InvestmentCompanyIndustryEmploymentbyState . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter 2
Recent Mutual Fund Trends
FigureTheUSHadtheWorld’sLargestMutualFundMarket. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ShareofAssetsattheLargestMutualFundComplexes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NetFlowstoMutualFunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NetFlowstoEquityFundsRelatedtoGlobalStockPricePerformance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WillingnesstoTakeAbove-AverageorSubstantialInvestmentRiskbyAge . . . . . . . . . . . . . . . . . . . . . . . . .

TurnoverRateExperiencedbyEquityFundInvestors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NetFlowstoBondFundsRelatedtoBondReturns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TotalNetAssetsandNetFlowstoFundsofFunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NetFlowstoIndexFunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PercentofIndexFundAssetsWereInvestedinS&PIndexFunds . . . . . . . . . . . . . . . . . . . . . . . . . .
EquityIndexFunds’ShareContinuedtoRise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NetFlowstoMoneyMarketFunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NetFlowstoTaxableRetailMoneyMarketFundsRelatedtoInterestRateSpread . . . . . . . . . . . . . . . . . .
TotalNetAssetsandNetFlowstoTaxableUSGovernmentandNon-Government
InstitutionalMoneyMarketFunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MoneyMarketFundsManagedPercentofUSBusinesses’Short-TermAssetsin. . . . . . . . . . . .
4
2011 INVESTMENT COMPANY FACT BOOK
Chapter 3
Exchange-Traded Funds
FigureTotalNetAssetsandNumberofETFs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LegalStructureofETFs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CreationofanETF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NetIssuanceofETFShares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NetIssuanceofETFSharesbyInvestmentClassification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TotalNetAssetsofETFsConcentratedinLarge-CapDomesticStocks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NumberofETFs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NumberofCommodityandSectorETFs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TotalNetAssetsofCommodityandSectorETFs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ETF-OwningHouseholdsHeldaBroadRangeofInvestments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CharacteristicsofETF-OwningHouseholds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter 4
Closed-End Funds
FigureClosed-EndFundTotalNetAssetsIncreasedtoBillion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BondFundsWeretheLargestSegmentoftheClosed-EndFundMarket. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Closed-EndFundShareIssuance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NumberofClosed-EndFunds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BulkofClosed-EndFundTotalNetAssetsWasinCommonShareClasses . . . . . . . . . . . . . . . . . . . . . . . . . .
Closed-EndFundAMPSRedemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Closed-EndFund–OwningHouseholdsHeldaBroadRangeofInvestments . . . . . . . . . . . . . . . . . . . . . . . . .
Closed-EndFund–OwningHouseholdsHadAbove-AverageHouseholdIncomesand
FinancialAssets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter 5
Mutual Fund Fees and Expenses
FigureFeesandExpensesIncurredbyStockandBondMutualFundInvestorsHaveDeclined
byMoreThanHalfSince . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Front-EndSalesLoadsThatInvestorsPaidWereWellBelowMaximumFront-EndSales
LoadsThatFundsCharged . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FundShareholdersPaidLower-Than-AverageExpensesinStockFunds . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LeastCostlyStockFundsAttractMostoftheNetNewCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ExpenseRatiosforSelectedInvestmentObjectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FundSizesandAverageAccountBalancesVariedWidely . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
InvestorAssetsWereConcentratedinS&PIndexMutualFundswiththeLowestExpenseRatios . . .
Investors’NetPurchasesofS&PIndexMutualFundsWereConcentratedinLeastCostlyFunds . . . .
FundExpenseRatiosTendtoFallasFundTotalNetAssetsRise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mostb-FeesUsedtoPayforShareholderServices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b-FeesPaidReflectAssetGrowthandShiftinSourceofFinancialAdvisers’Compensation . . . . . .
NetNewCashFlowWasGreatestinNo-LoadShareClasses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TotalNetAssetsofLong-TermFundsWereConcentratedinNo-LoadShareClasses . . . . . . . . . . . . . . . .
5
FIGURES
Chapter 6
Characteristics of Mutual Fund Owners
FigurePercentofUSHouseholdsOwnedMutualFundsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CharacteristicsofMutualFundInvestors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MutualFundOwnershipIsGreatestAmong-to-Year-Olds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TheUSPopulationandMutualFundShareholdersAreGettingOlder . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OwnershipofMutualFundsIncreaseswithHouseholdIncome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer-SponsoredRetirementPlansAreIncreasinglytheSourceofFirstMutualFundPurchase . . . . .
PercentofMutualFund–OwningHouseholdsHeldSharesOutsideEmployer-Sponsored
RetirementPlans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
AboutHalfofMutualFundShareholdersUsedanAdviser. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TheAverageMutualFundAccountHasBeenOpenforFiveYears . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TheAverageShareholderTenurewithaFundCompanyIsEightYears . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MutualFundShareholderSentimentRisesandFallswithStockMarketPerformance . . . . . . . . . . . . . . . .
Households’WillingnesstoTakeInvestmentRiskTendstoMovewiththeS&PStockIndex. . . . . . .
Households’WillingnesstoTakeInvestmentRisk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MutualFundShareholders’ConfidenceRosein . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
InternetAccessIsWidespreadAmongMutualFund–OwningHouseholds . . . . . . . . . . . . . . . . . . . . . . . . .
MostMutualFundShareholdersUsedtheInternetforFinancialPurposes . . . . . . . . . . . . . . . . . . . . . . . . .
MutualFundShareholders’UseoftheInternetbyAgeEducationandIncomefor . . . . . . . . . . . . .
InstitutionalandHouseholdOwnershipofMutualFunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter 7
Retirement and Education Savings
FigureSocialSecurityBenefitFormulaIsHighlyProgressive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
USRetirementAssetsIncreasedin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ManyUSHouseholdsHadTax-AdvantagedRetirementSavings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
YoungerHouseholdsHaveHadHigherandFasterGrowingRatesofIRAorDefined
ContributionPlanOwnership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DefinedContributionPlanAssetsbyTypeofPlan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(k)AssetAllocationVariedwithParticipantAge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
AssetAllocationtoEquitiesVariedWidelyAmong(k)Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TargetDateFunds’(k)MarketShare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(k)BalancesTendtoIncreasewithParticipantAgeandJobTenure . . . . . . . . . . . . . . . . . . . . . . . . . . .
UseofLump-SumDistributionsfromDefinedContributionPlansatRetirement . . . . . . . . . . . . . . . . . . .

AVarietyofArrangementsMayBeUsedtoCompensate(k)ServiceProviders . . . . . . . . . . . . . . . . .
(k)StockMutualFundAssetsAreConcentratedinLower-CostFunds. . . . . . . . . . . . . . . . . . . . . . . . .
IRAAssets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MillionUSHouseholdsOwnedIRAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
RolloverActivityinTheIRAInvestorDatabase™ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RolloversAreOftenaSourceofAssetsforTraditionalIRAInvestors . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HouseholdsInvestedTheirIRAsinManyTypesofAssets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WithdrawalsfromTraditionalIRAsAreInfrequent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TraditionalIRAWithdrawalsAmongRetireesAreOftenUsedtoPayforLivingExpenses . . . . . . . . . . .
Households’MutualFundAssetsbyTypeofAccount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BulkofMutualFundRetirementAccountAssetsWasInvestedinEquities . . . . . . . . . . . . . . . . . . . . . . . .
TargetDateandLifestyleMutualFundAssetsbyAccountType . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SectionSavingsPlanAssets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CharacteristicsofHouseholdsSavingforCollege . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Investment companies held more than one-quarter
of U.S. corporate equities in 2010
27%
of U.S. corporate equities held
by investment companies
Chapter One
Overview of U.S Registered
Investment Companies
U.S registered investment companies play a significant role in the U.S.
economy and world financial markets. These funds managed over $13trillion
in assets at the end of 2010 for over 91 million U.S. investors. Funds supplied
investment capital in securities markets around the world and were among the
largest groups of investors in the U.S. stock, commercial paper, and municipal
securities markets.
8
2011 INVESTMENT COMPANY FACT BOOK

This chapter provides a broad overview of U.S registered investment companies—mutual funds, closed-end
funds, exchange-traded funds, and unit investment trusts—and their sponsors.
InvestmentCompanyAssetsin 
Americans’ContinuedRelianceonInvestmentCompanies 
RoleofInvestmentCompaniesinFinancialMarkets 
TypesofIntermediariesandNumberofInvestmentCompanies 
InvestmentCompanyEmployment 
Investment Company Assets in 2010
U.S registered investment companies managed $13.1 trillion at year-end 2010 (Figure 1.1), a
$943 billion increase from year-end 2009. Major U.S. stock indexes rose between 13 and 17 percent
during the year, significantly increasing total net assets of funds invested in domestic equity
markets. Gains in stock prices abroad had a similar effect on funds invested in foreign stocks.
However, gains in U.S. stock and bond funds that held international assets were moderated
by the strengthening of the U.S. dollar and the resulting decrease in the dollar value of their
foreign securities.
The rise in the value of U.S. fund assets was tempered somewhat by net outflows from money
market funds. Overall, mutual funds reported $297 billion of net outflows in 2010. Investors
pulled $525 billion from money market funds, but added $228billion to long-term mutual funds.
In addition, mutual fund shareholders reinvested $157billion of income dividends and $39 billion
of capital gains distributions that mutual funds paid out during the year. Investor demand for
exchange-traded funds (ETFs), unit investment trusts (UITs), and closed-end funds remained
fairly steady. In 2010, flows into ETFs were on pace with the previous year, with net share issuance
(including reinvested dividends) of $118 billion. UITs had new deposits of $31billion, while closed-
end funds issued $8 billion in new shares during 2010, both up from 2009.
Americans’ Continued Reliance on Investment Companies
Households are the largest group of investors in funds, and registered investment companies
managed 23 percent of households’ financial assets at year-end 2010, little changed from 2009
(Figure 1.2). The increase is largely due to the continued rebound in the value of stocks held in
equity and hybrid funds. As households have increased their reliance on funds, their demand for

directly held stocks has been decreasing for most of the decade with only one year of moderately
renewed interest in 2009 (Figure 1.3). Household demand for directly held bonds rebounded in
2010 after two years of substantially lower demand in 2008 and 2009. In contrast, over the past
decade, households’ net investment in registered investment companies has been substantially
9
OVERVIEW OF U.S REGISTERED INVESTMENT COMPANIES
FIGURE 1.1
Investment Company Total Net Assets by Type
Billions of dollars, year-end, 1995–2010
Mutual funds
1
Closed-end funds ETFs
2
UITs Total
3
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     

     
1
Mutual fund data include only mutual funds that report statistical information to the Investment Company Institute. The data
do not include mutual funds that invest primarily in other mutual funds.
2
ETF data prior to 2001 were provided by Strategic Insight Simfund. ETF data include investment companies not registered
under the Investment Company Act of 1940 and exclude ETFs that invest primarily in other ETFs.
3
Total investment company assets include mutual fund holdings of closed-end funds and ETFs.
Note: Components may not add to the total because of rounding.
Sources: Investment Company Institute and Strategic Insight Simfund
stronger than their net purchases of directly held bonds and stocks. Households invested an
average of $349 billion each year, on net, in registered investment companies versus average
annual sales, on net, of $333 billion in directly held stocks and bonds over the past 11 years.
The growth of individual retirement accounts (IRAs) and defined contribution (DC) plans,
particularly 401(k) plans, in conjunction with the important role that mutual funds play in these
plans, explains some of households’ increased reliance on investment companies during the past
two decades. At year-end 2010, 9 percent of household financial assets were invested in 401(k)
and other DC retirement plans, up from 6 percent in 1990. Mutual funds managed 54 percent
of the assets in these plans in 2010, up from 8 percent in 1990 (Figure 1.4). IRAs made up
10 percent of household financial assets, and mutual funds managed 47 percent of IRA assets
in 2010. Additionally, mutual funds managed $1 trillion in variable annuities outside of retirement
accounts, as well as $4 trillion of assets in taxable household accounts.