Investments

OWNERSHIP OF EQUITIES AND CORPORATE AND MUNICIPAL BONDS

Equity and debt markets offer individuals and institutional investors the opportunity to participate in the development and expansion of publicly traded companies and municipalities. Equity investments provide an ownership interest in a company through stocks. Debt securities, generally bonds, represent money a corporation or municipality has borrowed from investors and must repay at a specific time and usually at a specific interest rate. Municipal bonds may be tax-exempt.

 

HOLDINGS OF U.S. CORPORATE EQUITIES, 2007-2011 (1)

($ billions, market value, end of year)

  2007 2008 2009 2010 2011 Percent change, 2007-2011
Total $25,580.9 $15,640.5 $20,123.2 $23,249.5 $22,522.2 -12.0%
Household sector 9,614.8 5,742.5 7,397.6 8,579.2 8,356.8 -13.1
State and local governments 108.0 82.1 117.7 109.9 106.7 -1.2
Federal government 0.0 188.7 67.4 49.9 57.5 NA
Rest of the world (2) 2,812.2 1,806.6 2,477.2 2,926.1 2,948.1 4.8
Monetary authority 0.0 0.0 25.1 26.4 0.0 NA
U.S.-chartered depository institutions (3) 88.8 33.8 63.6 73.6 67.4 -24.1
Foreign banking offices in U.S. 0.0 0.0 0.0 0.1 0.0 NA
Property/casualty insurance companies 236.2 193.3 219.8 219.2 224.4 -5.0
Life insurance companies 1,464.6 1,001.7 1,208.5 1,402.6 1,443.0 -1.5
Private pension funds 2,673.3 1,599.7 1,835.7 2,081.1 2,004.6 -25.0
State and local govt retirement funds 2,013.7 1,237.9 1,549.8 1,782.5 1,690.6 -16.0
Federal govt retirement funds 149.1 85.6 119.4 143.7 137.7 -7.6
Mutual funds 5,476.9 3,014.1 4,136.2 4,762.7 4,427.2 -19.2
Closed-end funds 144.9 71.3 86.0 95.1 93.8 -35.3
Exchange-traded funds 573.7 473.9 669.9 853.9 863.5 50.5
Brokers and dealers 224.8 109.2 124.2 117.2 100.9 -55.1
Funding corporations 0.0 0.0 25.1 26.4 0.0 NA

(1) Excludes open-end mutual fund shares.
(2) Holdings of U.S. issues by foreign residents.
(3) Includes savings banks and commercial banks.

NA=Not applicable.

Source: Board of Governors of the Federal Reserve System, June 7, 2012.

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HOLDINGS OF U.S. CORPORATE EQUITIES, 2011 (1)

(1) Market value, end of year; excludes open-end mutual fund shares.
(2) Holdings of U.S. issues by foreign residents.

Source: Board of Governors of the Federal Reserve System, June 7, 2012.

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HOLDINGS OF U.S. CORPORATE AND FOREIGN BONDS, 2007-2011

($ billions, end of year)

  2007 2008 2009 2010 2011 Percent change, 2007-2011
Total assets $11,543.0 $11,118.3 $11,576.9 $11,538.5 $11,587.0 0.4%
Household sector 2,129.8 2,066.2 2,227.0 1,955.7 1,887.1 -11.4
State and local governments 140.7 137.5 144.8 154.3 150.1 6.7
Federal government 0.0 0.0 0.6 0.9 0.8 NA
Rest of the world (1) 2,719.1 2,354.0 2,465.3 2,488.6 2,416.4 -11.1
U.S.-chartered depository institutions (2) 714.6 650.5 667.1 548.9 551.8 -22.8
Foreign banking offices in U.S. 369.5 401.6 244.9 233.9 234.5 -36.5
Banks in U.S.-affiliated areas 0.5 0.5 2.0 0.6 4.2 740.0
Credit unions 34.6 25.7 18.6 3.7 4.1 -88.2
Property/casualty insurance companies 282.9 267.5 298.3 322.6 361.0 27.6
Life insurance companies 1,862.6 1,817.0 1,927.2 2,030.2 2,128.7 14.3
Private pension funds 357.4 400.1 442.9 440.1 440.9 23.4
State and local govt retirement funds 297.0 312.9 308.6 312.4 320.9 8.0
Federal government retirement funds 3.0 2.9 3.0 3.2 3.7 23.3
Money market mutual funds 376.8 228.0 169.9 154.2 129.6 -65.6
Mutual funds 889.9 959.9 1,126.8 1,275.4 1,465.8 64.7
Closed-end funds 74.0 48.7 54.0 58.1 56.2 -24.1
Exchange-traded funds 13.8 27.7 55.3 74.0 100.4 627.5
Government-sponsored enterprises 464.4 386.6 310.8 293.9 260.5 -43.9
Finance companies 189.4 192.4 198.6 179.0 183.8 -3.0
Real Estate Investment Trusts 34.4 11.7 15.5 20.8 22.1 -35.8
Brokers and dealers 382.8 123.8 154.4 189.5 103.7 -72.9
Holding companies 35.9 35.8 31.1 38.3 18.3 -49.0
Funding corporations 170.0 667.3 710.2 760.1 742.4 336.7

(1) Holdings of U.S. issues by foreign residents.
(2) Includes savings banks and commercial banks.

NA=Not applicable.

Source: Board of Governors of the Federal Reserve System, June 7, 2012.

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INSURANCE COMPANY HOLDINGS OF U.S. MUNICIPAL SECURITIES AND LOANS, 2009-2013

($ billions, end of year)

  2009 2010 2011 2012 2013
Property/casualty insurance companies $369.4 $348.4 $331.0 $328.1 $325.8
Life insurance companies 73.1 112.3 121.8 131.5 141.2
Total $442.5 $460.7 $452.8 $459.6 $467.0

Source: Board of Governors of the Federal Reserve System, June 5, 2014.

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MUTUAL FUND INVESTMENTS

Mutual fund assets reached a record $8.0 trillion at the end of 2011, up from $7.8 trillion at the end of 2010, according to the Federal Reserve. The household sector holds the largest share of mutual funds, with 58 percent of the industry’s assets. In 2011, 52.3 million U.S. households owned mutual funds, accounting for 44 percent of all households, according to the Investment Company Institute. Households headed by 35- to 64-year olds accounted for about two-thirds (66 percent) of mutual-fund owning households in 2011. Households headed by 45- to 54-year olds were the most likely to own mutual funds. In 2011 about one-quarter (24 percent) of households holding mutual funds were in this group, compared with 21 percent each for 35- to 44-year olds and 55- to 64-year olds. (See page __ for further information on the mutual fund sector.)

 

MUTUAL FUNDS BY HOLDER, 2007 AND 2011 (1)

($ billions, market value, end of year)

  2007 2011
  Amount Percent of total Amount Percent of total
Household sector $4,610.9 58.9% $4,652.2 58.1%
Private pension funds 2,110.6 27.0 2,144.6 26.8
State and local govt retirement funds 296.4 3.8 247.3 3.1
Nonfinancial corporate business 178.0 2.3 167.5 2.1
Life insurance companies 188.4 2.4 150.1 1.9
U.S.-chartered depository institutions (2) 29.6 0.4 41.7 0.5
State and local governments 32.8 0.4 30.0 0.4
Property-casualty insurance companies 6.8 0.1 5.5 0.1
Credit unions 2.1 (3) 1.8 (3)
Rest of the world (4) 373.5 4.8 559.9 7.0
Total shares at market value $7,829.0 100.0% $8,000.5 100.0%

(1) Open-end investment companies. Excludes money market mutual funds, exchange-traded funds and variable annuity funding vehicles.
(2) Includes savings banks and commercial banks.
(3) Less than 0.1 percent.
(4) Holdings of U.S. issues by foreign residents.

Source: Board of Governors of the Federal Reserve System, June 7, 2012.

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OWNERSHIP OF FEDERAL GOVERNMENT DEBT

The buying and selling of government securities is a crucial component of each of the financial sectors. Debt is issued and sold based on the changing needs of the federal government. The average daily trading volume in U.S. Treasury securities was $469.2 billion in June 2012, down from $612.7 billion a year earlier, according to the Securities Industry and Financial Markets Association.

 

ESTIMATED OWNERSHIP OF U.S. PUBLIC DEBT SECURITIES, 2002-2011

($ billions, end of year)

Year Total Individuals Mutual funds/ trusts (1) Banking institutions (2) Insurance companies Pension funds (3) U.S. monetary authorities State and local governments Foreign and international Other (4)
2002 $3,609.8 7.3% 7.8% 2.7% 4.5% 8.7% 17.4% 9.8% 35.6% 6.1%
2003 4,008.2 10.2 7.1 3.8 4.2 8.0 16.6 9.1 37.8 3.3
2004 4,370.7 11.3 5.9 1.1 4.3 7.4 16.4 8.9 41.5 3.2
2005 4,678.0 10.1 5.6 0.4 4.3 7.2 15.9 10.2 42.4 3.9
2006 4,861.7 8.2 5.4 0.3 4.1 7.5 16.0 10.4 43.7 4.3
2007 5,099.2 5.2 7.5 0.6 2.8 7.8 14.5 10.3 46.6 4.7
2008 6,338.2 4.0 12.6 4.0 2.7 7.0 7.5 7.5 51.3 3.3
2009 7,781.9 10.5 9.1 3.4 2.9 7.8 10.0 6.3 47.2 2.9
2010 9,361.5 12.9 7.4 3.5 2.7 7.5 10.9 5.4 46.8 2.9
2011 10,428.3 10.7 8.3 3.6 2.5 7.4 16.0 4.3 44.6 2.7

(1) Includes mutual funds, money market funds, closed-end funds and exchange-traded funds.
(2) Includes commercial banks, savings institutions, credit unions, and brokers and dealers.
(3) Includes state and local government, federal government and private pension funds.
(4) Includes nonfinancial corporate institutions, nonfarm noncorporate institutions, government-sponsored enterprises and asset-backed securities issuers.

Source: Board of Governors of the Federal Reserve System, June 7, 2012.

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