U.S. tax-exempt institutions put a net $51 billion into cross-border investments last year - tying the record set in 1996, according to InterSec Research. That brought total foreign/global holdings by U.S. funds to $556 billion. However, because of the runup in the U.S. market, the percentage of cross-border investments in institutions' total pool of funds actually shrank. It fell to 10.2% at the end of 1997, vs. 10.6% the year before.
InterSec expects continued interest in cross-border investing. By the end of 2002, it expects international/global assets to reach just more than $1 trillion by the end of 2002, comprising 14.4% of U.S. pension fund assets.