We have been transformed from a small cottage industry to a major means by which Americans save and invest for their futures. This transformation has not been sudden, but has occurred over many years at a steady pace. Industry assets have grown from less than 450 million dollars in 1940, to 2.5 billion in 1950, to 47 billion in 1970, to 134 billion in 1980, to more than one trillion dollars in 1990, to over four and one-half trillion dollars today. Many factors have contributed to this long story of success, including strong securities markets, innovations in fund products and services, changes in retirement laws, and new distribution systems. But the key to our success is widespread public confidence in mutual fund investing.
Public confidence is the reason for our industry's steady growth.
Public confidence explains why fund shareholders have not panicked in market breaks. Public confidence permits us to obtain legislative and regulatory reforms. These reforms were possible because legislators, regulators, and the public at large have confidence in our industry. This widespread public confidence in mutual funds is no accident. Our industry has earned the trust of American investors and policymakers because, for over a half century, we have operated under a regulatory regime and a fiduciary culture that put investors first.