Financial overview of Investment Funds – France 2022Q2
Published on 5 September 2022
Dynamism of non-money market funds in Q2
- In Q2 2022: Net purchases of non-money market funds amount to 15 billion. Insurance companies and non-residents outside the euro area are the main net subscribers (+5 billion and +6 billion respectively, see table p. 2). In return, these funds invest mainly in mutual fund shares/units (+11 bn, see table p. 2), securities issued by residents (+19 bn) and, in particular, those issued by MFIs (+10 bn).
Net subscriptions to money market funds are slightly negative over the quarter (-2 billion). In particular, net purchases by non-money market funds (+7 billion) are more than offset by withdrawals by NFCs (-6 billion) and general government (-3 billion). These divestments are reflected by a decrease in their assets, notably long-term debt securities (-6 billion) and deposits and other net investments (-4 billion).
- Over a sliding year: Non-money market funds record net subscriptions of 9 billion (see table p.2) despite withdrawals of 15 billion from equity funds (see G1), offset by positive flows into real estate funds, employee savings funds and bond funds (+8 billion, +6 billion and +5 billion respectively, see G1). In an uncertain environment, managers are moving towards safer assets issued by MFIs and public administrations at the expense of those issued by non-financial companies. Long-term debt securities are favored (+16 billion) as well as mutual fund shares (+10 billion) at the expense of equities (-9 billion). On the investor side, resident insurance companies are the main subscribers (+16 billion).
Net subscriptions to money market funds are negative (-22 bn) over a sliding year (see table p.2, and -25 bn in unconsolidated flows, see G1). The portfolio adjustment results in a decrease in deposits and other net investments (-12 billion) in favor of investments in short-term securities (+6 billion). Non-financial companies are the main sellers (-18 billion, see table p.2).
- Focus: On page 3, a box reminds us of the statistical processing carried out on the funds newly collected in the new "OPC2" application. The inclusion of this population, which could not be included in the previous application, allows for a broader scope of funds participating in the preparation of Banque de France statistics on French funds.
Net subscriptions to money market funds are slightly negative over the quarter (-2 billion). In particular, net purchases by non-money market funds (+7 billion) are more than offset by withdrawals by NFCs (-6 billion) and general government (-3 billion). These divestments are reflected by a decrease in their assets, notably long-term debt securities (-6 billion) and deposits and other net investments (-4 billion).
- Over a sliding year: Non-money market funds record net subscriptions of 9 billion (see table p.2) despite withdrawals of 15 billion from equity funds (see G1), offset by positive flows into real estate funds, employee savings funds and bond funds (+8 billion, +6 billion and +5 billion respectively, see G1). In an uncertain environment, managers are moving towards safer assets issued by MFIs and public administrations at the expense of those issued by non-financial companies. Long-term debt securities are favored (+16 billion) as well as mutual fund shares (+10 billion) at the expense of equities (-9 billion). On the investor side, resident insurance companies are the main subscribers (+16 billion).
Net subscriptions to money market funds are negative (-22 bn) over a sliding year (see table p.2, and -25 bn in unconsolidated flows, see G1). The portfolio adjustment results in a decrease in deposits and other net investments (-12 billion) in favor of investments in short-term securities (+6 billion). Non-financial companies are the main sellers (-18 billion, see table p.2).
- Focus: On page 3, a box reminds us of the statistical processing carried out on the funds newly collected in the new "OPC2" application. The inclusion of this population, which could not be included in the previous application, allows for a broader scope of funds participating in the preparation of Banque de France statistics on French funds.
G1. Net subscriptions by type of funds (cumulative flows over 4 quarters - Billion €) ![]()
A - Equity funds
B - Bond funds
C - Mixed funds
D - Real estate funds
E - Employees' Savings funds
F - Money Market Funds
Investment funds assets and investors![]()
(EUR billion)
| Assets | Net flows (a) | Stocks Part (%) | Investors | Net flows (a) | Stocks Part (%) | |||||
| Q2 2022 | 4 moving quarters | Q2 2022 | Q2 2022 | Q2 2022 | 4 moving quarters | Q2 2022 | Q2 2022 | |||
| Non money market funds | Total | 15 | 9 | 1,428 | 100% | Total | 15 | 9 | 1,428 | 100% |
| by type of instrument | Debt securities up to 1 year | -4 | -4 | 17 | 1% | Resident | 7 | 9 | 1,280 | 90% |
| Debt securities over 1 year | 11 | 16 | 377 | 26% | Insurance corporations | 5 | 16 | 549 | 38% | |
| Equity | 2 | -9 | 547 | 38% | Households and NPSH | 2 | -7 | 300 | 21% | |
| Investment fund shares | 11 | 10 | 348 | 24% | Non money market funds | 2 | 0 | 147 | 10% | |
| Real estate assets | 4 | 3 | 100 | 7% | ||||||
| Net deposits and loans and other assets (b) | -8 | -6 | 40 | 3% | General Government | 2 | 3 | 141 | 10% | |
| by geographical area (c) | Resident | 19 | 26 | 661 | 51% | MFIs | -3 | -4 | 69 | 5% |
| Non-Resident euro area | 2 | -15 | 393 | 30% | Non-Financial corporations | 1 | 4 | 61 | 4% | |
| Non-Euro area | -1 | 1 | 234 | 18% | Other financial institutions | -2 | -3 | 11 | 1% | |
| by issuer (c) | Non-Financial corporations and others (d) | -5 | -52 | 598 | 46% | Non-Resident euro area | 2 | -3 | 110 | 8% |
| MFIs | 10 | 24 | 183 | 14% | MFIs | -4 | -8 | 71 | 5% | |
| General Government | 6 | 20 | 116 | 9% | Non MFIs | 6 | 4 | 39 | 3% | |
| Others (e) | 8 | 20 | 391 | 30% | Non-Euro area | 6 | 3 | 38 | 3% | |
| of which non money market funds | 3 | 3 | 278 | 22% |
| Assets | Net flows (a) | Stocks Part (%) | Investors | Net flows (a) | Stocks Part (%) | |||||
| Q2 2022 | 4 moving quarters | Q2 2022 | Q2 2022 | Q2 2022 | 4 moving quarters | Q2 2022 | Q2 2022 | |||
| Money Market Funds (f) | Total | -2 | -22 | 320 | 100% | Total | -2 | -22 | 320 | 100% |
| by type of instrument | Debt securities up to 1 year | 8 | 6 | 208 | 65% | Resident | 1 | -21 | 247 | 77% |
| Debt securities over 1 year | -6 | -16 | 53 | 17% | Insurance corporations | 2 | -1 | 101 | 31% | |
| Investment fund shares | 0 | 0 | 1 | 0% | Non-Financial corporations | -6 | -18 | 48 | 15% | |
| Net deposits and loans and other assets (b) | -4 | -12 | 58 | 18% | Non money market funds | 7 | 6 | 69 | 21% | |
| by geographical area (c) | Resident | 0 | -18 | 110 | 42% | Households and NPSH | 0 | -1 | 3 | 1% |
| Non-Resident euro area | 0 | 7 | 85 | 33% | General Government | 1 | -3 | 11 | 3% | |
| Non-Euro area | 1 | 0 | 66 | 25% | Credit Institutions | 0 | 4 | 7 | 2% | |
| by issuer (c) | MFIs | 12 | -11 | 158 | - | Other financial institutions | -3 | -7 | 9 | 3% |
| Non-Financial corporations and others (d) | -3 | 1 | 62 | 24% | Non-Resident euro area | -2 | 6 | 67 | 21% | |
| Others (e) | -5 | 10 | 32 | 12% | MFIs | -2 | 5 | 62 | 19% | |
| General Government | -3 | -10 | 10 | 4% | Non MFIs | 1 | 1 | 5 | 2% | |
| Non-Euro area | -1 | -7 | 6 | 2% |
Note: As from this publication, real estate funds are integrated in data; Rounding differences mean that an aggregate may not be exactly equal to the sum of its components.
Source: Banque de France
(a) Variation of outstanding amounts for Money Market Funds
(b) net loans and net other assets include financial derivatives, non- financial assets and other receivables, net of other liabilities
(c) excluding loans and other net assets ; only securities portfolio
(d) Others added to Non-Financial Corporations include others Financial Institutions of the rest of the world (non MFIs as Insurance Corporations)
(e) Others : Non Money Market funds, Insurance and other Financial Institutions
(f) Consolidated Data: consolidated outstanding of money market fund shares or units do not include the resident securities held by money market funds themselves
(g) Quarterly holdings data are provisional and will be revised next quarter
(b) net loans and net other assets include financial derivatives, non- financial assets and other receivables, net of other liabilities
(c) excluding loans and other net assets ; only securities portfolio
(d) Others added to Non-Financial Corporations include others Financial Institutions of the rest of the world (non MFIs as Insurance Corporations)
(e) Others : Non Money Market funds, Insurance and other Financial Institutions
(f) Consolidated Data: consolidated outstanding of money market fund shares or units do not include the resident securities held by money market funds themselves
(g) Quarterly holdings data are provisional and will be revised next quarter
Focus - Statistical treatment of newly collected funds in the OPC2 application
Since the beginning of 2022, statistics on investment funds have been compiled within the framework of a new "OPC2" application, which has in particular enabled the scope of collection to be extended. In particular, this involves the integration of new legal forms and new types of funds (in particular specialized professional funds) and the reclassification of certain entities. In total, between the Q4 2021 and Q1 2022 closings, the population of investment funds participating in the collection of these statistics increases significantly by around 2,000 funds to more than 12,000 funds. In particular, the population of private equity funds grows by more than 800 funds and new SPFs also account for more than 700 funds. These changes also increase the balance sheet total compared to the old publications, and change the distribution. In accordance with the statistical methodology, they are treated as "other volume changes" or "reclassifications" so as not to affect the reading of flows and valuations.
Between Q4 2021 and Q1 2022, these "reclassifications" contribute to an increase in total net assets of investment funds of 94 billion. "Other funds" account for 111 bn (mainly due to the contribution of the new SPFs for 75 bn and venture funds for 20 bn), while mixed funds decrease by 36 billion. In terms of assets, the reclassifications are divided mainly between investments in equities for 35 billion, 22 billion in mutual fund shares and 20 billion in debt securities (See two graphs on PDF publication, A - Reclassifications of net assets by fund category, B - Reclassifications of investments by instrument category).
Between Q4 2021 and Q1 2022, these "reclassifications" contribute to an increase in total net assets of investment funds of 94 billion. "Other funds" account for 111 bn (mainly due to the contribution of the new SPFs for 75 bn and venture funds for 20 bn), while mixed funds decrease by 36 billion. In terms of assets, the reclassifications are divided mainly between investments in equities for 35 billion, 22 billion in mutual fund shares and 20 billion in debt securities (See two graphs on PDF publication, A - Reclassifications of net assets by fund category, B - Reclassifications of investments by instrument category).
Download the PDF version of the document
PAN_FIN_OPC_2247_en__SI_Panorama_financier_OPC_T22022_EN.pdf