Financial overview of Investment Funds – France 2023Q4
Published on 3 April 2024
Driven by higher interest rates, outstanding amounts of money-market fund shares increase by 55 billion euros in 2023 and portfolio arbitrages were carried out
- Driven by rising interest rates, investors returned to the money market in 2023, with net subscriptions of money market fund shares of 43 billion euros) (cf. G1, for a 55 billion change in assets under management, cf. table p.2), following a 19 billion decline in 2022. The annual performance of French money-market funds, which was virtually nil a year ago, reached +3.38% in 2023. Outstanding amounts of MMF shares stand at 397 billion, versus 342 billion in 2022.
Holdings of MMF shares: Over the year, resident holdings increased mainly for insurance companies (+ 35 billion), and to a lesser extent for non-money market UCIs and NFCs (+ 8 and + 7 billion respectively). Assets held by eurozone MFIs also rose by 7 billion.
Changes in portfolio assets: In 2023, French money market funds acquired 21 billion in short-term debt securities, 17 billion in long-term debt securities, and increased their deposits and other net investments by 16 billion. - Non-money market funds, on the other hand, recorded a net outflow of 20 billion (see table p.2), due to withdrawals from equity and mixed funds (- 24 billion and - 17 billion, see G1), partially offset by positive flows into bond funds, employee savings funds and real estate funds (+ 9 billion, + 7 billion and + 3 billion respectively).
Holdings of non-MMF shares: Resident households recorded net sales of non-money market shares for 7 billion, as did non-money market funds. Non-resident money-market financial institutions in the eurozone also sold 11 billion in net terms.
Changes in portfolio assets: In 2023, French non-money market funds invested mainly in long-term debt securities (+ 19 billion), selling equities (- 16 billion) and reducing their deposits and other net investments (- 17 billion). They favored non-resident issuers (+ 13 billion) to residents (- 14 billion).
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 (%) | |||||
| Q4 2023 | 4 moving quarters | Q4 2023 | Q4 2023 | Q4 2023 (g) | 4 moving quarters | Q4 2023 | Q4 2023 | |||
| Non money market funds | Total | -5 | -20 | 1,516 | 100% | Total | -5 | -20 | 1,516 | 100% |
| by type of instrument | Debt securities up to 1 year | -1 | 0 | 23 | 1% | Resident | -3 | -7 | 1,368 | 90% |
| Debt securities over 1 year | 0 | 19 | 412 | 27% | Insurance corporations | -7 | -1 | 597 | 39% | |
| Equity | 1 | -16 | 604 | 40% | Households and NPSH | 1 | -7 | 300 | 20% | |
| Investment fund shares | -2 | -4 | 365 | 24% | Non money market funds | -4 | -7 | 177 | 12% | |
| Real estate assets | 1 | -3 | 92 | 6% | ||||||
| Net deposits and loans and other assets (b) | -5 | -17 | 21 | 1% | General Government | 6 | 3 | 159 | 10% | |
| by geographical area (c) | Resident | -3 | -14 | 716 | 51% | MFIs | 1 | 0 | 47 | 3% |
| Non-Resident euro area | 2 | 11 | 436 | 31% | Non-Financial corporations | -1 | 2 | 69 | 5% | |
| Non-Euro area | 0 | 2 | 251 | 18% | Other financial institutions | 1 | 2 | 20 | 1% | |
| by issuer (c) | Non-Financial corporations and others (d) | 4 | -9 | 656 | 47% | Non-Resident euro area | 0 | -10 | 106 | 7% |
| MFIs | -4 | 1 | 199 | 14% | MFIs | -1 | -11 | 65 | 4% | |
| General Government | -3 | 0 | 118 | 8% | Non MFIs | 1 | 2 | 41 | 3% | |
| Others (e) | 2 | 7 | 430 | 31% | Non-Euro area | -2 | -3 | 42 | 3% | |
| of which non money market funds | -2 | 1 | 295 | 21% |
| Assets | Net flows (a) | Stocks Part (%) | Investors | Net flows (a) | Stocks Part (%) | |||||
| Q4 2023 | 4 moving quarter | Q4 2023 | Q4 2023 | Q4 2023 (g) | 4 moving quarters | Q4 2023 | Q4 2023 | |||
| Money Market Funds (f) | Total | 13 | 55 | 397 | 100% | Total | 13 | 55 | 397 | 100% |
| by type of instrument | Debt securities up to 1 year | -5 | 21 | 268 | 67% | Resident | 10 | 53 | 298 | 75% |
| Debt securities over 1 year | 10 | 17 | 51 | 13% | Insurance corporations | 6 | 35 | 114 | 29% | |
| Investment fund shares | 0 | 0 | 1 | 0% | Non-Financial corporations | 8 | 7 | 66 | 17% | |
| Net deposits and loans and other assets (b) | 9 | 16 | 78 | 20% | Non money market funds | 2 | 8 | 80 | 20% | |
| by geographical area (c) | Resident | 2 | 21 | 152 | 47% | Households and NPSH | -1 | 3 | 7 | 2% |
| Non-Resident euro area | 2 | 15 | 105 | 33% | General Government | 0 | 5 | 23 | 6% | |
| Non-Euro area | 0 | 3 | 63 | 20% | Credit Institutions | 1 | -1 | 4 | 1% | |
| by issuer (c) | MFIs | 1 | 55 | 227 | 71% | Other financial institutions | -6 | -4 | 4 | 1% |
| Non-Financial corporations and others (d) | -1 | -10 | 53 | 17% | Non-Resident euro area | 4 | 5 | 94 | 24% | |
| Others (e) | 3 | -2 | 31 | 10% | MFIs | 5 | 7 | 87 | 22% | |
| General Government | 1 | -3 | 8 | 3% | Non MFIs | -1 | -3 | 6 | 2% | |
| Non-Euro area | -1 | -2 | 5 | 1% |
Note: 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
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