Financial overview of Investment Funds – France 2016Q4

Real estate funds assets reach ?95 billion and almost two thirds of buildings are located in Paris area
Real estate funds: Especially due to strong subscriptions, their total balance sheet reaches EUR95 billion (after EUR72 billion in 2015, i.e. 32% over the year) of which EUR49 billion of directly held buildings. Half of these properties are offices. Regardless the nature of the building, the region Ile-de-France (including Paris) accounts for by almost two thirds (63%) of holdings.

Money Market Funds: in 2016, net inflows reach EUR25 billion (compared with +EUR21 billion in 2015). Subscriptions mainly come from resident and non-resident financial corporations (including insurance companies). Net investments are primarily oriented towards short-term debt securities (+EUR32 billion against -EUR7 billion for long-term maturities) contrasting with the two previous years. These assets reallocations result in a reduction of the average maturity of the debt portfolio (213 days at end 2016 vs. 240 days at end 2015). Finally, money market funds holdings are invested for 59% abroad.

Non-Money Market Funds: Despite positive net subscriptions in the last quarter 2016 (+EUR3 billion), net sales are recorded for the whole year (-EUR5 billions). These outflows arise from non-resident (outside the euro area) and residents (respectively -EUR7 billion and - EUR5 billion) while euro area investors are net buyers (+EUR7 billion). Funds invest mainly in short term debt securities (+EUR5 billion) and in other investment funds (+EUR8 billion) whereas they sell long term debt securities (-EUR7 billion) and equities (-EUR4 billion).

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Financial overview of Investment Funds – France
  • Published on 02/24/2017
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Published on Friday, February 24, 2017