Financial overview of Investment Funds – France 2018Q4

Decline in non-money market funds outstanding for the first time since 2011
  • Over one year :sales of shares/units of non-money market funds outweigh subscriptions by a net amount of -36 billion, mainly resulting from equity funds (-21 billion, see graphs G1) and mixed funds (-11 billion). These outflows, unprecedented since 2013, are largely driven by the relocation of funds abroad (-25 billion). By contrast, real estate funds and employee savings funds record positive inflows (respectively +7 and +3 billion). Overall, non-money market funds mainly sell shares issued by non-residents (-32 billion, graph G2).


    MMFs also record outflows (-11 billion). These repurchases result in net sales of securities issued by credit institutions (-13 billion) and a reallocation of long-term debt securities towards deposits holdings.
  • 4th quarter 2018 :Non-money market funds record outflows for the fourth consecutive quarter (-18 billion, see table p.2), mainly due to withdrawals by resident investors (-15 billion). The repayment of funds shares result in the sales of long-term debt securities (-9 billion) and equities (-6 billion) in particular. The securities sold are mainly issued by non-residents (-13 billion) and, in terms of sector, by non-financial corporations (-16 billion).


    MMFs record an outflow of EUR 10 billion as a result of withdrawals from resident investors (-14 billion), partially offset by net subscriptions from non-euro area investors (+4 billion).
  • Focus - Investment funds in the Euro area: (graphs G3 page3): the outstanding amount of non-money market funds in the euro area falls by -2.4% in 2018 for the first time since 2011, due to losses recorded (-5.3%) and despite positive net subscriptions (+2.1%). French funds record over the year a negative impact of €103 billion or -7.9% due to a valuation effect of -5.2%, a relocation effect of -1.9% and a subscription effect of -0.9%. Its weight in the Eurozone falls by 0.8 percentage point year-on-year (10.9% at the end of 2018 after 11.7% at the end of 2017).
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
G2. Investment funds - Net investments by resident issuer sectors ( cumulative flows over 4 quarters - Billion €)
A- In equities
B - In debt securities
Investment funds assets and investors
(EUR billion)
Assets Net flows (a) Stocks Part (%) Investors Net flows (a) Stocks Part (%)
Q4 2018 4 moving quarters Q4 2018 Q4 2018 Q2 2018 (g) 4 moving quarters Q2 2018 Q2 2018
Non money market funds Total -18 -36 1,198 100% Total -18 -36 1,198 100%
by type of instrument Debt securities up to 1 year -2 5 33 3% Resident -15 -9 1,054 88%
Debt securities over 1 year -9 -15 351 29% Insurance corporations -8 3 449 38%
Equity -6 -34 411 34% Households and NPSH -2 -3 241 20%
Investment fund shares -2 4 299 25% Non money market funds -2 -5 140 12%
Real estate assets -1 5 76 6%
Net deposits and loans and other assets (b) 1 -1 29 2% General Government -3 0 127 11%
by geographical area (c) Resident -6 -5 535 49% MFIs 2 4 49 4%
Non-Resident euro area -7 -15 369 34% Non-Financial corporations -1 -1 41 3%
Non-Euro area -6 -20 188 17% Other financial institutions 0 -8 6 1%
by issuer (c) Non-Financial corporations and others (d) -16 -40 518 47% Non-Resident euro area -3 -24 121 10%
MFIs 0 -4 163 15% MFIs -3 -24 110 9%
General Government 2 5 110 10% Non MFIs 0 0 10 1%
Others (e) -6 -1 302 28% Non-Euro area -1 -3 24 2%
of which non money market funds -4 2 231 21%


Assets Net flows (a) Stocks Part (%) Investors Net flows (a) Stocks Part (%)
Q4 2018 4 moving quarters Q4 2018 Q4 2018 Q4 2018 (g) 4 moving quarters Q4 2018 Q4 2018
Money Market Funds (f) Total -10 -12 301 100% Total -10 -12 301 100%
by type of instrument Debt securities up to 1 year -12 6 170 56% Resident -14 -9 250 83%
Debt securities over 1 year -1 -11 82 27% Insurance corporations -13 -5 85 28%
Investment fund shares 1 0 2 1% Non-Financial corporations 2 1 71 24%
Net deposits and loans and other assets (b) 0 4 48 16% Non money market funds 2 2 66 22%
by geographical area (c) Resident -7 3 109 43% Households and NPSH -1 -3 5 2%
Non-Resident euro area -3 -11 79 31% General Government 0 -3 10 3%
Non-Euro area -2 4 66 26% Credit Institutions -5 -1 8 3%
by issuer (c) MFIs -12 -5 174 69% Other financial institutions 1 1 6 2%
Non-Financial corporations and others (d) 5 11 56 22% Non-Resident euro area 0 -2 45 15%
Others (e) -4 -8 21 8% MFIs 1 -2 40 13%
General Government -1 -4 3 1% Non MFIs -1 0 5 2%
Non-Euro area 4 0 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
Focus
G3. EUROPEAN OVERVIEW OF NON-MONETARY FUNDS
A - Balance sheet (Q2-2018)
B - Breakdown of Eurozone outstanding by country (Q4 2018 - € bn)
C. Outstanding amounts 2010 - 2018 (€bn - % of total) and change in market share

dec. 2010 - 5791
dec. 2018 - 10990
*pp : percentage point of market share
D - Outstanding variation in France since 2010
(cumulative flows over 12 months)
E - Outstanding variation by country in 2018
(cumulative flows over 12 months)
More information on: methodology, long series, calendar
All statistical time series published by the Banque de France can be accessed on Webstat Banque de France
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STAT INFO - Q4 2018
Financial overview of Investment Funds

Publication associated with: Performance of Investment Funds - France
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Financial overview of Investment Funds – France
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Published on Tuesday, February 26, 2019