- After an exceptional inflow of 80 billion in 2020, money market funds show an outflow of 12 billion in 2021 (see table p.2, and -13 billion in non-consolidated flows, see G1), thus returning to the trends recorded in previous years (see focus B). This development is related to the negative annual net performance of money market funds of -0.48% in 2021. For the eurozone, money market funds outstanding (focus D) changes little over the year, standing at 1,452 billion (+2%). The market share of French money market funds is 26%, with outstanding of 379 billion (non-consolidated data).
Residents are net sellers of French money market funds for 31 billion, notably NFCs for 14 billion, partly offset by net subscriptions by non-resident eurozone MFIs for 22 billion. In terms of investment structure, deposits and other net investments, which had risen sharply in 2020 (+52 billion), contract by 23 billion in 2021. Within the portfolio, funds give preference to short-term debt securities for 16 billion. In addition, funds increase their holdings of securities issued by credit institutions (+12 billion) at the expense of those issued by general government (-13 billion).
- Non-money market funds record net subscriptions of 10 billion in 2021 (see table p.2). These subscriptions are for all funds (especially bond funds for +9 billion and mixed funds for + 6 billion) but with the exception of equity funds, which record a net outflow of -9 billion (see G1). The increase in the value of non-money market funds led to a significant rise of 134 billion in assets under management, a large part of which come from equity funds and other funds (+73 billion and +31 billion respectively; see Focus A). With a 10% increase in assets under management, French non-money market funds grow less than those of the euro zone, which, with assets under management of 16,258 billion at the end of 2021 (Focus D), record an increase of 17%.
Resident insurance companies and public administrations are the main subscribers (+8 billion and +6 billion). In contrast, resident and eurozone MFIs are withdrawing (-11 billion and -6 billion respectively). On the asset side, investments in long-term debt securities are favored (+10 billion) at the expense of deposits and other net investments (-5 billion).