Financial overview of Investment Funds – France 2022Q4
Published on 29 March 2023
MMFs records outflows of 18 billion euros in 2022
- MMFs records 18 billion euros in net outflows in 2022, after -13 billion in 2021 (see G1), and despite net inflows of +38 billion in Q4. The annual performance of MMFs is positive again (at +0.03%). The stock of euro area MMFs (focus D) increases slightly year-on-year at 1,526 billion (+3.1%). The market share of French money market funds stands at 24% in 2022, down 2 points compared to the end of 2021.
Holdings of MMF shares: Insurance companies and NFCs are the main sellers of MMF shares in 2022 (-21 billion and -14 billion respectively) whereas non-monetary funds, public sector entities and non-residents of the euro zone are net buyers (+11 billion, +6 billion and +5 billion respectively).
Assets held in portfolio: French MMFs reduce their exposure to long-term debt securities (bonds and MTN) by -25 billion over the year, in favor of short-term debt securities (+13 €B). In a context of rising uncertainties, they reduce their exposure to non-euro zone assets (-17 €B) and to a lesser extent to those issued within other euro zone countries (-3 €B).
- Non-monetary funds record positive inflows in 2022 on employee savings funds (+9 billion) and real estate funds (+6 billion) while equity and mixed funds record net outflows (-7 billion each). Their valuation falls by 123 billion (see focus Graph A) due to the combined effect of decreasing equity markets (STOXX50 -10% in 2022) and the rise in interest rates. French non-monetary funds (-8.3% in 2022) are holding up a little better than the euro zone average, down 10.9% over 2022 (see focus Graph D).
Holdings of IF shares: Resident insurance companies are net sellers of non-monetary funds (-13 billion) whereas households and public administrations are net buyers (+8 billion and +6 billion). Holdings by non-monetary funds increased by +5 €B.
Assets held in the portfolio: Non-monetary funds mostly increase their holdings in debt securities (+15 billion over the year) and investment funds shares/units (+6 billion) while divesting from equities (-8 billion). Like the MMF sector, investment funds favor resident issuers (+17 billion) over non-residents (-4 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 2022 | 4 moving quarters | Q4 2022 | Q4 2022 | Q4 2022 (g) | 4 moving quarters | Q4 2022 | Q4 2022 | |||
| Non money market funds | Total | -3 | 0 | 1,438 | 100% | Total | -3 | 0 | 1,438 | 100% |
| by type of instrument | Debt securities up to 1 year | 0 | 5 | 24 | 2% | Resident | -3 | 6 | 1,279 | 89% |
| Debt securities over 1 year | 1 | 10 | 374 | 26% | Insurance corporations | 1 | -13 | 529 | 37% | |
| Equity | 1 | -8 | 568 | 39% | Households and NPSH | 1 | 8 | 286 | 20% | |
| Investment fund shares | 1 | 6 | 348 | 24% | Non money market funds | 1 | 5 | 178 | 12% | |
| Real estate assets | 8 | -8 | 96 | 7% | ||||||
| Net deposits and loans and other assets (b) | -14 | -5 | 29 | 2% | General Government | 4 | 6 | 155 | 11% | |
| by geographical area (c) | Resident | 4 | 17 | 685 | 52% | MFIs | -4 | -4 | 50 | 3% |
| Non-Resident euro area | 0 | -2 | 395 | 30% | Non-Financial corporations | -6 | 2 | 65 | 5% | |
| Non-Euro area | -1 | -2 | 234 | 18% | Other financial institutions | 0 | 1 | 16 | 1% | |
| by issuer (c) | Non-Financial corporations and others (d) | 2 | -4 | 616 | 47% | Non-Resident euro area | 1 | -3 | 115 | 8% |
| MFIs | 2 | 20 | 188 | 14% | MFIs | 1 | -2 | 76 | 5% | |
| General Government | -1 | 9 | 113 | 9% | Non MFIs | 0 | -1 | 38 | 3% | |
| Others (e) | 0 | -12 | 396 | 30% | Non-Euro area | 0 | -3 | 44 | 3% | |
| of which non money market funds | 0 | -2 | 277 | 21% |
| Assets | Net flows (a) | Stocks Part (%) | Investors | Net flows (a) | Stocks Part (%) | |||||
| Q4 2022 | 4 moving quarters | Q4 2022 | Q4 2022 | Q4 2022 (g) | 4 moving quarters | Q4 2022 | Q4 2022 | |||
| Money Market Funds (f) | Total | 38 | -19 | 342 | 100% | Total | 38 | -19 | 342 | 100% |
| by type of instrument | Debt securities up to 1 year | 35 | 13 | 246 | 72% | Resident | 18 | -21 | 245 | 72% |
| Debt securities over 1 year | -10 | -25 | 34 | 10% | Insurance corporations | -2 | -21 | 79 | 23% | |
| Investment fund shares | 0 | -1 | 0 | 0% | Non-Financial corporations | 15 | -14 | 59 | 17% | |
| Net deposits and loans and other assets (b) | 13 | -6 | 62 | 18% | Non money market funds | 5 | 11 | 73 | 21% | |
| by geographical area (c) | Resident | 14 | 5 | 131 | 47% | Households and NPSH | 1 | 1 | 4 | 1% |
| Non-Resident euro area | 6 | -3 | 89 | 32% | General Government | 0 | 6 | 17 | 5% | |
| Non-Euro area | 5 | -17 | 60 | 22% | Credit Institutions | -2 | 0 | 5 | 1% | |
| by issuer (c) | MFIs | 28 | -11 | 172 | 61% | Other financial institutions | 1 | -4 | 8 | 2% |
| Non-Financial corporations and others (d) | -4 | -6 | 64 | 23% | Non-Resident euro area | 20 | 5 | 89 | 26% | |
| Others (e) | -1 | 9 | 33 | 12% | MFIs | 16 | 1 | 80 | 23% | |
| General Government | 2 | -5 | 12 | 4% | Non MFIs | 5 | 4 | 9 | 3% | |
| Non-Euro area | -1 | -4 | 8 | 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
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