Financial overview of Investment Funds – France 2023Q3
Published on 22 December 2023
Net inflows in money market funds reach 77 billion over a sliding year
- In Q3 2023:
- Over a sliding year :
Non-monetary funds record -6 billion euros in net subscriptions (see table p.2), after +6 billion in the 2nd quarter. Resident non-monetary funds are the main net sellers (-4 billion), followed by general government and financial corporations (-2 billion each). In terms of investments, non-monetary funds continue to purchase long-term debt securities (+3 billion after +13 billion in the 2nd quarter), to sell equities (-5 billion) and investment fund shares (-3 billion), and to reduce their deposits (-2 billion).
Inflows in money market funds remain high (+10 billion), due to net subscriptions by insurance companies (+5 billion) and general government (+3 billion). On the asset side, investments of money market funds are quite evenly distributed between short-term debt securities (+3 billion), long-term ones (+4 billion) and deposits (+3 billion). These investments benefit primarily to credit institutions (+11 billion) at the expense of non-financial corporations (-4 billion).
Non-monetary funds record net outflows (-13 billion, see table p.2), due to withdrawals from equity and mixed funds (-21 and -12 billion, see graphs p.1), partially offset by positive flows in employee saving funds, real estate and bond funds (respectively +7, +6 and +5 billion). Asset managers favor investments in long-term debt securities (+ 22 billion) to net deposits and other assets (-25 billion) and equities (-16 billion), and limit their exposure to non-financial corporations and others (-10 billion).
Net subscriptions of money market funds are significantly positive (+77 billion in inflow, see graph F, and +80 billion in consolidated stocks variation, see table p.2). Resident insurance companies are the main buyers (+27 billion), followed by non-resident MFIs of the euro zone, and resident non-financial corporations and non-monetary funds (respectively +18, +14 and +11 billion). Money market funds mainly acquire short-term debt securities (+62 billion), mostly issued by resident MFIs, and increase their net deposits and other assets (+21 billion).
Methodological change: The Banque de France has improved the compilation of holdings in non-money-market fund shares broken down by investor category. This change has been retropolated to the beginning of 2023, thus generating a break in the series. This amounts to around +30 billion euros in 2023-Q1 in non-money-market fund holdings by insurance companies and pension funds.
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 (%) | |||||
| Q3 2023 | 4 moving quarters | Q3 2023 | Q3 2023 | Q3 2023 (g) | 4 moving quarters | Q3 2023 | Q3 2023 | |||
| Non money market funds | Total | -6 | -13 | 1,455 | 100% | Total | -6 | -13 | 1,455 | 100% |
| by type of instrument | Debt securities up to 1 year | 0 | 0 | 24 | 2% | Resident | -6 | -13 | 1,311 | 90% |
| Debt securities over 1 year | 3 | 22 | 394 | 27% | Insurance corporations | 1 | -4 | 577 | 40% | |
| Equity | -5 | -16 | 575 | 40% | Households and NPSH | -1 | 5 | 287 | 20% | |
| Investment fund shares | -3 | 3 | 354 | 24% | Non money market funds | -4 | -4 | 173 | 12% | |
| Real estate assets | 0 | 4 | 89 | 6% | ||||||
| Net deposits and loans and other assets (b) | -2 | -25 | 19 | 1% | General Government | -2 | 0 | 145 | 10% | |
| by geographical area (c) | Resident | -4 | -3 | 695 | 52% | MFIs | 0 | -4 | 44 | 3% |
| Non-Resident euro area | 2 | 9 | 411 | 30% | Non-Financial corporations | -2 | -8 | 66 | 5% | |
| Non-Euro area | -3 | 2 | 241 | 18% | Other financial institutions | 2 | 2 | 19 | 1% | |
| by issuer (c) | Non-Financial corporations and others (d) | -4 | -10 | 626 | 46% | Non-Resident euro area | -1 | 0 | 102 | 7% |
| MFIs | 0 | 10 | 198 | 15% | MFIs | -2 | -2 | 63 | 4% | |
| General Government | 1 | 3 | 116 | 9% | Non MFIs | 1 | 1 | 39 | 3% | |
| Others (e) | -2 | 6 | 408 | 30% | Non-Euro area | 1 | 1 | 42 | 3% | |
| of which non money market funds | -1 | 3 | 286 | 21% |
| Assets | Net flows (a) | Stocks Part (%) | Investors | Net flows (a) | Stocks Part (%) | |||||
| Q3 2023 | 4 moving quarter | Q3 2023 | Q3 2023 | Q3 2023 (g) | 4 moving quarters | Q3 2023 | Q3 2023 | |||
| Money Market Funds (f) | Total | 10 | 80 | 385 | 100% | Total | 10 | 80 | 385 | 100% |
| by type of instrument | Debt securities up to 1 year | 3 | 62 | 273 | 71% | Resident | 11 | 61 | 288 | 75% |
| Debt securities over 1 year | 4 | -2 | 42 | 11% | Insurance corporations | 5 | 27 | 108 | 28% | |
| Investment fund shares | 0 | 0 | 1 | 0% | Non-Financial corporations | 1 | 14 | 58 | 15% | |
| Net deposits and loans and other assets (b) | 3 | 21 | 69 | 18% | Non money market funds | 2 | 11 | 78 | 20% | |
| by geographical area (c) | Resident | -1 | 33 | 150 | 48% | Households and NPSH | 0 | 5 | 8 | 2% |
| Non-Resident euro area | 7 | 19 | 102 | 32% | General Government | 3 | 5 | 22 | 6% | |
| Non-Euro area | 1 | 7 | 63 | 20% | Credit Institutions | 0 | -3 | 3 | 1% | |
| by issuer (c) | MFIs | 11 | 81 | 226 | 72% | Other financial institutions | 0 | 3 | 10 | 3% |
| Non-Financial corporations and others (d) | -4 | -13 | 55 | 17% | Non-Resident euro area | 0 | 21 | 90 | 24% | |
| Others (e) | 1 | -7 | 27 | 9% | MFIs | 0 | 18 | 83 | 21% | |
| General Government | 0 | -2 | 7 | 2% | Non MFIs | 0 | 3 | 7 | 2% | |
| Non-Euro area | -1 | -3 | 6 | 2% |
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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