Financial overview of Investment Funds – France 2020Q1
Published on the 2nd of June 2020
The effects of the health crisis in March: strong outflows from money market funds and decline in the value of non-money market funds
- First quarter of 2020: non-monetary funds record a net outflow of -3 billion (see table p.2). Over one year, withdrawals amount to 21 billion, mainly from equity (-14 billion) and mixed funds (-11 billion), while real estate funds and employee savings funds record positive inflows (see G1). In terms of investments, non-monetary funds sell debt securities (-5 billion) and mutual fund shares/units (-8 billion) in Q1 2020, whereas they increase their deposits and other net investments (+10 billion).
- Money market funds also record an outflow of 9 billion in the first quarter, reaching 32 billion over one year, originating for more than half of the resident non-financial corporations. MMFs favour deposits and other net investments (+13 billion) at the expense of resident debt securities (-18 billion) and in particular those issued by credit institutions (-19 billion). - Focus on March 2020 - Euro area non-market funds: at end-March 2020, the outstanding amount of non-monetary funds in the euro area falls by 10.3% compared with February 2020 (- 1,322 billion, see Focus A) to stand at 11,463 billion. This sharp decline can be broken down into an 8.3% valuation loss and a 2% outflow. Equity funds are the most impacted by the decline in valuation (-452 billion, a decrease in outstanding amounts of -12.7%) while bond funds record the largest outflows (-139 billion, a decrease in outstanding amounts of -3.8%, cf. Focus B). Luxembourg and Ireland experience the largest withdrawals (78% of total outflows and -3.1% and -2.5% of net assets respectively) (see Focus C).
- By comparison, France record a small outflow from its non-money market funds in March (-3 bn or 0.5% of net assets) despite the decline in valuation (-103 billion or -8%). By contrast, French MMFs had to cope with large net redemptions in March (53 billion, or -15% over one month, see Focus D) owing to withdrawals mainly by insurance companies (-17 billion), non-financial companies (-13.5 billion) and foreign investors (-10 billion).
- By contrast, French MMFs had to cope with large net redemptions in March (53 billion, i.e. -15% over one month, see Focus D) owing to withdrawals mainly by insurance companies (-17 billion), non-financial corporations (-13.5 billion) and foreign investors (-10 billion). These net outflows, which are very concentrated in the second half of March, then come to a halt.
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 (%) | |||||
| Q1 2020 | 4 moving quarters | Q1 2020 | Q1 2020 | Q1 2020 | 4 moving quarters | Q1 2020 | Q1 2020 | |||
| Non money market funds | Total | -6 | -21 | 1,170 | 100% | Total | -3 | -21 | 1,170 | 100 |
| by type of instrument | Debt securities up to 1 year | -1 | -7 | 26 | 2% | Resident | -4 | -14 | 1,049 | 90% |
| Debt securities over 1 year | -4 | -2 | 350 | 30% | Insurance corporations | -5 | -5 | 449 | 38% | |
| Equity | -2 | -1 | 392 | 34% | Households and NPSH | -1 | -5 | 237 | 20% | |
| Investment fund shares | -8 | -17 | 281 | 24% | Non money market funds | -2 | -8 | 127 | 11% | |
| Real estate assets | 2 | 3 | 85 | 7% | ||||||
| Net deposits and loans and other assets (b) | 10 | 4 | 36 | 3% | General Government | 0 | 1 | 132 | 11% | |
| by geographical area (c) | Resident | -4 | -8 | 522 | 50% | MFIs | 4 | 3 | 51 | 4% |
| Non-Resident euro area | -8 | -16 | 344 | 33% | Non-Financial corporations | 0 | -2 | 47 | 4% | |
| Non-Euro area | -3 | -4 | 183 | 17% | Other financial institutions | 0 | 0 | 6 | 1% | |
| by issuer (c) | Non-Financial corporations and others (d) | -4 | -8 | 499 | 48% | Non-Resident euro area | 1 | -5 | 103 | 9% |
| MFIs | 2 | -3 | 153 | 15% | MFIs | 0 | -6 | 91 | 8% | |
| General Government | -2 | -7 | 104 | 10% | Non MFIs | 0 | 1 | 12 | 1% | |
| Others (e) | -11 | -10 | 293 | 28% | Non-Euro area | 0 | -2 | 18 | 2% | |
| of which non money market funds | -10 | -17 | 213 | 20% |
| Assets | Net flows (a) | Stocks Part (%) | Investors | Net flows (a) | Stocks Part (%) | |||||
| Q1 2020 | 4 moving quarters | Q1 2020 | Q1 2020 (g) | 4 moving quarters | Q1 2020 | |||||
| Money Market Funds (f) | Total | -8 | -32 | 288 | 100% | Total | -8 | -32 | 288 | 100% |
| by type of instrument | Debt securities up to 1 year | -15 | -41 | 161 | 56% | Resident | 1 | -31 | 236 | 82% |
| Debt securities over 1 year | -6 | -3 | 76 | 26% | Insurance corporations | 7 | -6 | 98 | 34% | |
| Investment fund shares | -1 | -3 | 0 | 0% | Non-Financial corporations | -5 | -18 | 50 | 17% | |
| Net deposits and loans and other assets (b) | 13 | 14 | 51 | 18% | Non money market funds | 2 | 0 | 66 | 23% | |
| by geographical area (c) | Resident | -18 | -33 | 97 | 41% | Households and NPSH | 0 | 0 | 4 | 1% |
| Non-Resident euro area | -7 | -4 | 83 | 35% | General Government | -2 | -3 | 9 | 3% | |
| Non-Euro area | 3 | -10 | 57 | 24% | Credit Institutions | 0 | -3 | 4 | 1% | |
| by issuer (c) | MFIs | -19 | -35 | 150 | 63% | Other financial institutions | -1 | 0 | 5 | 2% |
| Non-Financial corporations and others (d) | -1 | -11 | 60 | 25% | Non-Resident euro area | -5 | 0 | 49 | 17% | |
| Others (e) | -1 | -1 | 22 | 9% | MFIs | -4 | 1 | 46 | 16% | |
| General Government | -1 | 1 | 5 | 2% | Non MFIs | -2 | -1 | 4 | 1% | |
| Non-Euro area | -4 | -1 | 3 | 1% |
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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Updated on the 21st of August 2020