Financial overview of Investment Funds – France 2020Q2
Published on the 7th of September 2020
Investment funds record again a positive fundraising in the 2nd quarter
- Second quarter of 2020: non-monetary mutual funds record inflows of 4 billion (see table p.2) after 3 consecutive quarters of outflows. Households are the main investors (+10 bn) while MFIs record net withdrawals (-13 bn). Funds invest primarily in securities issued by non-financial corporations (+5 billion) at the expense of those issued by MFIs (-5 billion).
MMFs also record a positive inflow of 18 billion following the first quarter outflow of -9 billion, partly due to the effects of the health crisis. These net subscriptions are mainly attributable to resident non-financial corporations and non-resident investors (+19 and +7 billion respectively, see table 2). - Over one year Non-monetary mutual funds experience a net outflow of -25 billion. Net withdrawals impact bond (-13 billion), equity (-9 billion) and mixed funds (-9 billion), while real estate and employee savings funds record positive inflows (+7 and +2 billion respectively) (see graph G1). In terms of investments, net sales mainly concern mutual fund shares/units (-17 billion). On the investors' side, resident MFIs (-14 billion) and non-euro area residents (-15 billion) account for these net withdrawals.
MMFs record an outflow of -2 billion. On the asset side, short-term and long-term debt securities (respectively -24 billion and -15 billion, see Table 2) are largely sold in favor of deposits and other net investments (+38 billion). At the investor level, withdrawals mainly come from insurance companies (-18 billion), offset by net subscriptions from resident non-financial corporations (+18 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 (%) | |||||
| Q2 2020 | 4 moving quarters | Q2 2020 | Q2 2020 | Q2 2020 (g) | 4 moving quarters | Q2 2020 | Q2 2020 | |||
| Non money market funds | Total | 4 | -25 | 1,249 | 100% | Total | 4 | -25 | 1,249 | 100 |
| by type of instrument | Debt securities up to 1 year | -1 | -2 | 25 | 2% | Resident | 4 | -14 | 1,129 | 90% |
| Debt securities over 1 year | 1 | -5 | 364 | 29% | Insurance corporations | 4 | -2 | 484 | 39% | |
| Equity | 3 | 1 | 443 | 35% | Households and NPSH | 10 | 3 | 261 | 21% | |
| Investment fund shares | 3 | -17 | 301 | 24% | Non money market funds | 3 | -5 | 140 | 11% | |
| Real estate assets | 1 | 6 | 86 | 7% | ||||||
| Net deposits and loans and other assets (b) | -2 | -9 | 30 | 2% | General Government | -1 | 6 | 148 | 12% | |
| by geographical area (c) | Resident | 4 | -9 | 557 | 49% | MFIs | -13 | -14 | 38 | 3% |
| Non-Resident euro area | -2 | -16 | 372 | 33% | Non-Financial corporations | 2 | -1 | 51 | 4% | |
| Non-Euro area | 4 | 2 | 203 | 18% | Other financial institutions | 0 | 0 | 7 | 1% | |
| by issuer (c) | Non-Financial corporations and others (d) | 5 | 1 | 553 | 49% | Non-Resident euro area | -3 | -15 | 97 | 8% |
| MFIs | -5 | -13 | 152 | 13% | MFIs | -4 | -16 | 84 | 7% | |
| General Government | -1 | -5 | 106 | 9% | Non MFIs | 0 | 1 | 13 | 1% | |
| Others (e) | 6 | -6 | 322 | 28% | Non-Euro area | 3 | 3 | 23 | 2% | |
| of which non money market funds | 5 | -10 | 236 | 21% |
| Assets | Net flows (a) | Stocks Part (%) | Investors | Net flows (a) | Stocks Part (%) | |||||
| Q2 2020 | 4 moving quarters | Q2 2020 | Q2 2020 | Q2 2020 (g) | 4 moving quarters | Q2 2020 | Q2 2020 | |||
| Money Market Funds (f) | Total | 18 | -1 | 306 | 100% | Total | 18 | -1 | 306 | 100% |
| by type of instrument | Debt securities up to 1 year | 10 | -24 | 171 | 56% | Resident | 11 | -7 | 247 | 81% |
| Debt securities over 1 year | -12 | -15 | 64 | 21% | Insurance corporations | -10 | -18 | 89 | 29% | |
| Investment fund shares | 1 | -1 | 2 | 1% | Non-Financial corporations | 19 | 18 | 69 | 22% | |
| Net deposits and loans and other assets (b) | 18 | 38 | 70 | 23% | Non money market funds | -3 | -7 | 63 | 21% | |
| by geographical area (c) | Resident | 8 | -18 | 104 | 44% | Households and NPSH | 1 | 0 | 5 | 2% |
| Non-Resident euro area | -6 | -16 | 77 | 33% | General Government | 2 | 3 | 11 | 4% | |
| Non-Euro area | -2 | -6 | 55 | 23% | Credit Institutions | 1 | -2 | 4 | 1% | |
| by issuer (c) | MFIs | 3 | -22 | 152 | 64% | Other financial institutions | 1 | -1 | 6 | 2% |
| Non-Financial corporations and others (d) | -9 | -20 | 51 | 21% | Non-Resident euro area | 3 | 5 | 52 | 17% | |
| Others (e) | -1 | -5 | 21 | 9% | MFIs | 1 | 4 | 46 | 15% | |
| General Government | 7 | 7 | 12 | 5% | Non MFIs | 2 | 1 | 6 | 2% | |
| Non-Euro area | 4 | 1 | 7 | 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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Updated on the 7th of September 2020