Financial overview of Investment Funds – France 2021Q2
Published on the 9th of September 2021
Further outflows from money market funds in Q2
- In Q2 2021: After record inflows in 2020, money market funds again record net outflows (-18 billion after -13 billion in the first quarter, see table on page 2) and outstandings at the end of June are almost at the same level as in February 2020 just before the crisis. Residents are net sellers (-19 billion), and more particularly non-financial companies (-15 billion) and credit institutions (-6 billion). On the investment side, deposits and other net investments as well as short-term debt securities, which had largely benefited from favorable arbitrage in 2020, suffer withdrawals of 10 billion and 6 billion respectively (see table p2).
Non-money market funds see a moderate net inflow of 5 billion, with strong withdrawals by financial and monetary institutions (9 billion) more than offset by purchases by the non-financial sector. - Over a sliding year: Money market fund inflows remain largely positive (+ 36 billion in consolidated data). Residents are the largest investors (+21 billion, see table p2), particularly insurance companies (+13 billion). The sums collected are invested in short-term securities (+ 31 billion, see table 2), confirming the reallocation of investments towards quasi-liquid securities.
Non-money market funds record net subscriptions of 8 billion (see table p.2), including 11 billion from resident investors. These subscriptions mainly concern bond funds (+9 bn) and employee savings funds (+7 billion) (see G1), to the detriment in particular of equity funds (-4 billion). Investments are mainly directed towards mutual funds (+8 billion, see table 2) at the expense of deposits and other net investments (-8 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 2021 | 4 moving quarters | Q2 2021 | Q2 2021 | Q2 2021 (g) | 4 moving quarters | Q2 2021 | Q2 2021 | |||
| Non money market funds | Total | 5 | 8 | 1,419 | 100% | Total | 5 | 8 | 1,419 | 100 |
| by type of instrument | Debt securities up to 1 year | 1 | -3 | 23 | 2% | Resident | 6 | 11 | 1,288 | 91% |
| Debt securities over 1 year | 3 | 2 | 377 | 27% | Insurance corporations | 2 | 1 | 545 | 38% | |
| Equity | -1 | 3 | 555 | 39% | Households and NPSH | 7 | 6 | 296 | 21% | |
| Investment fund shares | 3 | 8 | 347 | 24% | Non money market funds | 2 | 4 | 165 | 12% | |
| Real estate assets | 1 | 3 | 93 | 7% | ||||||
| Net deposits and loans and other assets (b) | -2 | -7 | 24 | 2% | General Government | 5 | 2 | 164 | 12% | |
| by geographical area (c) | Resident | 1 | -3 | 626 | 48% | MFIs | -9 | -7 | 50 | 4% |
| Non-Resident euro area | 1 | 5 | 434 | 33% | Non-Financial corporations | 2 | 3 | 58 | 4% | |
| Non-Euro area | 4 | 10 | 242 | 19% | Other financial institutions | -2 | 1 | 10 | 1% | |
| by issuer (c) | Non-Financial corporations and others (d) | 1 | 4 | 654 | 50% | Non-Resident euro area | -2 | -3 | 105 | 7% |
| MFIs | -1 | -1 | 160 | 12% | MFIs | -3 | -4 | 89 | 6% | |
| General Government | 1 | -2 | 105 | 8% | Non MFIs | 0 | 1 | 16 | 1% | |
| Others (e) | 5 | 10 | 383 | 29% | Non-Euro area | 1 | 0 | 26 | 2% | |
| of which non money market funds | 2 | 9 | 282 | 22% |
| Assets | Net flows (a) | Stocks Part (%) | Investors | Net flows (a) | Stocks Part (%) | |||||
| Q2 2021 | 4 moving quarters | Q2 2021 | Q2 2021 | Q2 2021 (g) | 4 moving quarters | Q2 2021 | Q2 2021 | |||
| Money Market Funds (f) | Total | -18 | 36 | 342 | 100% | Total | -18 | 36 | 342 | 100% |
| by type of instrument | Debt securities up to 1 year | -6 | 31 | 202 | 59% | Resident | -19 | 21 | 268 | 78% |
| Debt securities over 1 year | -1 | 5 | 69 | 20% | Insurance corporations | 1 | 13 | 102 | 30% | |
| Investment fund shares | -1 | -1 | 1 | 0% | Non-Financial corporations | -15 | -2 | 67 | 19% | |
| Net deposits and loans and other assets (b) | -10 | 0 | 70 | 20% | Non money market funds | 1 | 0 | 62 | 18% | |
| by geographical area (c) | Resident | -5 | 24 | 128 | 47% | Households and NPSH | 0 | -1 | 4 | 1% |
| Non-Resident euro area | -3 | 1 | 79 | 29% | General Government | 1 | 3 | 14 | 4% | |
| Non-Euro area | 1 | 12 | 66 | 24% | Credit Institutions | -6 | -2 | 2 | 1% | |
| by issuer (c) | MFIs | -4 | 17 | 169 | 62% | Other financial institutions | -2 | 10 | 16 | 5% |
| Non-Financial corporations and others (d) | -2 | 10 | 61 | 22% | Non-Resident euro area | 0 | 9 | 61 | 18% | |
| Others (e) | 2 | 1 | 22 | 8% | MFIs | 2 | 11 | 57 | 17% | |
| General Government | -4 | 8 | 21 | 8% | Non MFIs | -2 | -2 | 4 | 1% | |
| Non-Euro area | 1 | 6 | 13 | 4% |
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 9th of September 2021