Financial overview of Investment Funds – France 2021Q4
Published on 11 March 2022
In 2021, subscriptions benefit non-monetary funds but flows remain modest
- After an exceptional inflow of 80 billion in 2020, money market funds show an outflow of 12 billion in 2021 (see table p.2, and -13 billion in non-consolidated flows, see G1), thus returning to the trends recorded in previous years (see focus B). This development is related to the negative annual net performance of money market funds of -0.48% in 2021. For the eurozone, money market funds outstanding (focus D) changes little over the year, standing at 1,452 billion (+2%). The market share of French money market funds is 26%, with outstanding of 379 billion (non-consolidated data).
Residents are net sellers of French money market funds for 31 billion, notably NFCs for 14 billion, partly offset by net subscriptions by non-resident eurozone MFIs for 22 billion. In terms of investment structure, deposits and other net investments, which had risen sharply in 2020 (+52 billion), contract by 23 billion in 2021. Within the portfolio, funds give preference to short-term debt securities for 16 billion. In addition, funds increase their holdings of securities issued by credit institutions (+12 billion) at the expense of those issued by general government (-13 billion).
- Non-money market funds record net subscriptions of 10 billion in 2021 (see table p.2). These subscriptions are for all funds (especially bond funds for +9 billion and mixed funds for + 6 billion) but with the exception of equity funds, which record a net outflow of -9 billion (see G1). The increase in the value of non-money market funds led to a significant rise of 134 billion in assets under management, a large part of which come from equity funds and other funds (+73 billion and +31 billion respectively; see Focus A). With a 10% increase in assets under management, French non-money market funds grow less than those of the euro zone, which, with assets under management of 16,258 billion at the end of 2021 (Focus D), record an increase of 17%.
Resident insurance companies and public administrations are the main subscribers (+8 billion and +6 billion). In contrast, resident and eurozone MFIs are withdrawing (-11 billion and -6 billion respectively). On the asset side, investments in long-term debt securities are favored (+10 billion) at the expense of deposits and other net investments (-5 billion).
Residents are net sellers of French money market funds for 31 billion, notably NFCs for 14 billion, partly offset by net subscriptions by non-resident eurozone MFIs for 22 billion. In terms of investment structure, deposits and other net investments, which had risen sharply in 2020 (+52 billion), contract by 23 billion in 2021. Within the portfolio, funds give preference to short-term debt securities for 16 billion. In addition, funds increase their holdings of securities issued by credit institutions (+12 billion) at the expense of those issued by general government (-13 billion).
- Non-money market funds record net subscriptions of 10 billion in 2021 (see table p.2). These subscriptions are for all funds (especially bond funds for +9 billion and mixed funds for + 6 billion) but with the exception of equity funds, which record a net outflow of -9 billion (see G1). The increase in the value of non-money market funds led to a significant rise of 134 billion in assets under management, a large part of which come from equity funds and other funds (+73 billion and +31 billion respectively; see Focus A). With a 10% increase in assets under management, French non-money market funds grow less than those of the euro zone, which, with assets under management of 16,258 billion at the end of 2021 (Focus D), record an increase of 17%.
Resident insurance companies and public administrations are the main subscribers (+8 billion and +6 billion). In contrast, resident and eurozone MFIs are withdrawing (-11 billion and -6 billion respectively). On the asset side, investments in long-term debt securities are favored (+10 billion) at the expense of deposits and other net investments (-5 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 2021 | 4 moving quarters | Q4 2021 | Q4 2021 | Q4 2021 | 4 moving quarters | Q4 2021 | Q4 2021 | |||
| Non money market funds | Total | 6 | 10 | 1,481 | 100% | Total | 6 | 10 | 1,481 | 100 |
| by type of instrument | Debt securities up to 1 year | 0 | 1 | 23 | 2% | Resident | 6 | 13 | 1,347 | 91% |
| Debt securities over 1 year | -1 | 10 | 384 | 26% | Insurance corporations | 4 | 8 | 575 | 39% | |
| Equity | 3 | -1 | 593 | 40% | Households and NPSH | 2 | 0 | 305 | 21% | |
| Investment fund shares | 4 | 4 | 362 | 24% | Non money market funds | 1 | 5 | 174 | 12% | |
| Real estate assets | 3 | 2 | 96 | 6% | ||||||
| Net deposits and loans and other assets (b) | -3 | -5 | 24 | 2% | General Government | 6 | 6 | 170 | 11% | |
| by geographical area (c) | Resident | 2 | -6 | 654 | 48% | MFIs | -6 | -11 | 51 | 3% |
| Non-Resident euro area | 0 | 9 | 449 | 33% | Non-Financial corporations | 2 | 6 | 62 | 4% | |
| Non-Euro area | 4 | 10 | 259 | 19% | Other financial institutions | -2 | 0 | 10 | 1% | |
| by issuer (c) | Non-Financial corporations and others (d) | 0 | 2 | 688 | 51% | Non-Resident euro area | 1 | -5 | 108 | 7% |
| MFIs | 1 | -4 | 165 | 12% | MFIs | 1 | -6 | 91 | 6% | |
| General Government | -1 | 0 | 105 | 8% | Non MFIs | 0 | 1 | 17 | 1% | |
| Others (e) | 6 | 15 | 404 | 30% | Non-Euro area | -1 | 2 | 26 | 2% | |
| of which non money market funds | 3 | 9 | 298 | 22% |
| Assets | Net flows (a) | Stocks Part (%) | Investors | Net flows (a) | Stocks Part (%) | |||||
| Q4 2021 | 4 moving quarters | Q4 2021 | Q4 2021 | Q4 2021 | 4 moving quarters | Q4 2021 | Q4 2021 | |||
| Money Market Funds (f) | Total | 22 | -12 | 361 | 100% | Total | 22 | -12 | 361 | 100% |
| by type of instrument | Debt securities up to 1 year | 22 | 16 | 233 | 64% | Resident | 1 | -31 | 266 | 74% |
| Debt securities over 1 year | -5 | -5 | 60 | 16% | Insurance corporations | -2 | 1 | 100 | 28% | |
| Investment fund shares | 1 | 0 | 1 | 0% | Non-Financial corporations | 6 | -14 | 74 | 20% | |
| Net deposits and loans and other assets (b) | 4 | -23 | 67 | 19% | Non money market funds | 1 | -6 | 62 | 17% | |
| by geographical area (c) | Resident | -1 | -3 | 126 | 43% | Households and NPSH | -1 | -1 | 4 | 1% |
| Non-Resident euro area | 10 | 4 | 92 | 31% | General Government | -2 | -5 | 11 | 3% | |
| Non-Euro area | 11 | 12 | 78 | 26% | Credit Institutions | -1 | -1 | 4 | 1% | |
| by issuer (c) | MFIs | 12 | 12 | 183 | 62% | Other financial institutions | -1 | -6 | 12 | 3% |
| Non-Financial corporations and others (d) | 4 | 8 | 69 | 24% | Non-Resident euro area | 20 | 22 | 84 | 23% | |
| Others (e) | 3 | 3 | 24 | 8% | MFIs | 20 | 25 | 80 | 22% | |
| General Government | -2 | -13 | 17 | 6% | Non MFIs | 0 | -3 | 5 | 1% | |
| Non-Euro area | 1 | -3 | 11 | 3% |
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 11 March 2022