Financial overview of Investment Funds – France 2024Q1
Published on 28 June 2024
Outstanding amount in money market fund shares increases in Q1 2024
- The level of interest rates continues to encourage investment in money market funds shares, with net subscriptions of €48 bn over the year (cf. G1, for a €58 bn change in assets under management, cf. table p.2). Consolidated outstanding amounts of French MMF shares total €421 bn, versus €363 bn one year ago.
- By contrast, non-money market funds record net outflows of €12 bn over the year (see table p.2). Investors withdraw from equity and mixed funds (-€17 bn and -€20 bn, cf. G1), investing in bond and employee savings funds (+€15 bn and +€6 bn respectively).
Holdings of MMF shares over a sliding year: insurance companies and other financial institutions remain the main buyers (+€16 bn and +€14 bn respectively), followed by households and NFCs (for €12 bn and €11 bn respectively).
Changes in portfolio assets: over one year, French money market funds acquired €30 bn in short-term debt securities, €20 bn in long-term debt securities, from resident issuers for €26 bn and non-resident issuers for €22 bn. They also increased their deposits and other net investments by €9 bn.
Holdings of non-MMF shares: The decline in holdings of non-money market funds shares by non-money market funds, with a net outflow of -€13 billion over the year, is behind the overall net outflow. The other developments offset each other: insurance companies and households are net sellers of non-money market funds (-€7 bn and -€3 bn respectively), while general government, NFCs and MFIs are net buyers (+€5 bn, +€5 bn and +€3 bn). Non-residents are net sellers for €3 bn.
Changes in portfolio assets: Over the year, French non-money market funds invested mainly in long-term debt securities (+€21 bn), selling equities (-€15 bn) and reducing their deposits and other net investments (-€11 bn). They favored non-resident issuers (+€20 bn) to the detriment of residents (-€24 bn).
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 2024 | 4 moving quarters | Q1 2024 | Q1 2024 | Q1 2024 (g) | 4 moving quarters | Q1 2024 | Q1 2024 | |||
| Non money market funds | Total | -1 | -12 | 1,574 | 100% | Total | -1 | -12 | 1,574 | 100% |
| by type of instrument | Debt securities up to 1 year | -1 | -2 | 22 | 1% | Resident | -8 | -9 | 1,411 | 90% |
| Debt securities over 1 year | 7 | 21 | 423 | 27% | Insurance corporations | -5 | -7 | 610 | 39% | |
| Equity | -4 | -15 | 644 | 41% | Households and NPSH | -5 | -3 | 305 | 19% | |
| Investment fund shares | -5 | -8 | 372 | 24% | Non money market funds | -5 | -13 | 181 | 12% | |
| Real estate assets | 1 | 3 | 90 | 6% | ||||||
| Net deposits and loans and other assets (b) | 3 | -11 | 23 | 1% | General Government | 2 | 5 | 168 | 11% | |
| by geographical area (c) | Resident | -9 | -24 | 735 | 50% | MFIs | 2 | 3 | 51 | 3% |
| Non-Resident euro area | 4 | 20 | 457 | 31% | Non-Financial corporations | 4 | 5 | 76 | 5% | |
| Non-Euro area | 1 | 0 | 268 | 18% | Other financial institutions | 0 | 1 | 21 | 1% | |
| by issuer (c) | Non-Financial corporations and others (d) | -2 | -4 | 697 | 48% | Non-Resident euro area | 5 | -3 | 116 | 7% |
| MFIs | -1 | -3 | 200 | 14% | MFIs | 1 | -7 | 68 | 4% | |
| General Government | -1 | -2 | 114 | 8% | Non MFIs | 4 | 4 | 47 | 3% | |
| Others (e) | 0 | 5 | 450 | 31% | Non-Euro area | 3 | 0 | 47 | 3% | |
| of which non money market funds | -1 | -1 | 306 | 21% |
| Assets | Net flows (a) | Stocks Part (%) | Investors | Net flows (a) | Stocks Part (%) | |||||
| Q1 2024 | 4 moving quarter | Q1 2024 | Q1 2024 | Q1 2024 (g) | 4 moving quarters | Q1 2024 | Q1 2024 | |||
| Money Market Funds (f) | Total | 24 | 58 | 421 | 100% | Total | 24 | 58 | 421 | 100% |
| by type of instrument | Debt securities up to 1 year | 20 | 30 | 288 | 68% | Resident | 23 | 50 | 321 | 76% |
| Debt securities over 1 year | 5 | 20 | 57 | 13% | Insurance corporations | 3 | 16 | 117 | 28% | |
| Investment fund shares | 0 | -1 | 1 | 0% | Non-Financial corporations | 6 | 11 | 72 | 17% | |
| Net deposits and loans and other assets (b) | -2 | 9 | 76 | 18% | Non money market funds | -5 | 0 | 75 | 18% | |
| by geographical area (c) | Resident | 16 | 26 | 168 | 49% | Households and NPSH | 8 | 12 | 15 | 4% |
| Non-Resident euro area | 3 | 14 | 108 | 31% | General Government | -1 | -2 | 21 | 5% | |
| Non-Euro area | 7 | 8 | 70 | 20% | Credit Institutions | 0 | 0 | 4 | 1% | |
| by issuer (c) | MFIs | 25 | 57 | 252 | 73% | Other financial institutions | 12 | 14 | 16 | 4% |
| Non-Financial corporations and others (d) | 2 | -9 | 55 | 16% | Non-Resident euro area | 0 | 8 | 95 | 22% | |
| Others (e) | 0 | 0 | 31 | 9% | MFIs | 1 | 8 | 89 | 21% | |
| General Government | 0 | 0 | 8 | 2% | Non MFIs | -1 | 0 | 6 | 1% | |
| Non-Euro area | 1 | 0 | 6 | 1% |
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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Updated on 28 June 2024