Statistical News Release: Dutch equity investment funds suffer largest loss ever
The stock shock at the end of 2018 marked the largest loss ever for Dutch investment funds. Equity investment funds saw their equity holdings go down by EUR 44 billion in the fourth quarter of 2018. This and a number of other minor developments resulted in a decline of the assets under management of Dutch investment funds of EUR 56 billion, which means the assets were almost back at the level of early 2017 at the end of 2018.
Assets managed by Dutch investment funds back at the early 2017 level
The assets managed by Dutch investment funds fell to EUR 850 billion from EUR 906 billion in the fourth quarter of 2018, bringing it almost back at the level of early 2017, when they stood at EUR 857 billion (see Figure 1). The decline was mainly driven by a EUR 44 billion drop in the equity and investment fund units in equity investment funds’ portfolios. This group of funds saw its assets under management go down to EUR 314 billion from EUR 358, a staggering 12% compared to the previous quarter. Because pension funds are the biggest investors in investment funds, they are the most affected by the losses in the equity funds. Mixed funds also contracted, from EUR 18 billion to EUR 16.5 billion, mainly as a result of the downward trend in the stock markets. The decline was in line with the overall losses in the international equity markets in this period: the Dutch AEX went down 12.2%, the US S&P index lost 12.6% and the MSCI World index plummeted 12.4%. These indices showed tentative signs of recovery in the first month of 2019, however.
Moderate movements in other types of investment funds
The impact of equity market fluctuations on other types of investment funds was limited. The asset volumes of bond funds and real estate funds remained stable at EUR 230 billion and EUR 124 billion, respectively. Investors withdrew a total of EUR 2.3 billion from hedge funds. Partly due to loan redemptions, the asset volume of “other funds”, which include private equity and mortgage funds, went down from EUR 150 billion to EUR 143 billion.
Withdrawals from investment funds totalled almost EUR 6 billion
Investors withdrew a net amount of EUR 5.8 billion from Dutch investment funds. EUR 4.7 billion was accounted for by pension funds and EUR 1.1 billion by other investment funds. This was an opposite trend compared to the third quarter, when a total of EUR 6.0 billion was invested in Dutch investment funds on balance.
Please refer to our statistics website for more information about Dutch investment funds