In the third quarter of 2011 Dutch investment funds’ net assets declined by 0.3% Q-o-Q (EUR 1.3 billion) to EUR 466.8 billion. This is the first decrease in net assets since the second quarter of 2010. The number of investment funds in the third quarter of 2011 fell by three to 1440.
Investment funds reported a negative total return of 4.9% Q-o-Q in the third quarter of 2011. This is the largest loss on the investment portfolio since statistics on investment funds began in the fourth quarter of 2008. Equity markets came under downward pressure in the third quarter of 2011 on the back of weak global economic growth and the European debt crisis. A capital loss of 13.6% Q-o-Q was suffered on equities in the third quarter of 2011. In the same period, the MSCI World index (measured in euro) fell by 10.4% Q-o-Q and the AEX by 17.5% Q-o-Q. Investments in bonds returned a capital gain of 1.0% Q-o-Q, while the capital gain realised on government bonds amounted to 2.3% Q-o-Q. The underlying cause was the fall in capital market rates in the US, Germany and France owing to the deterioration in economic sentiment. Investment funds reported a moderate capital loss of 0.3% Q-o-Q on their investments in corporate bonds.
Hedge funds showed a positive total return of 5.8% Q-o-Q in the third quarter of 2011, despite the decline of the benchmark (Dow Jones Credit Suisse Hedge Fund Index) by 4.8%. The appreciation of the US dollar against the euro by 6.6% played a significant role, as a large share of the investments of Dutch hedge funds is located outside of the euro area.
Net inflow into investment funds amounted to EUR 23.1 billion. This amount is distorted upwards by transfers, through which institutional investors transferred directly held investments to investment funds. On adjusting for these transfers, a net inflow of EUR 7.7 billion remained, originating mainly from institutional investors. Equity funds (after adjusting for transfers) reported a net inflow of EUR 7.2 billion. Real estate funds (EUR +1.1 billion), other funds (EUR +1.3 billion) and hedge funds (EUR +0.4 billion) took in smaller net inflows. Investors withdrew EUR 2.5 billion from bond funds.
For further information please contact Herman Lutke Schipholt (tel. +31 20 524 2712, + 31 6524 96 900) or Kees Verhagen (tel. 020-524 2272, 06-211 23 922).