Slight increase in total net assets of Dutch investment funds

Statistical News Release
Date 15 August 2012

Total net assets of Dutch investment funds increased by 0.5% quarter-on-quarter to EUR 512 billion in the second quarter of 2012. In the previous quarter, by contrast, total net assets had expanded by 6.7% QoQ. The number of Dutch investment funds declined by 32 to 1465 over the second quarter of 2012 (see Figure 1).

Figure 1 - Total net assets of Dutch investment funds

Dutch investment funds reported a net inflow of EUR 2.3 billion in the second quarter of 2012. Equity funds were the most popular among investors, with a net inflow of EUR 1.7 billion. Hedge funds (EUR 1.0 billion), real estate funds (EUR 0.3 billion) and other funds (EUR1.1 billion) also took in net inflows. Funds were withdrawn from bond funds (EUR-1.6 billion) and mixed funds (EUR -0.2 billion).

The net inflow originated mainly from institutional investors. Pension funds deposited EUR 3.8 billion and insurers EUR 0.1 billion. Households withdrew funds from Dutch investment funds (EUR 0.7 billion in 2012Q2) for the seventh consecutive quarter.1 Since end-2010, Dutch households have removed EUR 9 billion from Dutch investment funds (see Figure 2).2 The net sales of units in Dutch investment funds may reflect greater risk aversion among households.

Figure 2 - Households' investments in investment funds

Investment funds reported a negative total return of 0.2% QoQ in the second quarter of 2012 (see Figure 3). This loss was primarily caused by the capital loss on equity investments of 2.1% QoQ. The MSCI World index (benchmark, measured in euro) fell during the same period by 1.2% QoQ. Dutch investment funds chiefly invested in US equities (EUR 72.5 billion) and British equities (EUR 21.1 billion) at end-June 2012. An amount of EUR 10.0 billion was invested in Dutch equities.

A capital gain of 0.8% QoQ was realised on the investments in government bonds – largely consisting of bonds issued by euro area countries. Investments in corporate bonds yielded a capital gain of 1.3% QoQ. US corporate bonds account for around 37% (EUR 29.0 billion) of the total investments in corporate bonds.

Figure 3 - Return on Dutch investment funds

[note 1]For the net inflow from other sectors see Table 6.3 on the 'Investment funds' page on DNB's website.

[note 2]This amount includes the conversion of Rabobank Member Certificates in the fourth quarter of 2011. Households held around EUR 5.4 billion in Rabobank Member Certificates.