Investment funds profit from price gains on equities and bonds

Statistical News Release
Date 15 November 2012

During the third quarter of 2012, total assets in Dutch investment funds rose by 4.4% quarter-on-quarter to EUR 536.1 billion (see Figure 1).

The previous quarter had seen a 0.7% increase quarter-on-quarter. The rise was mainly due to price gains on investments and to a lesser extent to net deposits. The number of investment institutions decreased by 10 to 1,494.

Total net assets of Dutch investment funds

The investment funds realised positive total returns of 3.7% quarter-on-quarter. The price gains on investments in equities and those on bonds both had a positive impact on returns (see Figure 2). The price gains on investments in equities amounted to 4.7% quarter-on-quarter in the third quarter of 2012. The MSCI World Index (benchmark, measured in euros) also rose by 4.7% quarter on quarter in this period. Investments in sovereigns – approximately 85% of which is in bonds from euro area countries – yielded 2.9% quarter-on-quarter price gains. This is in line with the increase of the iBoxx Euro Sovereign All Maturities Index (a benchmark) by 2.9% quarter-on-quarter. Investment funds realised price gains of 2.0% quarter-on-quarter on their corporate bond portfolios.

Return on Dutch investment funds (in % QoQ)

Net deposits with investment funds totalled EUR 6.7 billion in the third quarter of 2012. With EUR 6.3 billion, bond funds by far reported the highest net deposits. Hedge funds (EUR 0.4 billion), real estate funds (EUR 0.1 billion) and other funds (EUR 0.6 billion) also showed net deposits. Equity funds (EUR -0.5 billion) and mixed funds (EUR -0.2 billion) saw net withdrawals. Net deposits almost entirely originated from pension funds (EUR 8.2 billion). For the eighth quarter in a row, households withdrew money from Dutch investment funds (EUR -0.7 billion in the third quarter of 2012). Households so far withdrew EUR 1.6 billion from Dutch investment funds in 2012, as they did in the same period last year.