Dutch investment funds' assets under management up slightly

Statistical news
Datum 23 mei 2016

The first quarter of 2016 saw total assets managed by investment funds increase by 0.5%. Pension funds' investments in the sector are the main driver of this growth. The sector has used these deposits to purchase securities and invest in newly extended mortgage loans.

In the first quarter of 2016, capital invested by investment funds increased slightly by 0.5% (EUR 3.7 billion), relative to the previous quarter (Figure 1). Total assets managed by the sector have risen from EUR 762.6 billion to EUR 766.3 billion (quarter-on-quarter). The highest increases were in assets managed by bond funds (EUR 5.3 billion) and other funds, such as commodity and mortgage funds (EUR 4.6 billion). Assets managed by real estate funds also grew but to a lesser extent, by EUR 1.0 billion. At the same time, assets held by equity funds and hedge funds decreased by EUR 3.7 billion and EUR 3.6 billion, respectively.

In the past quarter investment funds invested EUR 6.7 billion in listed shares and long-term bonds. This is equal to 1.3% of the total portfolio of the funds that invest in these two asset classes. On balance, investment was primarily in shares and bonds held by non-financial institutions and bonds held by the banking sector. In both cases investment funds mainly acquired securities outside the euro area. They also invested in Dutch mortgage loans. Mortgage funds extended new mortgage loans amounting to EUR 2.7 billion in the past quarter, equal to a 16.7% quarter-on-quarter increase in the portfolio of mortgage funds.

These investments were financed with total positive net deposits in investment funds amounting to EUR 5.9 billion (see Figure 2). Although insurers made withdrawals from investment funds (EUR 4.2 billion), pension funds invested heavily in the sector (EUR 8.9 billion). Moreover, foreign parties invested EUR 1.1 billion in Dutch funds. There were minimum total returns in the past quarter and they did not contribute to growth in the sector.