Positive returns for Dutch investment funds

Statistical news
Datum 17 augustus 2016

The first quarter of 2016 has seen assets managed by Dutch investment funds rise to EUR 805.1 billion from EUR 766.7 billion, largely as a result of record total returns of 3.5% (EUR 26.8 billion). This was the best result since the first quarter of 2015. Mortgage funds continued to grow as investors made new deposits and now represent a total of EUR 19.1 billion in outstanding Dutch mortgage loans.

At the end of June 2016, Dutch investment funds managed assets worth EUR 805.1 billion (see Figure 1). After four consecutive quarters of growth, the new level approaches the March 2015 record level of EUR 814.9 billion. At the same time, the number of Dutch funds remained relatively stable, at 1821.

Figure 1 - Investments by Dutch investment funds Figure 2 - Dutch investment funds returns

Investments funds' asset growth was pushed up in particular by 3.5% quarter-on-quarter total returns. This is the highest total return level since the first quarter of 2015. Quarter-on-quarter price gains on equity investments were 2.8% in the first quarter (see Figure 2), in line with the rise in equity indices, such as the MSCI World Index, which was up by 2.9%. Bond and real estate funds also showed high returns of 3.6% and 3.2% respectively. Real estate funds returns were mainly driven by profits on indirect real estate investments such as equity and investment fund shares. Mixed funds and hedge funds achieved returns of 1.7% and 1.5% respectively. However, the highest returns could be seen in the 'other funds' category (5.9%).

Figure 3 - Outstanding residential mortgage loans from Dutch investment funds

This category mainly comprises commodity funds, private equity funds and mortgage funds. Over the past year these funds showed rapid growth, doubling their balance sheet total. The total of Dutch mortgage loans in investment funds outstanding to Dutch private individuals amounted to EUR 19.1 billion, an all-time record (see Figure 3). Growth was up 2.3 billion (14.0% quarter-on-quarter) from the previous quarter.

In the second quarter of 2016, the assets of Dutch investment funds invested in other investment funds reached a record level of EUR 112.4 billion. 52% of this total is invested in funds from the US, Luxembourg and England, while 27% is invested in other Dutch investment funds. Funds investing more than 50% of their portfolio in other investment funds are also known as funds-of-funds. In DNB's investment fund statistics, they are classified under the category of the funds they invest in.