Dutch investment funds see assets soar to record level

Statistical news
Datum 13 december 2016

In the third quarter of 2016 total assets of Dutch investment funds reached an unprecedented EUR 823 billion. Assets under management were pushed up in particular by value increases of listed shares. Between them, equity and bond funds manage 69% of the assets in the sector, which again makes them the largest fund categories. The fastest growing funds, however, are in the mortgage fund category, which registered 15% growth in the past quarter, to EUR 22 billion.

In the third quarter of 2016, Dutch investment funds reached an all-time high, with assets under management growing by 2.2% to EUR 823 billion. Equity and bond funds remain the sector's largest fund categories, managing EUR 285 billion and EUR 280 billion in assets, respectively. Both types of funds now manage fewer assets than in the first quarter, however, when the sector's assets under management hit their previous record high. At that time, their total assets were EUR 300 billion and EUR 283 billion, respectively. The difference can be explained largely by the fast rise of mortgage funds, which invest predominantly in residential mortgage loans. DNB classifies these as other funds for statistics purposes. They grew from EUR 7.5 billion in the first quarter of 2015 to EUR 22.0 billion in the third quarter of 2016. The past quarter also showed an increase in their assets under management, by almost EUR 3 billion.

Figure 1 - Investments by Dutch investment funds Figure 2 - Total returns on investments by Dutch investment funds

Most of the increase in investment funds' assets seen in the past quarter was caused by a value increase in listed shares held by funds to the tune of EUR 13.2 billion. This means that equity funds, registering returns of 5.3% quarter-on-quarter, outperformed other fund categories (2.6% for the sector overall). Net deposits to equity funds worth EUR 5.0 billion likewise contributed to the rise in total assets.

Investments in Dutch bond investment funds remained roughly flat at around EUR 259 billion. Although bond funds saw their assets under management slip by EUR 3 billion quarter-on-quarter, they compensated for this mainly by disposing of assets other than bonds, such as units in other investment funds. Bond funds achieved positive returns, at 1.2% quarter-on-quarter.