Dutch money market funds limited in size

Statistical News Release
Date 2 May 2013

As money market funds invest in short-term bonds, money market papers and time deposits, both their risk profile and their expected return are relatively low. In principle, investors use money market funds to diversify their investment portfolios and to temporarily warehouse surplus funds. In some countries, money market funds are also used as an alternative to low-return savings accounts.

In 2012, money market funds’ total net assets worldwide increased by EUR 4 billion to EUR 3,663 billion (see Figure 1)(note 1). Net new deposits amounted to EUR 2 billion in 2012. Between 2009 and 2011, investors withdrew a total of EUR 1,083 billion from money market funds. The scope of the money market funds is the largest in the United States (EUR 2,041 billion), followed by France (EUR 364 billion), Ireland (EUR 288 billion), Australia (EUR 261 billion) and Luxembourg (EUR 260 billion).

Money market funds worldwide

Source: EFAMA.

In the Netherlands, money market funds have been limited in size for years now (see Figure 2). In 2012, the balance sheet total of the 16 Dutch money market funds remained stable at EUR 2.0 billion compared to a year earlier (note 2). By comparison, the balance sheet total of the Dutch investment fund industry amounted to EUR 583.8 billion at year-end 2012.

* f
Dutch money market funds

eeder funds were disregarded in the balance sheet total (to avoid double counting).
Source: DNB



Note 1: According to EFAMA (European Fund and Asset Management Association) figures. EFAMA is the representative association for the European asset management and investment fund industry.
Note 2: These are figures on money market funds established in the Netherlands. Foreign money market funds on offer in the Netherlands are not included. Because of their limited size, Dutch money market funds are exempt from the requirement to report monetary and financial statistics to DNB. The figures in this Statistical News Release were collected by means of an annual investment fund manager survey.