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Investment Funds

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This chapter looks at the trends in the non-money market funds (non-MMF) investment funds sector (S.124) between 2009 and 2018. It consists of all collective investment schemes, except those classified in the MMF sector, which are principally engaged in financial intermediation. Their business is to issue investment fund shares or units which are not close substitutes for deposits, and on their own account, to make investments primarily in financial assets, other than short-term financial assets, and in non-financial assets (usually real estate).

(AF.2) Currency and Deposits(AF.3) Debt Securities(AF.4) Loans(AF.5) Equity and Investment Fund Shares/Units(AF.7) Financial Derivatives and Employee Stock Options(AF.8) Other Accounts ReceivableTotal
200920.112150.080.377261.26111.8716.353460.053
201025.053235.0770.314342.34219.01123.706645.503
201144.891357.38116.278346.22419.19834.675818.648
201264.095441.03516.898421.44832.2642.2351017.97
201356.753480.79414.688532.57143.42852.0981180.332
201458.461559.4915.115691.12228.44476.4451629.075
201577.116615.19631.342786.816168.378100.661779.508
201667.519745.26733.795848.788161.02663.5791919.974
2017122.583875.73369.178988.67489.75772.8722218.797
2018135.643932.19773.651999.88992.47783.5042317.361

Get the data: StatBank (IFI03)

Between 2009 and 2018 the balance sheet of investment funds grew significantly from €460bn to €2.3 trillion. The increase in assets was mainly driven by debt securities (AF.3), equity and investment funds (AF.5). Part of the increase in recent years is due to the reclassification of money market funds (S.123) which led to some assets being redefined as investment funds (S.124).

(AF.4) Loans(AF.5) Equity and Investment Fund Shares/Units(AF.7) Financial Derivatives and Employee Stock Options(AF.8) Other Accounts ReceivableTotal
20092.581441.1415.8939.82459.435
20103.899604.10210.1427.507645.648
20116.475768.66710.07833.502818.722
201222.463931.75134.91129.2251018.35
201337.0321069.71940.31433.7481180.812
201417.5561275.172220.448121.2041634.381
201537.5581432.189161.926168.1561799.829
2016119.941590.006153.59255.5811919.119
2017192.9111872.69380.96254.0672200.633
2018233.4441903.24289.29166.7612292.738

Get the data: StatBank (IFI03)

The expansion in the liabilities of investment funds was mainly driven by equity and investment funds (AF.5), comprising 83% of the total in 2018. The growth in financial derivatives and employee stock options (AF.7) was partly due to changes in the reporting basis in 2014.

200920132018
Denmark115.5003253.3976293.0954
France910.0291062.6671318.825
Germany 968.3361363.5321995.362
Ireland460.0531180.3322317.361
Italy141.938173.683263.222
Luxembourg1710.09372745.85914306.443
Netherlands449.474629.342817.882
Poland23.178750.586473.4993
Spain187.707182.812290.248
United Kingdom631.51111098.80051341.2339

Get the data: Eurostat

The investment fund assets of each observed country rose between 2009 and 2018. The size of the investment fund sector in Ireland experienced a significant increase between 2009 and 2018. Ireland has the second largest balance sheet in Europe in 2018, after Luxembourg.

BondsEquitiesHedgeMixedReal EstateOtherTotal
2009114.809208.85248.7350086.233458.63
2010192.716267.3261.72900123.791645.556
2011333.962261.49674.55459100148.636818.648
2012427.807309.042100.36500181.5381018.752
2013470.719411.701117.20200181.7481181.369
2014579.37522.629186.277184.14510.69868.7091551.828
2015615.708612.16220.725235.60714.893.9741792.974
2016632.397632.378161.928230.23218.609262.8161938.359
2017698.286766.489189.209252.28124.352311.2092241.828
2018710.981741.335225.36273.23626.686350.1682327.767

Please note: 'Mixed and Real Estate' assets were included in 'Other' prior to 2014.

Get the data: Central Bank of Ireland

The increase in the balance sheet of Investment Funds that are resident in Ireland was mainly driven by equity and bond funds. These funds together comprise more than 62% of the total assets between 2009 and 2018. Real-estate funds do not play a major role in the Irish investment funds sector. 

InflowsOutflowsNet Income (right axis)
20098.7518809169.144021743-392.140827
201011.27351033211.470079097-196.568765
201111.48475394811.80116763-316.413682
201213.8264477414.464271435-637.823695
201315.77774309716.21057093-432.827833
201423.93444383324.368213182-433.769349
201527.55145395927.763888982-212.435023
201632.10701145232.563812592-456.80114
201736.96328560238.057572816-1094.287214
201843.22794196245.322144556-2094.202594

Source publication: International Accounts

Show Table: Table 5.1 Portfolio Investment Income Flows of Investment Funds, 2009-2018

Portfolio investment income is the return on cross-border investments from investors who do not own a controlling stake in the entity in which they are investing. The income inflows are driven by dividends and interest, while the income outflows consist of dividends.

Between 2009 and 2018, both inflows and outflows increased annually.

The Irish investment fund sector had a negative income every year between 2009 and 2018, which is mainly due to capital gains being paid out as income. In 2018 net income fell to -€2.1bn, the low point of the observation period.

Income on Equity (Dividends)Income on Debt (Interest)
20092.1456108646.606270052
20103.5512734077.722236925
20113.686566997.798186958
20123.2990380889.216671881
20135.13558348310.642159614
20147.27481074716.659633086
20158.53032691919.02112704
201611.28127547420.825735978
201712.8334085524.129877052
201814.88400594928.343936013

Source publication: International Accounts

Show Table: Table 5.2 Portfolio Investment Income Inflows of Investment Funds (by type), 2009-2018

Income inflows comprise of income on equity and income on debt. In 2018, 66% of the income came from interest. Because of increasing debt asset positions, investment funds in Ireland have earned more interest in recent years.

Portfolio Investment Income of Investment FundsOther Portfolio Investment Income
200934.204244133733665.7957558662664
201044.880999999724955.1190000002751
201148.693130027692651.3068699723074
201255.449709203056344.5502907969437
201361.58519341489438.414806585106
201472.72161037320227.278389626798
201576.956221733824723.0437782661753
201678.72399876841621.276001231584
201781.136144928177818.8638550718222
201885.237019996641214.7629800033588

Source Publication: International Accounts

Show Table: Table 5.3 Share of Portfolio Investment Income Inflows, 2009-2018

Looking at the share of the portfolio investment income inflows of Investment Funds in Ireland in the total portfolio investment income, one can see an increase in this share throughout the whole period considered.

In value terms, the other portfolio investment income decreased consistently in the observed period to €7.5bn in 2018, while the income inflows of investment funds increased since 2009 resulting in €43.2bn in 2018. In 2012, the share attributed to portfolio investment income of investment funds exceeds 50% for the first time.

!-- The Financial Sector in Ireland's National Accounts - P-FSINA2018 FIG5.8 Created: 2020/1/13 12:13 -->
FranceGermanyJapanNetherlandsUnited KingdomUnited StatesRest of the World
20184.002010059351083.261366568729093.942817433190432.8063869183164421.359031006523635.046222310753429.582165703136

Get the data: StatBank (BPA32)

In 2018 investment funds resident in Ireland held €1.8bn of foreign securities which constitute about 76% of their total financial assets. Together the UK, France, Germany, Japan and the Netherlands comprise about 35% of the foreign held securities in Ireland. Securities issued in the USA also comprise approximately 35% of the total held foreign securities in Ireland. The rest of the world accounts for the remaining 30% of securities.


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