Equity funds’ share of the aggregate loss of investment funds was by far the largest at EUR 4.8 billion. Equity funds were also the most significant fund category1 in terms of fund capital in 2011, so their impact on the total result of investment funds was large. Mixed funds also suffered from weak market developments and reported total losses of EUR 0.4 billion for the financial year. Only bond funds and money market funds reported positive total results for the financial year.
Mainly the negative result was formed by unrealised value depreciation of investment funds’ security holdings, which was reported at a total of EUR 6.2 billion in 2011. In addition, the result of the financial year was weakened by investment funds’ increased expenses. Expenses totalled EUR 0.8 billion in 2011. The increased expenses were particularly attributable to other expenses (EUR 0.2 billion), which continued growing in the same way as in 2010.2 Fees paid to fund management companies and custodians, which make up most of all investment fund expenses, remained unchanged (EUR 0.6 billion) compared to 2010.
The deterioration of the result of the financial year was in turn dampened by increased interest income, dividend income and income from fund shares. The reported interest income amounted to more than EUR 0.9 billion. Interest income was at the highest level in three years in 2011. Most of the reported interest income was recognised under bond funds (EUR 0.6 billion) and money market funds (EUR 0.2 billion).
Net profit of investment funds, 2000-2011
Investment funds' dividend income and income from fund shares, 2007-2011