Investment funds’ financial statement data 2011

 Balance sheet items for investment funds registered in Finland, by fund type, 2011, EUR m1 includes fees paid to fund management companies and custodians
2 includes interest expenses and other expenses
3 includes accounts receivable, other receivables, accrued income, as well as cash and bank deposits
4 includes adjustments related to mergers and acquisitions, and other changes5 includes accounts payable, accrued expenses, other liabilities 

Investment funds reported losses of EUR 5.0 billion for 2011 In 2011, the total result of investment funds registered in Finland deteriorated to a loss of EUR 5.0 billion. Total results of investment funds had been positive in the two previous years. However, the result was not as weak as in 2008, when investment funds reported losses of no less than EUR 12.7 billion. Only 26% of the Finnish investment funds reported a positive result for 2011, whereas the proportion had been 91% one year earlier. The negative total result of investment funds was mainly due to a sharp drop in equity prices.
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
Dividend income and income from fund shares (EUR 0.6 billion) totalled at EUR 0.1 billion above the 2010 level. The increased dividend income and income from fund shares were largely based on the dividends paid out in 2011 for the excellent 2010 result. The bulk of dividend income and income from fund shares received by investment funds (EUR 0.6 billion) went to equity funds. In addition, the result of the financial year was improved by gains on disposal of securities amounting to an annual net amount of EUR 0.4 billion. In 2011, the aggregate fund capital of Finnish investment funds shrank by EUR 6.5 billion and amounted to EUR 55.7 billion at year-end. Most of the fund capital contraction (77%) was due to the loss in the financial year. Furthermore, investors redeemed fund capital worth a net amount of EUR 1.4 billion during the year.3  Investment funds distributed profits of EUR 0.1 billion to their shareholders, as in 2010. At the end of 2011, there were 519 operating investment funds registered in Finland, administered by 35 fund management companies. The Bank of Finland annually publishes a statistical release ‘Financial statements of investment funds’. The data are collected directly from investment funds registered in Finland. The publication also relies on data derived from monthly balance sheet reporting by investment funds to the Bank of Finland. 1 According to a Guideline of the European Central Bank (ECB/2007/9), investment funds are classified into six statistical types: equity funds, bond funds, mixed funds, hedge funds, real estate funds and money market funds.2 Other expenses include, among other things, interest expenses and exchange rate losses due to converting foreign currency financial items into euro.3 In the statistics on financial statements of investment funds, subscriptions of investment fund shares include smaller adjustments due to other changes. Source: Financial statements of investment funds 2011, Bank of Finland. Financial statements of investment funds, 2011 and key figures 1995-2011.xlsKey financial figures of fund management companies, 2009-2011 (Financial Supervisory Authority)
Income statement items for investment funds registered in Finland, by fund type, 2011, EUR m
	Equity funds	Bond funds	Mixed funds	Real   estate funds	Hedge funds	Money market funds	Total
RETURNS AND REVALUATIONS	-4 246	197	-358	-20	17	193	-4 217
Net income from securities	-4 913	-377	-410	-26	-76	-58	-5 860
Capital gains							6 683
Capital losses							-6 295
Unrealised value changes	-5 118	-509	-465	-24	-31	-99	-6 247
Net income from derivative contracts	-40	-25	-41	0	-9	-1	-117
Capital gains	344	540	389	1	126	12	1 412
Capital losses	-361	-518	-416	-1	-127	-13	-1 436
Unrealised value changes	-23	-47	-14	0	-8	0	-92
Dividend income and income from fund shares	557	7	47	5	5	0	621
Interest income	8	569	32	0	86	247	941
Other income	142	24	14	0	11	6	197
EXPENSES	-514	-136	-47	-2	-71	-38	-806
Fees1	-357	-122	-43	-2	-21	-36	-581
Other expenses2	-156	-14	-3	0	-49	-2	-225
NET PROFIT / LOSS FOR THE FINANCIAL YEAR	-4 760	62	-405	-22	-54	155	-5 024
	Equity funds	Bond funds	Mixed funds	Real estate funds	Hedge funds	Money market funds	Total
TOTAL ASSETS	19 325	19 458	4 610	125	1 417	11 425	56 360
Securities at market value	18 595	18 121	4 253	120	1 098	10 926	53 204
Receivables3	730	1 246	357	5	319	499	3 157
TOTAL LIABILITIES	19 325	19 458	4 610	125	1 417	11 425	56 360
Fund value 31 Dec	19 186	19 121	4 573	125	1 367	11 354	55 726
Net profit / loss for the financial year	-4 760	62	-405	-22	-54	155	-5 024
Profit distribution	-49	-77	-6	-1	0	-7	-140
Redemptions of IF shares	-11 669	-11 461	-927	-63	-994	-11 596	-36 710
Subscriptions of IF shares4	10 276	10 266	1 058	56	1 110	12 583	35 348
Fund value 1 Jan	25 387	20 332	4 854	156	1 305	10 218	62 252
Current liabilities5	140	337	37	0	50	70	635