Investment funds’ profits contracted from the previous year

 

Profit developments of investment funds registered in Finland stabilised from the previous year but remained robust. Investment funds reported profits of EUR 4.6 bn for 2013, compared to EUR 6.6 bn for a year earlier. As much as 76% of domestic investment funds recorded positive results, compared to no less than 93% in 2012.  


The financial results were positive for almost all fund categories: only hedge funds’ and money market funds’ results deteriorated to losses on the previous year. Equity funds accounted for by far the largest share of the aggregate profit for the financial year, EUR 3.6 bn. Bond funds and mixed funds recorded profits of EUR 0.4 bn and EUR 0.6 bn, respectively.

The positive financial result was mainly due to capital gains from securities transactions and unrealised value appreciation of securities holdings. Realised securities transactions made a net contribution of EUR 2.2 bn to the result, and unrealised value appreciation for securities holdings was reported at EUR 1.5 bn. Dividend income from shares, income from fund shares and interest income remained at the previous year’s level and boosted the financial result by EUR 1.6 bn. The result was also pushed up by other income1 which totalled EUR 0.3 bn.

The financial result was negatively affected by investment fund expenses, which increased EUR 0.1 bn from the previous year, to EUR 1.2 bn in 2013. Fees paid to fund management companies and custodians totalled EUR 650 m, compared to EUR 580 m in 2012. The item consists mainly of administrative fees paid to fund management companies. Other expenses2 amounted to EUR 530 m.

The aggregate fund capital of domestic investment funds grew by EUR 8.6 bn during the year, totalling about EUR 75 bn at the end of 2013. About half of the growth (EUR 4.2 bn) was due to new capital inflows.3 Profits for the financial year, in turn, boosted the aggregate fund capital by EUR 4.6 bn. As in the previous year, investment funds distributed profits of EUR 0.1 bn to their shareholders in 2013. At the end of 2013, there were 517 operating investment funds registered in Finland, administered by 31 fund management companies.

The Bank of Finland annually publishes a statistical release "Investment funds' financial statement data". The data are collected directly from investment funds registered in Finland. The publication also uses data from monthly balance sheet reporting by investment funds to the Bank of Finland.

 

Financial statements of investment funds 2013 and key figures 1995-2013.xls

Key financial figures of fund management companies, 2011-2013 (Financial Supervisory Authority)


For further information, please contact:
Johanna Honkanen, tel. +358 10 831 2992, email: johanna.honkanen(at)bof.fi.

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1 Other income includes eg premia on securities lending and remuneration corresponding to unpaid cash dividends as well as exchange rate gains from euro-conversion of foreign-currency financial assets.​
2 Other expenses include eg interest expenses and exchange rate losses from euro-conversion of foreign-currency financial assets.
3 In the statistics on investment funds’ financial statement data, the item ‘subscriptions of investment fund shares’ includes small amounts of other adjustments.

 

   
   
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