At the end of the first quarter of 2014, the stock of investments in Russia by investment funds registered in Finland totalled EUR 0.7 bn. The investment stock contracted during the first quarter of the year by EUR 0.6 bn, reflecting uncertainty stemming from tensions in Ukraine. A total of EUR 0.4 bn of investments was liquidated, and negative revaluation adjustments reduced the value of investments by an additional EUR 0.2 bn. Investments made in Ukraine contracted by EUR 1.2 m in the first quarter of 2014 and totalled EUR 6 m at the end of March.
Investment funds’ investments in Russia
Fund capital continued to increase
Aggregate fund capital continued to increase, to EUR 77 bn at the end of the first quarter. Fund capital increased during the first quarter of the year by EUR 2.1 bn, of which over half (EUR 1.2 bn) was accounted for by new capital inflows. The rest of the increase (EUR 0.9 bn) reflected appreciation of investments.In the first quarter of 2014, Finnish insurance corporations invested EUR 0.6 bn in Finnish-registered investment funds, on net. Finnish insurance corporations’ holdings in Finnish investment funds have increased slightly: in March 2014 the sector’s ownership share was 25%, compared to 22% in March 2012. A significant proportion of insurance corporations’ fund holdings are related to unit-linked insurance policies, so that these holdings are, in fact, assets of households and other policy holders. In the first quarter of 2014, Finnish households’ direct fund investments amounted to EUR 102 m, on net.
Portfolio investments in the United States increased
In the first quarter of 2014, Finnish investment funds’ equity investments were mainly directed at the US markets, totalling EUR 0.4 bn, on net. Investments in debt securities in turn went mainly into the euro area: net investments in debt securities issued by the French and Italian governments totalled EUR 0.7 bn. In addition to investments in Russian equity, Finnish investment funds also liquidated investments in debt securities issued by the German and Swedish governments and debt securities issued by domestic non-financial corporations.
Key statistical data on investment funds registered in Finland, preliminary data
For further information, please contact:
Johanna Honkanen, Economist, tel. +358 10 831 2992, email: johanna.honkanen(at)bof.fi,
Iikka Korhonen, Head of BOFIT, tel. +358 10 831 2272, email: iikka.korhonen(at)bof.fi (Russia/Ukraine).
The next investment fund news release will be published on 31 July 2014 at 1 pm.