Investment funds’ profits grew by a fifth in 2014

 

Investment funds registered in Finland recorded total profits of EUR 5.6 bn for the financial year 2014. Profits grew by almost EUR 1 bn, i.e. by about 21%, on the previous year. Based on the average fund capital1, the profit rate was 6.9%, compared to 6.4% in 2013. On the same basis, investment funds’ profit rate for the 5 previous years averaged 8%.


The financial result improved on 2013, particularly due to growth in capital gains from sales of securities (up EUR 0.7 bn), contraction in capital losses (down EUR 0.3 bn) and value changes (EUR 0.6 bn).

Among the different fund types, real estate funds showed particularly strong growth: their profit rates based on fund capital increased by 7.7 percentage points on the previous year. The profits of equity funds, in turn, contracted by 3.5 percentage points. Of all the investment funds operating in Finland, 84% recorded positive results, compared to 76% in 2013.

Investment fund expenses totalled EUR 1.2 bn. Expenses based on fund capital contracted from the previous year by about 14%, mainly due to lower interest expenses and other expenses. The highest expense rates were recorded by hedge funds (4.4%) and the lowest by money market funds (0.4%). Overall, investment funds’ annual expenses amounted to 1.4% of average fund capital.

The fund capital of investment funds grew by a total of EUR 10.7 bn during the financial year, to EUR 86.1 bn at the end of 2014. About half of the growth – EUR 5.3 bn – was due to net investments in funds and the remaining half was explained by the profits for the financial year.

At the end of 2014, there were 492 operating investment funds registered in Finland, administered by 31 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 2014 and key figures 1995-2014.xls

Key financial figures of fund management companies, 2011-2014 (Financial Supervisory Authority)

For further information, please contact:
Topias Leino, tel. +358 10 831 2315, email: topias.leino(at)bof.fi
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1 Here, average fund capital is calculated as the average of start and end-year total fund capital. 

   
 
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