The total fund capital of investment funds registered in Finland contracted by EUR 4.9 bn in the third quarter of 2015. At the end of September, the value of fund capital was EUR 93.7 bn, which was 5% less than at the end of June.

Movements in the total fund capital largely reflected declining share prices in almost all market areas relevant to domestic investment funds. The valuation change in fund capital was a negative EUR 4.6 bn, of which equity funds accounted for a whopping EUR 3.6 bn. The decline in share prices was particularly pronounced in China; Finnish investment funds’ holdings in Chinese shares decreased by 27%.

In addition to valuation changes, the total fund capital contracted due to redemptions. In July-September, a net amount of EUR 0.3 bn was withdrawn from domestic funds.


The decline in share prices was also evident in other euro area countries
 
As in Finland, the pronounced decline in share prices affected fund capital in the euro area as a whole; in August total euro area fund capital contracted sharply due to valuation changes. In Finland, the decline in fund capital due to valuation changes was 3.9% in August, compared to the almost identical 3.8% for the euro area as a whole.

                               Monthly developments in fund capital

Finnish investment funds' assets in the BRICS countries 2009–2014

Developments in Finland are usually closely aligned with those in other euro area countries, especially during periods such as these when fund capital dynamics are driven by valuation changes. The coincidence of trends is explained in part by the fact that a significant portion of domestic investment funds’ shareholdings are in foreign shares. In fact, valuation changes in their holdings of foreign shares accounted for more than 86% of the total valuation changes in Finnish investment funds’ shareholdings in the third quarter of 2015.

Key statistical data on investment funds registered in Finland, preliminary data

For further information, please contact
Tommi Aarnio, tel. +358 10 831 2480, email: tommi.aarnio@bof.fi
,
Topias Leino, tel. +358 10 831 2315, email: topias.leino(at)bof.fi.

The next investment fund news release will be published at 1 pm on 1 February 2016.

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