March 2012

Commentary on aggregated sectoral balance sheet

Net assets value:

The net assets value of collective investment funds (CIFs) was CZK 151.7 billion at the end of March. This means a decrease of CZK 0.3 billion compared to February (monthly transactions accounted for CZK +0.7 billion). Compared to the same period last year, the net assets value rose by CZK 31.3 billion. The biggest month-on-month change in the net assets value was recorded for real estate funds, up by CZK 0.8 billion to CZK 20.8 billion (monthly transactions accounted for CZK +0.5 billion).

Investment in bonds:

The value of bond holdings was CZK 64.7 billion in March. Compared to the previous month, the total volume of bonds fell by CZK 0.7 billion (monthly transactions accounted for CZK -0.3 billion). The proportion of securities other than shares in the funds’ net assets value decreased compared to February, down by 0.4 percentage point to 42.6%.

Investment in equity securities:

The volume of equity securities in the funds’ portfolio increased in March. As of the end of the month, the value of holdings of equity securities amounted to CZK 45.5 billion, of which CZK 19.2 billion was investment in collective investment funds (including money market funds) and CZK 26.3 billion was investment in shares and other equity. The value of equity securities picked up by CZK 0.5 billion compared to February (monthly transactions accounted for CZK +1.0 billion). The share of equity securities in the funds’ net assets value also increased, from 29.6% in the previous month to 30.0%.

Other investment:

The value of funds invested in other assets increased in the period under review. The volume of investment in other assets was CZK 54.1 billion in March (monthly transactions accounted for CZK +1.4 billion), of which CZK 20.6 billion was fixed investment and CZK 23.0 billion investment in deposits. The proportion of other investment in the funds’ net assets value showed a month-on-month increase, from 34.8% to 35.7%.

Reporting population:

In March 2012, a total of 214 resident collective investment funds were active in the Czech Republic, of which 29 were equity funds, 41 bond funds, 57 mixed funds, 80 real estate funds and 7 other funds. Four new collective investment funds were established during the period under review and two funds ceased to exist.

Balance sheet total - breakdown by asset item	Net assets value - breakdown by investment policy

Notes:

• Collective investment funds mean investment and mutual funds other than money market funds. In accordance with Regulation of the European Central Bank concerning the balance sheet of the monetary financial institutions sector (ECB/2008/32), money market funds fall into this sector and the data for money market funds are not part of the CIF statistics. However, for completeness, data for money market funds are also published together with the statistics on collective investment funds.
• Transactions mean changes in stocks which occurred during the relevant period owing to purchases/sales of the given instrument. Monthly transactions are calculated from differences in outstanding amounts adjusted for reclassifications, other revaluations, exchange rate variations and other changes which do not arise from transactions (non-transaction effects).
• Other investment means funds invested in other assets than bonds and equity securities (especially deposits, loans and real estate).
• Data for collective investment funds are available in the ARAD time series system.