Commentary on the aggregated balance sheet of investment funds

September 2020

Commentary on the aggregated sectoral balance sheet

Net assets value

The net assets value of investment funds was CZK 582.2 billion at the end of September. This means an increase of CZK 3.9 billion compared to August (monthly transactions accounted for CZK +3.6 billion). Compared to the same period last year, the net assets value of investment funds rose by 8.3%. The biggest month-on-month change in the net assets value was recorded for other funds, up by CZK 3.4 billion to CZK 80.5 billion.

Investment in bonds

The value of bond holdings was CZK 137.4 billion at the end of September. Compared to the previous month, the total volume of bonds in the funds’ portfolio decreased by CZK 2.8 billion (monthly transactions accounted for CZK -5.2 billion). The proportion of debt securities in the funds’ net assets value declined to 23.6% compared to the previous month.

Investment in equity securities

During the month under review, the volume of equity securities in the funds’ portfolio increased. As of the end of the month, the value of holdings of equity securities amounted to CZK 271.3 billion, of which CZK 125.4 billion was investment in the shares and units of investment funds and CZK 145.9 billion was investment in shares and other equity. The value of equity securities grew by CZK 5.6 billion compared to August (monthly transactions accounted for CZK +0.2 billion). The share of equity securities in the funds’ net assets value increased to 46.6% compared to the previous month.

Other investment

The value of funds invested in other assets increased in the period under review. The total volume of other investment was CZK 216.2 billion in September, of which CZK 50.5 billion was fixed investment and CZK 73.4 billion investment in deposits. The proportion of other investment in the funds’ net assets value increased to 37.1% compared to the previous month.

Reporting population

At the end of September 2020, a total of 540 resident collective investment funds were active in the Czech Republic, of which 63 were equity funds, 61 bond funds, 79 mixed funds, 87 real estate funds, 246 other funds and four funds without an investment policy.

Balance sheet total – breakdown by asset item

Balance sheet total – breakdown by asset item – chart

Net assets value – breakdown by investment policy

Net assets value – breakdown by investment policy – chart


Notes:

  • 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/2013/33), money market funds fall into this sector and the data for money market funds are not part of the investment fund statistics.
  • 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, price changes, exchange rate variations and potential other changes which do not arise from financial transactions (non-transaction effects).
  • Other investment is understood to mean funds invested in assets other than bonds and equity securities (especially deposits, loans and real estate).
  • The time series for investment fund statistics are available in the ARAD time series system.