In the third quarter of 2009, the euro area investment fund sector increased by 10.6% as compared to the second quarter, from EUR 4.3 to 4.7 trillion. This development mainly resulted from sizeable increases in the prices of assets held by the investment funds and to a somewhat lesser extent from their large net sales of shares or units (net inflows due to transactions).

The amount outstanding of shares/units issued by euro area investment funds other than money market funds increased to EUR 4,730 billion at end-September 2009, from EUR 4,277 billion in June 2009. Over the same period, the amount outstanding of shares/units issued by euro area money market funds decreased to EUR 1,256 billion from EUR 1,272 billion.

The transactions in shares/units issued by euro area investment funds other than money market funds amounted to EUR 180 billion during the quarter ending in September 2009. Since end-December 2008, these net inflows due to transactions have amounted to EUR 250 billion, corresponding to 6.2% of the amount outstanding at end-December 2008. The transactions in shares/units issued by money market funds amounted to EUR -5 billion during the third quarter of 2009, and to EUR 16 billion over the first three quarters of 2009. This equals 1.3% of the amount outstanding at end-December 2008.

Regarding the assets of euro area investment funds other than money market funds, the amount outstanding of securities other than shares was EUR 1,998 billion at end-September 2009, which equals an increase of 17% since December 2008. Transactions during the third quarter amounted to EUR 69 billion. In the case of shares and other equity the corresponding amount outstanding was EUR 1,543 billion (an increase of 33% since end-2008), with third-quarter transactions of EUR 109 billion. For holdings of investment fund shares/units the amount outstanding was EUR 681 billion (10% more than at the end of 2008), with third-quarter transactions of EUR 10 billion.

In terms of the breakdown by investment policy of euro area investment funds other than money market funds, shares/units issued by bond funds stood at EUR 1,531 billion at end-September 2009, accounting for 32% of the total amount outstanding of investment fund shares/units. The transactions in shares/units issued by bond funds amounted to EUR 57 billion during the third quarter of 2009. The corresponding amount outstanding of equity funds shares/units was EUR 1,345 billion (28% of the total) and transactions were EUR 104 billion. For mixed funds, the respective amounts were EUR 1,165 billion (25% of the total) and EUR 21 billion.

Regarding the assets of euro area money market funds, the amount outstanding of securities other than shares was EUR 1,004 billion at end-September 2009 (of which EUR 390 billion was issued by noneuro area residents), with transactions amounting to EUR 15 billion during the third quarter. The amount of deposit and loan claims outstanding was EUR 183 billion and transactions equalled EUR -16 billion. For holdings of money market fund shares/units, the amount outstanding was EUR 75 billion and transactions were EUR -5 billion.