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Published: 12 July 2007

Households invested in mutual funds and deposits in 2006

In 2006 households invested a net amount of EUR 7 billion in financial assets. Most of this amount, nearly EUR 4 billion, was invested in mutual fund shares. Nearly EUR 2 billion was put into deposits. The popularity of deposits with an agreed maturity as a form of saving among households has started to grow again over the past few years. Households were still not interested in direct investments in shares. This data derive from the preliminary financial accounts compiled by Statistics Finland.

Households' financial assets grew by a total of EUR 15 billion in 2006. The growth slowed down somewhat from the previous year's EUR 18 billion. Of the growth in 2006, EUR 8 billion was due to risen value of investments, which was influenced in particular by the prolonged favourable development in share prices.

Households' net acquisitions of mutual fund shares 1997-2006, EUR billion

At the end of 2006, households had a total of good EUR 191 billion invested in financial assets. Bank deposits amounted to EUR 55 billion of that amount. A rise in stock markets pushed the value of quoted shares close to the record level reached in 1999; their value stood at EUR 27 billion at the end of 2006. Mutual fund shares grew to nearly EUR 18 billion, and their share of financial assets went up to good 9 per cent. The value of unquoted shares and other equity amounted to EUR 41 billion, as did the value of receivables related to individual life, pension and indemnity insurances.

Financial assets of households 1997-2006, EUR billion

Households' financial deficit deepened and the amount of debt continued to grow strongly during 2006. In 2006 household's acquisitions of new loans amounted to EUR 9 billion more than repayments of old ones. At the end of the year, households held loans to the value of EUR 78 billion and other liabilities to the value of EUR 9 billion. Households' indebtedness (proportion of loans relative to disposable income) rose to 98 per cent, which exceeds even the pre-depression levels. In international comparison the figure is, however, still not particularly high. In many EU countries indebtedness exceeds 100 per cent; in Denmark and the Netherlands it reaches levels in excess of 200 per cent. The data in the table are from the year 2005 and in addition to households they describe non-profit corporations.

Households' (incl. non-profit institutions) indebtedness in EU countries in 2005, per cent

Source: Eurostat

* year 2004

Investments abroad grew briskly

Especially employment pension schemes, banks and investment funds increased their investments abroad in 2006. Most of the net investments of a total of EUR 33 billion went to bonds, but as much as EUR 8 billion was invested from Finland into foreign mutual fund shares. At the turn of the year, EUR 341 billion worth of Finnish economic units' financial assets was invested abroad.

Foreign investments to Finland also grew clearly from the previous year. Foreign investments were made in particular into Finnish bonds and deposits. Shares also attracted foreign investors, who held a total of EUR 153 billion worth of Finnish shares at the end of 2006. The proportion of quoted shares was EUR 116 billion.

The financial accounts publication will be published in September. It includes information on e.g. the sources and methods used. Revised data for 2006 will be published in January 2008.

Source: Financial Accounts. Statistics Finland

Inquiries: Mr Matti Okko +358 9 1734 3341, Ms Reetta Varjonen +358 9 1734 3533 rahoitus.tilinpito@stat.fi

Director in charge: Mr Ari Tyrkkö

Financial accounts describe the financial assets and liabilities of the sectors of national economy and the financial transactions that influence their amounts. Financial accounts are compiled in accordance with the European System of Accounts (ESA 1995) in all EU member states. Statistics Finland compiles financial accounts covering all sectors annually, but data on general government and doImestic quoted shares are also available quartely.

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Appendix tables

• Households financial assets and liabilities 1996-2006 (Excel) (12.7.2007)

Figures

• Change in financial assets of households 1997-2006, EUR billion (12.7.2007)
• Emissions of quoted shares by non-financial corporations, net* 1997-2006, EUR billion (12.7.2007)
• Financial assets of households 1997-2006, EUR billion (12.7.2007)

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Last updated 12.7.2007