Non-MMF investment funds

Non-MMF investment funds correspond to subsector S.124 of the economic sectorisation, according to the European System of Accounts 2010.

The collective investment schemes included in the subsector can take the form of a fund, without legal personality, or a company, with legal personality. In the first case, the management of the entity must necessarily be carried out by a management company (classified in the ‘financial auxiliaries’ subsector, S.126 in the sectorisation of the European System of Accounts 2010).

The activity of the entities included in this subsector consists of raising funds from participants/shareholders (investors) through the issuance of units in investment funds/shares in investment companies, to subsequently invest them in financial and non-financial assets (usually real estate). In turn, investors share in the risks and benefits of the fund/company in proportion to the number of units/shares they hold, which allows them to diversify their portfolio with very small investment amounts.

It should be noted that the term ‘non-monetary investment funds’ may refer not to the subsector, but to a part of the entities included in it. Specifically, this term applies to those collective investment institutions without legal personality whose investment cannot be primarily materialized in money market assets.

The entities that make up this subsector are:

• securities investment funds, excluding money market funds
• Investment companies with variable capital
• free investment collective investment institutions
• collective investment institutions of free investment collective investment institutions
• real estate investment funds and companies
• venture capital funds
• SME venture capital funds
• European venture capital funds
• European social entrepreneurship funds
• closed-end collective investment funds.
• European long-term investment funds

Finally, no collective investment scheme may present essentially similar characteristics in its portfolio of financial assets to those of the funds included in the ‘money market funds’ subsector (S.123 in the sectorisation of the European System of Accounts 2010) unless it has obtained the corresponding authorization.

Webpage with statistical information on financial institutions.