Risk attitude adjustment fails to dampen record April AUM in Sweden

Jonathan Boyd
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Risk attitude adjustment fails to dampen record April AUM in Sweden

Investment funds in Sweden saw SESK4.2bn (€409m) flow into balanced and bond funds on a net basis through April, which together with market movements helped boost total assets by SEK158bn (€15.4bn) to a new record of SEK4.196trn (€408.6bn) – despite equity and money market funds experiencing net withdrawals.

Over the month, balanced funds saw net inflows of SEK2.8bn, and bond funds SEK1.2bn. Hedge funds also garnered SEK1bn. However, equity and money market funds saw marginal net outflows of SEK0.4bn respectively.

Total net sales of investment funds through 2018 so far amounts to SEK12.4bn (€1.21bn), of which about half, SEK6.8bn, has been invested in balanced funds, data from the Swedish Investment Fund Association suggests.

Gustav Sjöholm, financial savings economist at the Association, said: “In April fund investors continued to prioritize lower risk by investing primarily in balanced funds and bond funds. Equity funds recorded for the third month in a row a net outflow.”

Again, the trend was the investor’s friend, with many stock markets globally seeing positive returns through the month. The Stockholm Stock Exchange saw the value of companies listed there rise 4%, including dividends, over the period, but still Sweden equity funds saw net withdrawals, while Nordic funds saw net inflows. Sweden funds have seen total net withdrawals this year so far of SEK11.8bn, compared to global funds, which have attracted a net SEK11.2bn. Equity overall still remains popular the data suggests, with 59% of total industry AUM in this asset class.

Index funds have also done well this year, attracting more than SEK11bn (€1.1bn) so far.