Swiss fund market down year-­on-­year

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Swiss fund market down year-­on-­year

In December 2018, the volume of assets placed in the investment funds covered by the statistics compiled by Swiss Fund Data AG and Morningstar stood at CHF1,041.3bn. This corresponds to a year-­on-­year decline of CHF44.8bn or 4.1%. The month-­on-month decline was similar at CHF42.2bn or 3.9%. Net outflows totaled CHF 2.0bn in December, but cumulative net inflows of CHF 8.1bn were recorded for the year as a whole.

The volume of assets entrusted by investors in Switzerland to the fund industry came to CHF 1,041.3bn in December 2018 (December 2017: CHF 1,086.1bn;; November 2018: CHF 1,083.5bn).

"For a long time, all signs pointed to a continuation of the prior year's positive trend as all regions were posting economic growth. Tax breaks in the US helped companies to achieve extraordinarily high earnings growth. The US stock market was breaking records up until the fall. Then, however, the mood turned in a big way. Geopolitical risks such as the trade dispute between the US and China as well as Brexit led to uncertainty across a broad front, triggering sharp falls in stock prices around the world. Swiss equities held up relatively well, with the SMI ending the year on a less pronounced loss (7.1%) than other indexes, but this caused volumes on the Swiss fund market to decline. Around CHF 2 billion was withdrawn from investment funds in December - a surprisingly small amount in view of the current market situation. Over the year as a whole, there were net inflows of some CHF 8 billion," said Markus Fuchs, managing director of the Swiss Funds & Asset Management Association SFAMA.

By comparison, the figures for selected indexes in December 2018 were as follows (November 2018 in brackets): Dow Jones -­8.66% (1.68%), S&P 500 -­9.18% (1.79%), EURO STOXX 50 -­5.41% (-­0.76%), SMI -­6.73% (0.17%), SBI 0.88% (0.33%), and Bloomberg Barclays US Aggregate Bond Index 1.84% (0.60%). The CHF gained 0.35% against the EUR and 1.54% against the USD.

Net outflows totaled CHF2.0bn in December 2018. Bond funds fared worst with outflows of CHF2.3bn, while money market funds fared best with inflows of CHF1.7bn. Looking at the year as a whole, the ranking was the other way round: bond funds attracted the most new money (CHF7.2bn), and money market funds suffered the biggest outflows (CHF3.3bn). There were no changes in the ranking of the most popular asset classes: equity funds 39.69%, bond funds 32.75%, asset allocation funds 11.47%, and money market funds 8.80%.

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