SEK10bn to investment funds in September - Sifa

Jonathan Boyd
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SEK10bn to investment funds in September - Sifa

Data published by the Swedish Investment Fund Association points to SEK10bn (€922m)of net inflows in September, predominantly in fixed income funds, with equity funds experiencing net outflows.

Short-term bond funds attracted SEK6.2bn on a net basis, with long-term bond funds attracting SEK4.4bn.

Balanced funds saw net inflows of SEK2.2bn. However, equity funds saw SEK2.5bn flow out, and hedge funds saw SEK0.3bn flow out.

Total net inflows over the first three quarters of 2019 hit SEK53.3bn (€4.9bn), of which most has gone to long-term bond funds and equity funds.

Together with September's net inflows and market movements, total assets of investment funds in Sweden increased SEK76bn (€7bn) to SEK4.789trn (€441bn).

Gustav Sjöholm, savings economist at the Association said: "Uncertainty among Swedish investors is clear. When stock market sentiment is thrown between hope and despair, investors will turn down risk and buy balanced funds and bond funds. As usual it is important to remind the individual investor of the value of being long term, and that the biggest risk in long term savings is actually not to take any risk at all."

Looking at sector, the data suggests larger withdrawals hit North America, Nordic, Europe and Sweden equity funds. Sector funds also experienced outflows.

In fixed income, it was corporate bonds that accounted for a significant share of net inflows.

 

 

Jonathan Boyd
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Jonathan Boyd

Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope.