Investors in Sweden added a net SEK127bn (€12bn) to their funds thruogh 2019, as market movements helped take total industry assets above SEK5trn (€473bn) for the first time, equivalent to a rise of about 27%, reports the Swedish Investment Fund Association (Fondbolagens förening).
The performance of stock markets was key to the gains, while long bond and equity funds respectively attracted most of the net new flows, of SEK60bn and SEK55bn respectively. Balanced and short term bond funds also attracted net inflows, while hedge funds experienced net outflows across the full year.
At the end of December 2019, total assets hit SEK5.055trn, an increase of some SEK1.077trn (€101bn) for the year. This means some SEK950bn of the increase came from market movement.
The Association notes that the average equity fund gained some 29% thorugh 2019, although some areas did even better: Sweden funds averaged an increase in value of 34%, while global equity funds gained some 30%.
Russia funds returned 47% thorugh the year.
In terms of net inflows, global equity funds and sector funds did well (SEK80bn and SEK17bn respectively), while net outflows were experienced by Europe, Nordic, North America and emerging market funds.
Interest in index funds continued to grow, with SEK54bn of SEK55bn total net inflows to equity funds going to index funds. At the end of the year, index funds accounted for some 18% of total equity assets.
In fixed income, some SEK24bn out of a total SEK60bn of net inflows went to corporate bonds.