Caution marks Swedish fund flows in August

Data from the Swedish Investment Fund Association suggests that local investors took a more cautious approach than in previous months, leading to net industry outflows of SEK3.4bn (€356m), primarily from equity funds.

Net outflows from equity funds hit SEK3.3bn (€345m), with an additional outflow of SEK0.3bn from money market funds.

In contrast, net inflows were recorded by long term bond funds, of some SEK0.5bn (€52m). The data points to the corporate bonds sector being particularly attractive through the month.

So far this year, net new savings into funds have hit SEK63.2bn (€6.62bn), with some SEK20bn going to equity funds, SEK19.2bn to balanced funds, and SEK16.7bn to bond funds – suggesting that August bucked the year to date trend.

The Association notes that August saw weakness in stock markets globally, which was reflected in the local investor trends. Swedish and North America equity funds saw the biggest net outflows, although global and emerging market funds saw net inflows.

Another trend noted so far this year is the size of net flows to index funds: some SEK25.7bn (€2.69bn)of net inflows have been recorded going to this type of vehicle so far in 2017.

Total assets fell by SEK29bn through the month, taking total industry assets to SEK3,752bn (€393bn), although since the start of 2017, assets have increase by SEK184bn (€19.3bn).

About 58% of industry assets are in equity funds, the Association adds.

Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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