Market turmoil sparks equity redemptions in Sweden
Investment funds in Sweden saw net outflows totalling SEK10.8bn (€1.1bn) in January as local investors took fright from uncertainty in markets, according to latest industry figures from the Swedish Investment Fund Association.
The bulk of the net withdrawals came from equity funds, although money market funds recorded slight net deposits, as total fund assets fell by some SEK160bn (€16.8bn) through the month to SEK3.088trn (€324.8bn).
Equity fund outflows hit SEK15.5bn, of which SEK5.8bn came out of Sweden equity funds – unsurprising given that the stock market in Stockholm recorded a fall of over 7% including dividends. There is often correlation between the performance of the local stock market and net inflows or outflows from the Sweden equity sector.
North America equity was another sector that saw significant net outflows; some SEK2.7bn went out of funds here.
Fredrik Pettersson (pictured), chief analyst at the Swedish Investment Fund Association, said: “The turmoil in global equity markets affected net sales of investment funds in January. But although equity funds recorded net outflows, it may be worth noting that most fund savers are long-term investors and that the net withdrawals represents under 1% of the total assets held in equity funds.”
(Source: Swedish Investment Fund Association)