Balanced funds in demand in March – Swedish data
Figures published by the Swedish Investment Fund Association suggest that investors locally bought into balanced funds on a net basis, while selling out of equity funds.
Total net inflows hit SEk1.9bn (€197m) over the month, although equity fund withdrawals hit SEK6.8bn (€707m), against balanced fund inflows of SEk4.6bn (€478m).
Money market funds saw SEK1.4bn (€145m) of net inflows, while bond funds (SEK-0.8bn) and hedge funds (SEK-0.1bn) saw outflows. Fredrik Pettersson, chief analyst of Sifa, said the figures pointed to hesitancy among local investors following a couple of months of net inflows to equity funds. However, he added that despite the withdrawals in March, the year-to-date figures pointed to a net SEK10bn invested in equity funds locally so far.
In contrast to usual trends, despite a 2% gain in the Stockholm Stock Exchange, including dividends, through March, investors took money out of Sweden equity funds. Russia equity funds was another category to experience significant withdrawals. However, index funds experienced net inflows of some SEK7.7bn (€801m) over the month.
Net sales across all categories in the first three months of 2017 amounted to SEK18.2bn (€1.9bn), of which SEK10.2bn (€1bn) went into equity funds. Total industry assets increased SEK22bn (€2.29bn) in March to end at a new record high of SEk3.738trn (€389bn).