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).

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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