Equity funds lead Swedish savings in January

Figures from The Swedish Investment Fund Association show that equity funds took the lion’s share of net new money invested in January.

Sweden and East Europe equity funds were the most popular, drawing in a combined net Sek6.9bn the month. The overall net invested in all equity funds hit Sek6.4bn as investors steered shy of emerging market funds such as China and India. There were also net withdrawals from money market and bond funds, the figures show.
                       Net savings Jan 2011      Value of funds 31 Jan 2011
Equity              6.4                                1165
Mixed               0.7                                 353
Bond                -1.6                                182
Money Market   -2.6                                192
Hedge              -0.3                                38
Other                0                                   4
Total net           2.7                                1935

“The interest in equity funds was surprisingly strong in January given the direction of the stock market,” said Pia Nilsson, managing director of the Association, noting that including dividend returns the Stockholm Stock Exchange dropped 1.2% in January.

“Sweden and East Europe funds also saw a lot of new investment. Asia funds on the other hand saw withdrawals. Also worth noting is the withdrawals from Sweden & Global funds, where a lot of the older allemansfonderna are. Withdrawals from this type of fund were big through 2010. Here is where a lot of older funds investors are, who presumably are making withdrawals to place in other funds or to use the money, which is the objective as people reach this stage in life.

Allemansfonder are a type of equity fund introduced to the Swedish market in April 1984 to encourage retail investors. They were specifically regulated, including returns being taxed at a lower rate than for other types of capital gain. Since July 1998 they have been regulated in the same was as other funds.

The Association’s figures cover all investments reported by its members, as well as figures for funds in Sweden’s Premium Pension system through which a proportion of retirement savings are allocated by savers themselves.

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