March brings caution to Swedish fund investors

Data published by the Swedish Investment Fund Association points to a cautious approach taken by local investors through March, when the industry recorded total net inflows of just SEK0.6bn (€58m), amid net withdrawals from equity funds of SEK-4.4bn (€-427m).

The net taken out of equity funds overshadowed the net inflows to money market funds (SEK1.5bn) and bond funds (SEK1.4bn). Meanwhile, total fund assets decreased by some SEK-60bn to some SEK4,038bn (€392bn) by month’s end.

The first quarter of 2018 saw total net sales of investment funds of SEK8.2bn (€796m), the Association reports. Of this about half, SEK4bn, has been invested in balanced funds.

(Source: Sifa)

The pattern of net withdrawals from equity funds continued the trend seen in February. Given the historical correlation between savings trends and the performance of the Stockholm Stock Exchange, it is less surprising that net investments overall were poor through March. The Stockholm Exchange fell by about 1% through the month, including dividends, and the largest withdrawals were made from Sweden equity funds, the Association’s data suggests (SEK-4.38bn, or €-425m).

That said, equity funds remain the biggest single category of total assets invested, amounting to some SEK2,372bn out of the SEK4,038bn recorded at the end of March.

ABOUT THE AUTHOR
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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