Net fund investments rise in Sweden, Denmark through April

Swedish investors went strongly into equity funds in April, while the traditional year-end meetings by Danish investment associations saw assets under management rise even as dividends were paid out, published figures show.

Net investments in funds hit Sek7bn (€780m) in the past month, reports the Swedish Investment Fund Association. Equity funds actually attracted a net Sek9bn (€1bn), but the overall figure was held back by an outflow of Sek-5.7bn (€-636m) from money market funds.

April was the first month since January to record a positive net inflow, the Association said.

“Optimism returned in April as investments in equity funds increased. During the first quarter this year investments were hit by unrest in North Africa and natural disaster in Japan, but now it seems that funds investors have decided that the positive signals on growth weigh more heavily. Sweden funds and emerging markets funds are popular, which indicates the level of belief in the future of these markets,” said Association managing director Pia Nilsson.

Sweden funds drew the biggest proportion of new money into equity funds, Sek3bn (€335m), with investors benefiting from a 4% gain in the Stockholm Stock Exchange over the month.

Equities also did well for Danish investors, reported the Federation of Danish Investment Associations. However, it added that April was the best month yet in 2011 for fixed income investments, with corporate bond fund units typically returning 1.1% over the month.

April is traditionally the key month for Danish investment associations – the way that collective investments are made in that country – as it is when most of them hold their general meetings and pay dividends to investors. Dividends of about Dkk14.5bn (€1.95) were paid compared to Dkk3.7bn (€496m) in March.

Despite the payments, the value of assets overall represented by the associations rose marginally by Dkk5m to Dkk1.007trn (€135.1bn), the Federation reports. The bulk of this advance was down to new deposits during the month of about Dkk14bn (€1.87bn).

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