Net outflows hit Swedish fund market in September

Net outflows of some SEK3bn (€288m) hit the Swedish fund industry in September, as investor sentiment weakened, suggests the Swedish Investment Fund Association (Fondbolagens förening).

Net withdrawals were largest for equity funds (SEK-2.7bn, while fixed income (SEK-0.8bn) and hedge funds (SEK-0.4bn) also experienced outflows.

Short term fixed income (SEK0.4bn) and balanced funds (SEK0.3bn) saw marginal net inflows, the Association said.

The first nine months of 2018 saw total net sales of investment funds hit SEK39bn (€3.75bn), of which SEK14.9bn went to balanced funds and SEK10.1bn went to long term fixed income funds. Equity and short term fixed income funds respectively had attracted SEK6.2bn and SEK6bn over the period.

Gustav Sjöholm, financial savings cconomist at the Association, said: “After a positive stock market trend during the summer, the equity market turned down during the beginning of September, which also reflected the fund savings. Fund investors primarily sold sector funds and funds investing in Asian markets, while they increased their savings in Sweden funds.”

For 2018 so far, on an equity sector basis Sweden funds have seen net withdrawals of some SEK16bn, while global funds have attracted net inflows of around SEK21bn. Index funds have seen net inflows of some SEK25bn (€2.4bn).

The market downturn coupled with lower net inflows through September saw industry total assets fall slightly to SEK4,405bn (€424bn). Of this, some 59% was invested in equity funds.

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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