October bounce saw investors buy equity, says Swedish Investment Funds Association

Swedish investors reversed a trend by becoming net buyers of equity funds in October, figures published by industry association Fondbolagens förening show.

Equity funds saw a net SEK5.5bn (€606m) invested over the month, the Association says.

Net investment in mixed funds hit SEK1.4bn. However, there were net redemptions from both bond funds, SEK-5.4bn, and money market funds, SEK-2.6bn.

The figures illustrate a remarkable turnaround over the month compared to the trends noted in each of the previous five months, when equity funds recorded net redemptions, and net investments were focused on fixed income funds.

Since the start of 2011 the net redemptions from equity funds represented by the Association total SEK-60bn (€-6.6bn), compared to overall industry net redemption of SEK-4.2bn.

This means that investors have turned to other types of funds. So far in 2011 net investments in money market funds have hit SEK36bn (€3.3bn).

“Interest in equity funds returned in October, and the total value of funds increased considerably due to the increase in value of the world’s stock markets. Concerns over the financial crisis are not over, however, even if political decisions in Greece and italy hopefully can contribute to improved optimism,” said Fondbolagens förening’s chief executive Pia Nilsson.

The Stockhom stock market gained 9% over the month of October. Fund investors focused their attention on Sweden funds, where net investments hit SEK3bn.

The total value of funds represented by the Association hit SEK1.8trn (€198bn) at the end of October, of which SEK958bn (€106bn) was invested in equity funds. 

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