Swedes turn cautious in June – inflow data

Data published by the Swedish Investment Fund Association suggest that local investors took risk off the table in June, as fixed income funds experienced net inflows but equity and balanced funds experienced withdrawals.

Total industry assets did increases through the month, buy some SEK5bn to a new record high of SEK4.238trn (€408.3bn) as net inflows hit SEK1.8bn (€173m), however, this came in context of some SEK3.8bn of net outflows from equity funds, particularly from the Sweden equity sector, where net outflows hit SEK2.55bn (€245m).

Short term fixed income funds saw net inflows of SEK2.7bn, long term fixed income funds saw SEK1.5bn come in on a net basis, while hedge funds attracted some SEK1.7bn.

The Association noted that besides Sweden, investors also sold out of Europe and EM equity funds, switching towards fixed income, according to its financial savings economist Gustav Sjöholm.

While the local stock market saw its value increase marginally through the month, dividends included, the outflows form Sweden equity funds took the total outflows from the category for the first six months of 2018 to SEK16.4bn (€1.58bn).

That compares to net inflows for index funds of some SEK15bn so far this year, the Association added.

Equity funds still account for over half industry assets, with some SEK2.52trn out of the total SEK4.238trn held in investment funds in the country.

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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