Swedish fund sales drop in September

Latest figures from the Swedish Investment Fund Association (Fondbolagens förening) show a large net outflow from its members’ funds last month.

The total redemptions hit SEK-7.3bn (€-0.8bn) over the month, as investors withdrew money from equity and invested more in money market funds.

Investors also bought more bond and mixed asset funds over the month, but it was not enough to cancel out the effects of the uncertainty experienced on stock markets around the world over the month, and the resulting net redemption of SEK-14.6bn from equity funds.

The Association notes that the value of the Stockholm Stock Exchange fell by 6% over the month. The only equity fund sectors to witness any net inflows were China and Japan funds. The biggest equity sector, Sweden fund, saw a net SEK-6.4bn withdrawn.

Through 2011 so far a net SEk3.2bn has been pulled out of all types of funds represented by the Association. The total value of investment funds represented by the Associations statistics stands at SEK1.719trn (€189bn).

“Annualised the net withdrawal from funds is SEK3bn,” said Pia Nilsson, chief excutive of the Association.

“However, that should be viewed in proportion to the decrease in [AUM] value of SEK242bn. Of the decrease in total fund wealth the net redemptions account for 1% and the fall in value for 99%.”

 

Net savings in funds SEKbn Sep Jan-Sep 2011
Equity -14.6 -65.7
Mixed 0.6 11
Bonds 0.8 10.7
Money market 5.7 38.1
Hedge -0.2 2.3
Other 0.4 0.4
Total -7.3 -3.2

 

 

 

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