Swedish investors avoid risk in March

Geopolitical and disaster risk weighed on Swedish investors’ minds in March, the country’s Investment Fund Association says.

Net savings of Sek3.6bn (€353m) were made in funds in Sweden in March, the Swedish Investment Fund Association says. However, the average figure disguises considerable shifts in risk appetite.

Net investment of Sek7.6bn (€745m) were made in money market funds, while hedge funds saw net inflows of Sek1.2bn (€118m). However, equity funds saw redemptions of Sek5.4bn (€530m), while for other types of funds the net changes were negligible, the Association says.

In total through the first quarter of 2011 a net Sek7.7bn (€755m) has been saved in funds, the Association says, with assets under management reaching Sek1.946trn (€191bn).

“The rate of new savings in funds was affected in March by geopolitical concerns in North Africa and the tragedy in Japan. In times of uncertainty active investors often avoid alternatives of higher risk and instead choose funds with low risk, including money market funds,” said Pia Nilsson, managing director of the Association.



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