US, Japan funds most in demand through May in Sweden, says Skandia

Investors buying funds through Swedish mutual Skandia in May were particularly interested in US and Japan funds – two of the best performing sectors so far in 2013, the company said.

Investors continued to switch out of bond funds into equity funds, Skandia said, as nine out of ten funds in the range offered by Skandia showed positive returns through the month.

Jim Rotsman, head of Nordic Investment Management at Skandia, said: “it is not often we seen a lot of interest in Japan funds, but in recent months investors have started to take note. The country’s stock market really seems to have woken up and despite the strengthening krona against the yen reducing returns for Swedish investors, Japan funds are among the winners this year. But, in recent days we have seen high levels of volatility on the Japanese stock market, with significant falls. If this continues, then I believe the interest in Japan funds will blow over quickly.

Japan is not the only country to offer gains this year. The US stock market has risen and beaten records – something that attracts investors.

“Despite the US stock market being the world’s biggest, interest in US funds is fairly tame among investors. At Skandia just 3% of investors’ capital is placed in US funds. But, now that we have seen emerging markets falling behind, and US funds gaining, then levels of interest have gained. We have also seen a certain strengthening in the dollar this year, something that benefits US funds,” Rotsman added.

Skandia’s data points to Sweden and emerging markets equity funds being amongst the most sold among its customers.

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