Swedish equity advance helps boost funds’ net sales
Net investments into funds in Sweden hit SEK8.8bn (€943m) through May, with equity funds accounting for the clear majority – SEK7.7bn – of the overall figure, reports the Swedish Investment Fund Association.
Some SEK5bn of the total invested was sourced from the annual rebates and other elements of the Swedish Premium Pension system. In PPM, investors are able to self-select funds, while the size of the fund platform, operated by the Swedish Pensions Agency means that users are able to access significant rebates in regards to the funds selected.
The Association said that the total value of funds by the end of May increased some SEK90bn to SEK3.252trn. Year-to-date to the end of May total net savings hit SEK11.1bn, the Association added.
January was a month when equity markets went down, but changes since have encouraged Swedish investors. In may the value of the stock market in Stockholm, including dividends, rose by some 2.5%. Unsurprisingly, Sweden equity funds saw the biggest net flows. Index funds saw net flows of SEK4.4bn through the month; however other single markets or regions, such as Africa, BRIC, Latin America and North America, India and Japan equity funds saw net outflows.