Swiss investors finally return to equities, SFA reports

Swiss investors have finally plucked up the courage to put money into equity funds, after months of shying away from the asset class.

In October, Swiss equity funds saw inflows of CHF2.2bn, compared to net inflows of CHF145m in September, according to data form the Swiss Funds Association (SFA).

The SFA attributes this increased confidence to the continued uptrend on the key equity markets.

With share prices doubling, the current rally has managed to produce a greater profit in a shorter space of time than the upswing from 2002 to 2007.

Two of the most prominent global equity indices, Dow Jones and S&P 500, as well as the Swiss Market Index (SMI), have posted growth figures ranging from 7% to 12% year to date.

But it was only in October that equity funds have finally made marked gains across Europe, sparking investor confidence.

Matthäus Den Otter, CEO of the SFA, said: “We are pleased to see that investors have again plucked up the courage to invest in higher-risk equity funds, and we hope this will be rewarded with corresponding returns.”

Bond funds, however, still continue to attract more Swiss money. In October they saw inflows of CHF3.4bn, also beating the CHF2.5bn inflows of the previous month.

Other asset classes have not been as successful. Commodities have seen meagre inflows of CHF200m in comparison, while money market funds continued to lose investor money. In October, Swiss investors have taken out CHF1.6bn from this investment vehicle.

The total volume of assets in the investment funds covered by the SFA statistics have increased slightly month on month, up from CHF 706.6bn to CHF 707.8bn. Institutional investors account for CHF 281.8bn of this money.

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