Data from Investment Research Finland suggests that net sales of Finnish domiciled mutual funds hit €8.6bn in 2014, up 83% on the previous year.
Assets under management of locally domiciled funds increased €5.2bn as markets performed positively, taking the year end assets to €85.1bn – an all time high.
The industry saw mergers between Nordic funds, which reduced the total assets under management domiciled in Finland. However the mergers went both ways: Finnish funds merged into Swedish funds, and vice versa. Figures published by the Bank of Finland suggested some 16% of assets managed by Finnish mutual funds were owned by Swedes as of the end of November.
In terms of sectors, long term bond funds managed to attract most net new capital, some €4.6bn through the year. As interest rates continued to decline through 2014, such assets became more valuable.
Net subscriptions to asset allocation funds hit €2.6bn, and to equity funds some €1.1bn, IRF said. The value of equity funds increased by €2.9bn as a result of market appreciation, the research organisation added.
Further data shows that equity funds investing in Finnish stocks offered 12 month returns of betweeen -3% to +11%, with volatility relatively constant between 13%-16%.
Taaleri Micro Markka Equity Growth was the best performing such local equity fund, with return of 10.6% over the year.
Seligson & Co Phoebus (10.2%) and Seligson & Co OMX Helsinki 25 Exchange Traded Fund (9.7%) rounded out the podium of best performers. Six funds in the sector offered negative returns over the period.
By market share, Nordea Funds held 37.3% of the market for managers domiciled in Finland. OP Fund Management Company held 20.5%, and Danske Invest Fund Management 12.9%.
Sometimes referred to as the ‘biggest manager you have never heard of’, Jonathan Boyd has caught up with PGIM for insight into its Europe region developments as part of global expansion