The Swiss fund industry had assets under management of CHF1.11trn (€965.2bn) as of 31 May 2018, according to figures compiled by Swiss Fund Data AG and Morningstar.
Assets have dropped by 1.7% month-on-month from CHF1.13trn (€982.6bn) in April 2018 (- CHF19.5bn).
“The stock markets in Switzerland and Europe suffered losses in the month under review, in some cases significant ones. The home bias effect, whereby investors tend to favor stocks from their own country, thus led to a fall in volumes on the Swiss fund market.
“This trend was further exacerbated by the negative impact of exchange rates due to the strong Swiss franc and by the first net outflows recorded in several months. Investors withdrew money from bond funds in particular because they feared a potential rise in interest rates,” commented Markus Fuchs, managing director of the Swiss funds & asset management association Sfama.
Some CHF6.6bn (€5.74bn) net outflows were observed in Swiss funds over the month of May 2018 with bond funds having suffered CHF4.3bn (€3.74bn) of outflows. At the same time, equity funds and money market funds recorded outflows of CHF1.9bn (€1.65bn) and CHF1.2bn (€1.04bn) respectively.
However Sfama noted a positive month for alternative investments and commodity funds which boarded CHF450.8m (€392m) and CHF285.1m (€247.89m) of net inflows in May 2018.
As of 31 May 2018, 42.35% of the Swiss fund industry assets were managed in equity funds, 30.45% in bond funds, 11.78% in asset allocation funds, 8.25% in money market funds while the remaining 7.2% were spread across real estate, commodity and alternative funds.