Data published by the Swedish Investment Fund Association points to a net industry outflow of SEK9.1bn (€889m) through October, driven by large net withdrawals from equity funds of some SEK21.4bn (€2.1bn).
Despite net inflows to short term fixed income funds of some SEK14.8bn, and net inflows to balanced funds of SEK0.3bn, there were also net outflows from long term fixed income funds of SEK1.3bn, and outflows from hedge funds of SEK1.6bn.
Total fund assets decreased over the month by some SEK214bn (€20.1bn) – also reflecting the heavy weighting towards Swedish equity among holdings at as the Stockholm Stock Exchange fell by more than 7% including dividends.
Gustav Sjöholm, financial savings economist at the Association, said: “Market turbulence and macroeconomic concern characterized the world’s equity markets in October. Active investors chose to rebalance their portfolios by selling equity funds and buying short term fixed income funds. The total net outflow from equity funds during the month, however, corresponds to less than 1% of the total assets in equity funds.”
Sweden equity funds saw net outflows of more than SEK6.1bn in October, taking the January-October total net withdrawal to more than SEK21.9bn. Net assets of equity funds in the Swedish market as of the end of October, across all categories, was around SEK2.43trn (€237bn)
Long term fixed income funds have seen net sales of some SEK8.7bn (€850m) so far this year, the Association notes.