Swedish H1 flows SEK51bn despite June redemptions

Investment funds in Sweden saw net withdrawals of SEK11.9bn (€1.3bn) through June, but this was not enough to knock the industry’s first half performance, recording net investments of SEK51bn (€5.4bn).

Fund assets decreased through June by some SEK160bn, to a total of SEK3.268trn (€348bn).

Biggest net outflows were seen in equity (SEK-21bn) and bond (SEK-2.8bn) funds.

“Money market funds, on the other hand, recorded net deposits of SEK 6.2 billion during the month. Also balanced funds and hedge funds had net inflows of SEK 3.5 and 2.3 billion in June,” the Swedish Investment Fund Association said.

Fredrik Hård, economist at the Association added: “June was characterized by great turmoil on the world’s stock markets, which certainly explains some of the withdrawals from equity funds during the month. A desire to reduce risk in their savings, after a long period of rising share prices, can be assumed to reflect the huge interest for balanced funds during the first half of 2015.”

Swedish equity investment flows tend to be linked to the performance of the local stock market. During June, the market lost 6% of its value, including dividends, and the biggest equity withdrawals on a net basis were from Sweden funds.

“It is also notable that index funds have recorded net inflows of SEK8.9bn so far this year,” the Association added.

Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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