Stock market turbulence affected fund savings in October

[2018-11-12]

 

In October, investment funds recorded a total net outflow of SEK 9.1 billion. Equity funds recorded large net withdrawals, whereas short term fixed income funds had substantial net deposits.

The total fund assets in Sweden decreased during the month by SEK 214 billion and amounted at the end of October to SEK 4 190 billion.


Investment funds recorded a total net outflow of SEK 9.1 billion in October. Equity funds had net withdrawals of SEK 21.4 billion, whereas short term fixed income funds had net deposits of SEK 14.8 billion. Also balanced funds saw a net inflow of SEK 0.3 billion. Long term fixed income funds and hedge funds recorded net outflows of SEK 1.3 and 1.6 billion during the month.

So far in 2018, total net sales of investment funds amounts to SEK 29.9 billion, of which almost SEK 21 billion have been invested in short term fixed income funds.
 


“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 percent of the total assets in equity funds”, says Gustav Sjöholm, Financial Savings Economist at the Swedish Investment Fund Association.

In October, the development of most of the world’s stock markets was strongly negative and the value of the Stockholm Stock Exchange (including dividends) fell by over 7 percent during the month. Equity funds recorded, in October, a total net outflow of SEK 21.4 billion and the largest withdrawals were made from Sweden funds, sector funds and North American funds.
 


So far in 2018, equity funds have recorded a total net outflow of SEK 15.2 billion. Sweden funds have had net withdrawals of almost SEK 22 billion, whereas global funds have recorded net inflows of over SEK 21 billion. It is also notable that index funds have recorded net inflows of SEK 23.5 billion so far this year.

Long term fixed income funds recorded in October a total net outflow of SEK 1.3 billion. However, net deposits of SEK 0.6 billion were made in corporate bond funds. So far in 2018, total net sales of long term fixed income funds amounts to SEK 8.7 billion, of which SEK 1.8 billion constitutes net deposits in corporate bond funds.
 


The total fund assets in Sweden decreased by SEK 214 billion during October and amounted at the end of the month to SEK 4 190 billion. Of the total fund assets, SEK 2 435 billion (equivalent to 58 percent) was invested in equity funds.
 


For further comments please contact:

Gustav Sjöholm, the Swedish Investment Fund Association
+46 (0)76-540 05 07
gustav.sjoholm@fondbolagen.se


For information about the statistics:

Fredrik Pettersson, Chief Analyst, the Swedish Investment Fund Association
+46 (0)8 506 988 03 / +46 (0)733-12 55 77, fredrik.pettersson@fondbolagen.se

Fredrik Hård, the Swedish Investment Fund Association
+46 (0)8-506 988 08, fredrik.hard@fondbolagen.se


Net sales of investment funds in 2018, SEK billion

 

Members of the Swedish Investment Fund Association:

Aktie-Ansvar, Alfred Berg Fonder, AMF Fonder, Avanza Fonder, Aviva Investors, BMO Global Asset Management, Carnegie Fonder, Catella Fonder, Danske Invest, Didner & Gerge Fonder, DNB, East Capital, Enter Fonder, FCG Fonder, Fidelity International, FIM Fonder, First State Investments, Franklin Templeton Investments, Granit Fonder, Handelsbanken Fonder, Healthinvest Partners, Holberg Fonder, HSBC Global Asset Management, ISEC Services, J.P. Morgan Asset Management, Lannebo Fonder, Länsförsäkringar Fondförvaltning, Monyx, Movestic Kapitalförvaltning, Naventi Fonder, Navigera, Norama, Nordea Fonder, Odin Fonder, SEB Investment Management, Simplicity, Skagen Fonder, Skandia Fonder, Spiltan Fonder, SPP Fonder, Strand Kapitalförvaltning, Swedbank Robur Fonder, Söderberg & Partners Asset Management, Tundra Fonder, Xact Kapitalförvaltning, Ålandsbanken Fondbolag, Öhman Fonder.

Associate members

Advokatfirman Evander, Apriori Advokatbyrå, Bloomberg LP, Citi, Deloitte, EY, Gernandt & Danielsson Advokatbyrå, Harvest Advokatbyrå, KPMG, MFEX, Morningstar, PwC, SEB Fund Services, Wesslau Söderqvist Advokatbyrå.