Fund savers sought lower risk during turbulent 2018

[2019-01-17]

 

In 2018, a net total of SEK 54.4 billion was invested in investment funds.

After a long period of rising stock prices, the equity market development slowed down during the second half of 2018, and much of the year was characterized by active fund savers making transfers from equity funds to less risky investment alternatives.

The largest part of this year's new savings went to short term fixed income funds and balanced funds, with net deposits of SEK 26 and 25 billion, respectively. Also long term fixed income funds showed net inflows, while equity funds recorded net withdrawals over the full year 2018.

At the end of 2018, the total net assets in Sweden amounted to SEK
3 978 billion, which represents a value decrease of about SEK 40 billion during the year.

This is some of what is stated in the Swedish Investment Fund Association's annual report of fund savings in Sweden.


“2018 was a fund- and stock market year with two faces. During the first months, fund investors chose to a greater extent funds with high equity exposure. While the longer the year went by and the market turbulence increased, safer investments, such as short term fixed income funds and balanced funds was preferred", says Gustav Sjöholm, Financial Savings Economist at the Swedish Investment Fund Association


2018 in brief:

  • Nearly SEK 55 billion was invested in investment funds during 2018. Total net sales of investment funds amounted to SEK 54.4 billion in 2018. Net deposits were made primarily in short term fixed income funds and balanced funds.
     
  • Weak stock market development during the year resulted in a decrease of the total fund assets in Sweden by about SEK 40 billion in 2018, and at year-end total AuM amounted to SEK 3 978 billion.
     
  • Most equity markets showed negative return in 2018. On average, equity funds (calculated in SEK) decreased by 5.6 percent in value. Sweden funds recorded an average decrease in value of 5.4 percent and global funds decreased in value by an average of 3.1 percent. Among the fund categories with positive returns were various sector funds as well as US funds and Latin American funds, with Brazil funds at the forefront.
     
  • Equity funds recorded a total net outflow of SEK 6.8 billion in 2018. The largest withdrawals were made from Sweden funds with net outflows of SEK 27.7 billion, followed by European funds showing a net outflow of SEK 10.7 billion. Global funds, on the other hand, recorded large net deposits of SEK 39 billion during the year.
     
  • Savers interest in index funds remained very strong. Despite a total net outflow from equity funds of almost SEK 7 billion, index funds recorded net deposits of SEK 22.7 billion in 2018. At the end of the year, index funds accounted for nearly 17 percent of the total equity fund assets.
     
  • Balanced funds had continued net deposits throughout 2018, and recorded a total net inflow of SEK 24.6 billion.
     
  • Also short term fixed income funds had large net deposits. The total net inflow in 2018 amounted to SEK 25.7 billion.
     
  • Long term fixed income funds recorded a total net inflow of SEK 12.6 billion in 2018, despite net outflows from corporate bond funds of SEK 4.8 billion.

 

Please also see the full report: "Yearly report 2018" 

 

For further comments please contact:

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


For information regarding the statistics please contact:

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


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, Cicero Fonder, Danske Invest, Didner & Gerge Fonder, DNB, East Capital, Eligo Asset Management, Enter Fonder, FCG Fonder, Fidelity International, FIM Fonder, First State Investments, Franklin Templeton Investments, 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.