Fund savings: Investors shift from the US to Europe

Fund news

Fund savings continued to increase in April, and the largest part of the net savings was invested in equity funds. Characteristic for the development during the month was that investors net sold US funds in favour of European funds.

Investment funds recorded a total net inflow of more than SEK 12 billion in April, according to statistics from the Swedish Investment Fund Association. Equity funds recorded the largest inflow with net deposits of around SEK 6 billion. Bond funds and balanced funds also recorded positive net deposits whereas the net outflow from money market funds (short interest funds) continued during the month.

As a result of the positive development on the majority of the equity markets during the month (the Stockholm Stock exchange rose by over 4 percent, including dividends), the total fund assets in Sweden increased by SEK 79 billion and amounted to SEK 3 826 billion.

Shift towards Europe
"Characteristic for fund savings in April was that active investors chose to shift from US funds to European funds", says Fredrik Pettersson, Chief Analyst of the Swedish Investment Fund Association, who thinks that changed expectations may be at least part of the explanation behind the shift.

"The American market has experienced a very strong development for some time, but now the European economy seems stronger", Fredrik Pettersson continues, while pointing out that the majority of the fund investors are not very active. 

Index funds recorded a continued substantial inflow in April, and so far in 2017 the net deposits made in index funds are significantly larger than the corresponding net deposits made in ordinary (actively managed) equity funds. 

Net sales of funds, SEK billion

Fund assets, SEK billion