Swedish Investment Fund Association figures show domestic funds saw net outflows totalling 10.8 billion krona (€1.1 billion) in January, as continued market turmoil saw the Stockholm stock market fall by 7%, causing domestic investors to make redemptions.
Overall, total fund assets in Sweden fell by 160 billion krona through the month to 3 trillion krona. The bulk of the outflows came from equity and bond funds, with investors withdrawing 15.5 billion krona and 2.3 billion krona respectively.
Funds focused on Swedish equities were particularly impacted, with net outflows of 5.8 billion krona. North American equity funds also saw significant net outflows of 2.7 billion krona. Conversely, money market and hedge funds recorded meagre net deposits.
Fredrik Pettersson, chief analyst at the Swedish Investment Fund Association, said: “The turmoil in global equity markets affected net sales of investment funds in January. Although, it may be worth noting that most fund savers are long-term investors and that net withdrawals represent under 1% of the total assets held in equity funds.”
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