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Fund wealth increases in Sweden thanks to market development

Staff Writer |
At the end of September, total fund wealth was SEK 3,204 billion, which is an increase of SEK 190 billion compared with the previous quarter.

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Households' directly owned fund wealth in Swedish registered investment funds contributed SEK 31 billion to the increase.

The market development and net savings contributed positively to the increase of SEK 190 billion. The market development contributed SEK 168 billion and total net savings accounted for SEK 22 billion.

The main contribution to net savings of SEK 22 billion was from equity funds and funds of funds. Net inflow in the third quarter was primarily from Swedish financial corporations, which had net savings of SEK 23 billion.

Part of this net savings is comprised of indirect fund holdings of households in the premium pension system and unit-linked funds, which amounted to SEK 9 billion and SEK 2 billion respectively.

Foreign owners were the only ones that sold for more than they bought for in the third quarter of 2016.

Households' directly owned fund wealth in Swedish-registered funds increased by SEK 31 billion during the quarter and amounted to SEK 619 billion at the end of September.

Net savings during the quarter were positive and amounted to SEK 2 billion, following negative net savings in the last two quarters. The remaining SEK 29 billion of households' increased fund wealth was a result of the positive market development.

The fund categories mixed funds, funds of funds and equity funds had the highest net savings among households. Households, on the other hand, sold for more than they bought for in bond and money market funds and other funds in the third quarter and net sales amounted to SEK 1 billion in total.

The wealth of equity funds increased the most during the quarter. It increased by SEK 145 billion during the quarter and amounted to SEK 1 627 billion in total. SEK 18 billion of the increase was due to a positive net inflow and savings.

Fund wealth in funds of funds and mixed funds also increased by fully SEK 27 billion and SEK 24 billion respectively. Bond and money market funds´wealth, on the other hand, decreased from SEK 450 billion to SEK 441 billion due to a decrease in money market funds.

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