Swedish Savers Pull Cash Out of Equities at Year’s Fastest Pace
Swedish investors in September withdrew more money from equity funds than in any other month of the year, according to data from the country’s Investment Fund Association.
Equities suffered 17.5 billion kronor ($2 billion) of net redemptions last month, dwarfing August’s outflow tally of 6.5 billion kronor. The withdrawals coincided with negative trends across the world’s equity markets with Stockholm’s stock exchange down just over 6% in the month, the association said.
“The uncertainty among Swedish savers is clear, but it’s important to remember that equity market declines belong in a normal stock market cycle,” said Johanna Englundh, a savings economist at the association.
Fixed income meanwhile attracted net inflows across the board in September, with short-term funds up by 12.6 billion kronor and corporate bond funds swinging back to positive 1.2 billion kronor after modest redemptions the month prior.
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