Swedish fund investors turn to emerging markets
Swedish fund investors turn to emerging markets, such as Russia, Brazil and Latin America, as risk appetite swells.
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Net inflow in funds rose in Sweden for the tenth uninterrupted month in October as risk appetite swelled and investors turned to equity funds focusing foreign stocks and growth markets, new statistics from the Nordic regions largest online stockbroker Nordnet showed.
Since the turn of the year low-risk high yield bond funds have increased 70 – 80 percent. Now, as more and more signs indicate that the global recession is fading, investors are realizing profit and turn back to more risky bets.
“The explosive return from high yield bond funds is not expected to continue”, Johan Tidestad, head of Nordnet in Sweden, told The Swedish Wire.
Instead investors bought funds focusing growth markets, such as Russia, Brazil and Latin America. Funds such as Skagen Kontiki, HSBC Brazil Equity, JPM Latin America Equity and SEB's Russia fund dominated the list of most popular funds last month.
“Risk appetite has clearly increased. Investors have turned to emerging markets as they expect the world’s economy to grow stronger. They go for higher risk and higher returns”, Johan Tidestad.
Still, there’s an uncertainty among investors about the state of the world’s economic situation and development. The most popular Swedish fund last month was a hedge fund, Catella Hedge, a category usually used as a safe bet in turbulent times.
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Last Updated (Thursday, 29 October 2009 12:36)
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