Finansmarknad  Värdepappersfonder, tillgångar och skulder Värdepappersfonderna 2:a kvartalet 2006
In EnglishSummary
List of tables
Households avoided equity funds
During the second quarter of 2006, the Swedish stock exchange fell by 8.5 per cent, which prompted households to sell shares in equity funds. Because households sold for more than they bought, households’ net savings in equity funds amounted to minus SEK 15 billion. Households have had negative net savings in equity funds in the four preceding quarters but this quarter's net savings were considerably lower. Households' net savings in equity funds of minus SEK 15 billion during the second quarter of 2006 can, for example, be compared to the corresponding figure of minus SEK 3 billion for the whole of 2005.
Fund wealth decreases
Households' directly-owned fund wealth amounted to SEK 390 billion at the end of the second quarter, which represents a decrease of SEK 42 billion since the end of the first quarter. Households also own funds indirectly, where ownership via unit linked funds amounted to SEK 312 billion and ownership via pension premiums amounted to SEK 196 billion.
The total fund wealth for all sectors, including financial corporations, foreign owners, the social insurance sector and households, amounted at the end of the second quarter to SEK 1,216 billion. This is a decrease from the previous quarter when the corresponding figure was SEK 1,295 billion. These figures include a double accounting that occurs when funds invest in other reporting funds. If this is adjusted for, by subtracting investments in Swedish funds (found in table 7), the corresponding figures is SEK 1,183 billion and SEK 1,264 billion for this and the first quarter respectively.
Substantial savings in money market funds
Households' net savings were minus SEK 12 billion during the quarter, as withdrawals were greater than deposits. The total reduction in households' directly-owned wealth was SEK 42 billion where the negative net savings accounted for SEK 12 billion and the remaining reduction related to a value change in funds of SEK 30 billion.
Households' net savings in both equity funds and mixed funds were negative during the quarter. Households chose instead to invest in funds of funds, money market funds and other funds.
When looking at all sectors, net savings in equity funds were minus SEK 28 billion during the quarter while net savings in money market funds were positive with SEK 20 billion. This is considerably higher than during the previous quarter.
Falling stock markets both in Sweden and abroad
At the end of the second quarter of 2006, equity funds accounted for 56 per cent of the total fund wealth, or SEK 677 billion in monetary terms.
The total wealth placed in equity funds fell during the quarter by SEK 92 billion. Of this decrease, the negative net savings accounted for SEK 28 billion. The remaining reduction of SEK 64 billion in equity funds, not due to changes in savings, was due to exchange rate developments.
During the quarter, the Stockholm stock exchange fell by 8.5 per cent. This is a break in the trend as the stock exchange has previously shown an increase at the end of the quarter for twelve quarters in a row. However, the Stockholm stock exchange rose somewhat compared to the beginning of the year.
The US stock exchange also fell during the quarter, the technology-heavy NASDAQ Composit fell by slightly over 7 per cent and the S&P 500 fell by slightly less than 2 per cent. The effect of the decline of the US stock exchange was further reinforced because the SEK strengthened against the dollar by 6.3 per cent, the stronger SEK meaning that investments in dollars reduced in value. With regards to the European market, the German share index DAX fell by slightly less than 5 per cent during the quarter.
1. Number of funds
2. Market value of funds, SEK million
3. Net savings incl. reinvested dividends specified by sector, SEK million
4. Market value of funds specified by sector, SEK million
5. Gross savings in funds, SEK million
6. Household gross saving in funds, SEK million
7. Fund investments at market value, total, SEK million
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