Wed, Oct 7, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Assets invested in Swiss funds rise to CHF615bn in September

Wednesday, October 19, 2011
Opalesque Industry Update - As of the end of September 2011, the total volume of assets in the investment funds covered by the statistics compiled by Swiss Fund Data AG and Lipper stood at CHF 614.7 billion, with Swiss funds for institutional investors accounting for some CHF 221.2 billion of this figure. The latter fund category has gained ground of late, and now makes up more than a third of the overall market. Swiss funds for qualified investors accounted for CHF 163 billion, while just under CHF 55 billion was invested in institutional classes of foreign funds authorized for sale in Switzerland. Institutional investors such as pension funds have to continually seek out investments and cannot simply hope for “better times”, and display lower redemptions than retail funds, if at all.

Unit redemptions rose month-on-month in September, driven by fears of a slowdown in the global economy as well as a deterioration in the EUR crisis. At CHF 4.7 billion, outflows hit their highest monthly total since October 2008. Nevertheless, measured in CHF the volume of assets rose by around CHF 3.6 billion, as the Swiss National Bank’s (SNB) intervention to effectively peg the CHF to the EUR led to an appreciation of all funds denominated in foreign currencies, in particular money market and bond funds. After all, of the total volume on the Swiss fund market, only 48% are denominated in CHF with the other 52% being in foreign currencies, the EUR alone accounting for 26% and the USD 22%.

The SNB’s intervention also meant that equity funds were spared more serious losses in CHF terms, this despite asset withdrawals in the region of CHF 2 billion. By way of comparison, the MSCI World TR Index lost 8.6% in USD terms in September but gained 3.0% in CHF.

Only a few fund categories – such as commodities and precious metals funds, Money Market CHF, and Bond Global Corporates – were able to attract modest amounts of new money. As a result of the slump in precious metals prices, the assets of other funds fell by around CHF 1.9 billion, excluding net asset flows. “This trend confirms the extent of the nervousness among retail investors. With the uncertainty on the markets having exacerbated further, their sense of helplessness increases – and they are apparently are seeking only the safest havens possible for their savings,” said Dr. Matthäus Den Otter, CEO of the Swiss Funds Association SFA. Corporate website: Source

- FG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  2. Investing - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  3. DoubleLine’s Jeffrey Gundlach warns of another round of market shakedown[more]

    Komfie Manalo, Opalesque Asia: DoubleLine Capital co-founder Jeffrey Gundlach is painting a bleak future as he warned that the U.S. equity market and other risk markets, such as high-yield "junk" bonds, are facing another round of selling pressure. Gundlach said in an interview with

  4. A hedge fund strategy that seems to have fizzled[more]

    From The hedge fund strategy that has attracted the most money this year is on course to cause some of the biggest losses for investors, in the latest example of the dangers of going with the crowd. Institutions and individuals have piled an estimated $20 billion (Dh73 billion) into ma

  5. Hedge fund Barnegat survives September’s market selloff[more]

    Komfie Manalo, Opalesque Asia: Bob Treue’s $679 million Barnegat Fund proved resilient after another month of market letdown as the hedge fund gained 2.2% last month, bringing its year-to-date gains to 2.8%. Treue said in his monthly report to i