Fri, Aug 29, 2014
A A A
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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  3. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  4. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  5. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest