Thu, Apr 24, 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   |   
Banner
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. Opalesque Exclusive: Rainwater and Blue Sky - an Australian water fund emerges[more]

    Bailey McCann, Opalesque New York: Financial reporters often tout new funds and investments as uncorrelated investments, but few can say they are uncorrelated to everything but weather. Enter Blue Sky Alternative's water fund which invests in the permanent rights to Australia's water. Sev

  2. Regulatory – Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades, Alternative funds to get SEC test for leverage, liquidity[more]

    Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades From Thelawyer.com: A recent Wall Street Journal article — ‘Activist investors often leak their plans to a favoured few’ — focused attention on ‘activist’ investors and stock analy

  3. …And Finally – This week's least competent criminal is Austrian[more]

    From ABCnews.go.com: A German sought by authorities for alleged fraud has been arrested in Austria — after dropping into a police station to ask officers whether he was under investigation. Police in Salzburg said the 59-year-old man walked into a police station in the city on Friday night. Sp

  4. Investing – Hedge funds find pitfalls along with profits in real estate ventures, Marcato Capital Management makes new bet on Dillard’s[more]

    Hedge funds find pitfalls along with profits in real estate ventures From Law360.com: Hedge funds have joined the rush to real estate deals and development in recent months to close the financing gap left by tightening bank standards, but attorneys say many aren't prepared for the disclo

  5. Agecroft Partners estimates 90% of hedge funds using social media[more]

    The use of social media has increased significantly within the hedge fund industry over the past couple of years. Social media is broadly used by investors as part of their due diligence process on hedge funds, by service providers in their sales efforts to hedge funds, and by hedge funds to enhance