19/10/2011
By Matt Ritchie
The volume of assets placed in Swiss funds increased CHF 4bn to just under CHF 615bn in September, according to new statistics published by the Swiss Funds Association.
The data, compiled by Swiss Fund Data AG and Lipper showed that outflows totalled just under CHF 5bn last month, their highest monthly total since October 2008.
Swiss funds for institutional investors accounted for some CHF 221.2bn of the total figure, and now make up more than a third of the overall market having recently gained ground. Swiss funds for qualified investors accounted for CHF 163bn, while just under CHF 55bn was invested in institutional classes of foreign funds authorised for sale in Switzerland.
Meanwhile, the volume of assets rose by around CHF 3.6bn, which the SFA said was driven by the Swiss National Bank’s move to peg the Swiss franc to the euro bringing about an appreciation of all funds denominated in foreign currencies.
The SFA said the SNB’s intervention also meant that equity funds were spared more serious losses in CHF terms, despite asset withdrawals in the region of CHF 2bn. In comparison, the MSCI World TR Index lost 8.6 per cent in USD terms but gained 3 per cent in CHF.
Only a few fund categories 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 1.9bn, excluding net asset flows.
Dr. Matthäus Den Otter, CEO of the Swiss Funds Association, said: “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 apparently are seeking only the safest havens possible for their savings.”
In commentary accompanying the statistics, the SFA said institutional investors such as pension funds have to continually seek out investments and cannot simply hope for “better times”, displaying lower redemptions than retail funds.
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