Total fund wealth of Sweden amounted to US$ 632,604,574,260 (SEK 5 207 billion) at the end of 2020, which is an increase of US$ 37,913,959,200 (SEK 312 billion) compared with the previous quarter. Large net investments and continued positive stock market development contributed to the increase.
Pursuant to Statistics Sweden, total net investments amounted to US$9,113,932,500 (SEK 75 billion). Households’ net investments amounted to US$729,114,600 (SEK 6 billion). Swedish financial enterprises was the sector in which fund wealth increased the most, by US$30,362,060,000 (SEK 250 billion), of which premium pensions accounted for US$13,359,313,000 (SEK 110 billion). Foreign owners’ holdings in Swedish-registered funds increased by US$ 1,578,827,900 (SEK 13 billion) and amounted to US$ 22,832,280,400 (SEK 188 billion).
The largest increase in the fourth quarter, US$ 28,169,423,760 (SEK 232 billion), was recorded in the fund category equity funds, and was the result of strong development in the stock market and net investments amounting to US$5,828,160,000 (SEK 48 billion).
Bond and money market funds was the category with the smallest increase, and the increase of US$729,114,600 (SEK 6 billion) was largely due to net investments.
Fund-of-funds accounted for the second largest increase, US$3,884,400,000 (SEK 32 billion), followed by US$2,791,912,500 (SEK 23 billion) in other funds.
Households’ directly-owned fund wealth amounted to US$116,046,450,000 (SEK 956 billion) in the fourth quarter, which is US$6,064,649,000 (SEK 50 billion) more than in the previous quarter and US$9,703,440,000 (SEK 80 billion) more than in the fourth quarter of 2019.
In the household sector, the largest net increase, US$4,123,962,000 (SEK 34 billion), came from equity funds, while the value of the household sector’s bond and money market funds decreased by US$242,586,000 (SEK 2 billion).
In terms of total fund wealth in the household sector, the equity funds category remains by far the largest category, with US$62,548,560,240 (SEK 516 billion), followed by US$ 20,970,731,300 (SEK 173 billion) in fund-of-funds.
Swedish krona exchange rate was also strengthened during the reporting period.
The average exchange rate for one euro was SEK 10.28 in the fourth quarter of 2020, compared with SEK 10.36 in the previous quarter. The Swedish krona was also strengthened against the US dollar, with an average exchange rate of SEK 8.63, compared with SEK 8.87 in the previous quarter. This means that fund investment in foreign currency decreased in value calculated in Swedish kronor.
There were 772 active funds in the fourth quarter, which is eight more than in the previous quarter.