At the end of the second quarter of 2005, total fund wealth invested in mutual funds registered in Sweden amounted to SEK 993 billion. This is an increase of SEK 89 billion since the end of previous quarter.
Directly owned wealth of households accounted for the largest part of the total increase in fund wealth, and increased during the quarter from SEK 318 to 346 billion. A considerable part of fund wealth is also indirectly owned by households via unit linked funds, and via PPM (Premium Pension Authority) savings. At the end of the second quarter, total fund wealth invested in unit linked funds amounted to SEK 241 billion, and fund wealth in PPM amounted to SEK 154 billion.
Low net savings for households
During the period, total net savings of households amounted to SEK 286 million. Net savings consist of both deposits and payments. The largest part of household net savings consisted of fund-of-funds, amounting to SEK 1.1 billion. Household deposits of equity funds amounted to SEK 7.9 billion during the quarter, while payments were SEK 9.2 billion, resulting in net savings of equity funds of -SEK 1.3 billion. Net savings for mixed funds were also negative. Regarding the household sector, net savings for the second quarter in mixed funds, equity funds and even in a total perspective were at the lowest level since the first quarter of 2003.
Favourable price trends for equity funds
Of total fund wealth amounting to SEK 993 billion, equity funds account for the largest share, or SEK 578 billion. This is an increase of SEK 56 billion compared to the figure at the end of the first quarter. Of the total increase in fund wealth in equity funds of SEK 56 billion, net savings accounted for SEK 4 billion of this wealth. One reason for this additional increase is due to fluctuations on the stock markets and foreign exchange markets. During the quarter, the Stockholm stock exchange rose by 6 per cent, a situation which of course has been favourable for equity funds invested on the Swedish market. Another reason is that during the quarter the US dollar has appreciated against the Swedish krona, beneficial for funds invested on the American market. The euro also appreciated against the Swedish krona during this period.