Portfolio assets consist of shares and investment fund shares as well as long-term and short-term debt securities. The increase in assets in the second half of 2016 was due to an increase of SEK 126 billion and SEK 125 billion in holdings in foreign shares and investment fund shares, respectively. Investment fund share holdings increased primarily in Luxembourg, while share holdings increased most in the United States. Fifty-eight percent of Sweden’s total investment fund share holdings are found in Luxembourg, while 44 percent of Sweden’s total investments in foreign shares were held in the United States.

Holdings in foreign debt securities decreased by SEK 81 billion in total compared with June 2016. Long-term and short-term debt securities decreased by SEK 73 billion and SEK 9 billion, respectively. Swedish investors decreased their investments in mainly British and Danish long-term debt securities, by SEK 17 billion and SEK 16 billion, respectively. The decrease in short-term debt securities was mainly due to decreased investments in Norway.

The United States continues to be the single largest recipient country of Swedish portfolio investments abroad. Total holdings in the United States corresponded to SEK 1 394 billion, or nearly 30 percent of total portfolio assets, an increase of one percentage point from June 2016. There are also still large holdings in Luxembourg and the United Kingdom, as over 24 percent of Swedish portfolio assets in total are held in these two countries. However, holdings in the United Kingdom decreased by SEK 40 billion, or 12 percent, from June 2016, while holdings in Luxembourg increased by 10 percent.

Other financial institutions remain the largest holder sector

The other financial institutions sector, which includes securities companies, fund management companies and insurance companies, continues to be the largest sector of holders and held 60 percent of total portfolio investments abroad. The sector’s holdings amounted to SEK 2 830 billion, an increase of 3 percent from June 2016. Among Sweden’s total foreign shareholdings, the sector held 74 percent, and the percentage of holdings in foreign investment fund shares and debt securities amounted to 48 percent and 46 percent, respectively.

The decreased holdings in foreign debt securities, corresponding to SEK 81 billion, was due to a decrease of SEK 27 billion in government debt securities and a decrease of SEK 54 billion in debt securities issued by other issuers.

Holdings in long-term debt securities issued by other issuers amounted to SEK 608 billion, and accounted for 57 percent, while holdings in long-term government debt securities accounted for 43 percent. Among short-term debt securities, holdings issued by other issuers accounted for the largest proportion, 90 percent, while government certificates accounted for 10 percent, according to the December 2016 survey.

As in previous surveys, holdings in long-term debt securities were dominated by debt securities issued in US dollars and euros, accounting for 60 percent of holdings. In short-term debt securities, US dollars was the largest denomination currency, accounting for 44 percent of holdings.