Portfolio assets consist of foreign shares, investment fund shares, and long-term and short-term debt securities. A large part of the growth in assets in the second half of 2017 is explained by a SEK 223 billion increase in foreign share holdings at the same time as holdings in foreign investment fund shares increased by SEK 122 billion. Swedish investors primarily increased share holdings in US shares and holdings in funds registered in Luxembourg. US shares accounted for 41 percent of Sweden’s total investment in foreign shares and amounted to SEK 1 092 billion at the end of 2017. Fifty-six percent of Sweden’s total investment fund share holdings, which corresponds to SEK 751 billion, are found in Luxembourg.

Holdings in foreign debt securities increased by SEK 32 billion in total compared with June 2017. Long-term debt securities increased by SEK 41 billion, while short-term debt securities decreased by SEK 9 billion. Swedish investors primarily increased their investments in US and Norwegian long-term debt securities, by SEK 15 billion and SEK 12 billion, respectively. Holdings in short-term debt securities decreased, mainly due to decreased investments in Denmark and Norway.

The United States continues to be the single largest recipient country of Swedish portfolio investments abroad. Holdings in the United States correspond to SEK 1 486 billion, or 28 percent, of total portfolio assets. There are also still large holdings in Luxembourg and the United Kingdom, as 22 percent of Swedish portfolio assets in total are held in these two countries.

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 holder sector and held 65 percent of total portfolio investments abroad at the end of 2017. The sector’s holdings amounted to SEK 3 418 billion, an increase of SEK 317 billion compared with June 2017. Other financial institutions hold mainly shares and investment fund shares, and this sector also has the largest holdings of debt securities.

Increased holdings in long-term government securities

In the last six months of 2017, Swedish investors increased their holdings of long-term debt securities by SEK 40 billion. Holdings in long-term government securities amounted to SEK 532 billion at the end of 2017, which means that 46 percent of Sweden’s assets in foreign long-term debt securities are issued by foreign governments. Ninety-two percent of short-term debt securities consist of certificates issued by other issuers, and short-term government securities account for eight percent.

Holdings in both short-term and long-term debt securities were dominated by securities issued in US dollars, euros and Swedish kronor, together accounting for 79 percent of total holdings.