As uncertainty persists, investors will withdraw EUR 100 million from funds registered in Finland
INVESTORS In April, it raised more than EUR 100 million from funds investing in Finland.
Finance Finland revealed on Monday that the transactions reduced the capital of such funds by EUR 104 million as investors weighed their options amid the uncertainty surrounding the tightening of monetary policy and the war in Russia in Ukraine.
Investors raised a total of EUR 242 million from equity funds and EUR 313 million from short-term fixed income funds. New investments in hedge funds amounted to EUR 105 million, in long-term fixed income funds to EUR 301 million and in alternative funds to EUR 45 million.
Last month was difficult, especially for fixed income investors, as the value of fixed income funds fell due to rising interest rates.
Market developments also had a negative effect on fund capital.
Mariia SomerlaAn expert from Finance Finland emphasized that the acceleration of inflation has led to an unusually sharp rise in interest rates. For example, Euribor 12 rose above zero for the first time in more than six years in April.
“The eurozone has long had an era of negative market interest rates. This begs the question: is the eurozone also completely free of negative interest rates at the end of the year? he said.
Finance Finland reminded that the key indices fell in April. In the United States, the reaction is due to market disappointment in the first quarter results of several large technology companies and concerns that consumer prices will accelerate to 8.5 percent. Monetary policy is expected to remain tighter to curb inflation.
In Europe, the climate of insecurity is perpetuated by Ukraine’s ongoing war.
Statistics Finland has estimated that approximately 1.3 million Finns had mutual fund savings in 2020. The median investment of the funds was approximately EUR 4,000.
Aleksi Teivainen – HT