Nordea's internal transfer cause a EUR 1.7bn redemption from funds

In May, equity funds experienced the largest net redemptions, totaling EUR 2.2bn, of all Finland-registered funds. Most equity fund net inflows went into funds investing in the Nordic countries.
Photo: Ritzau Scanpix/Mads Claus Rasmussen
Photo: Ritzau Scanpix/Mads Claus Rasmussen

The biggest net outflows among funds registered in Finland came from Nordea (EUR -1.7bn) and OP Fund Management (EUR -205m), while Evli and FIM attracted the largest net inflows in May, reports Finance Finland, the Finnish financial lobbying organization.

Despite Nordea’s significant outflow last month, the bank remains the biggest fund provider with market shares of 39.3 percent, followed by OP Fund Management’s market shares of 20.8 percent.

Henrika Vikman, Managing Director of Nordea Fund Management, tells AMWatch that almost the entire net outflow from Nordea's funds was caused by the group’s internal arrangements.

"Finance Finland’s report shows an outflow of EUR 1.7bn from Nordea's funds. In practice, this is a result of internal transfers. Assets from funds registered in Finland were transferred to funds registered in other countries as a part of Nordea's internal arrangements," she has explained in an email to AMWatch.

Evli was unavailable to comment on the issue before the deadline. 

International trade tensions

Total AUM of investment funds registered in Finland experienced a minor decline in May, decreasing from EUR 116.8m to EUR 114m as a consequence of market fluctuations. Net redemptions from investment funds totaled EUR 1.4bn in the same month.

According to Finance Finland, about EUR 1.4bn of equity fund redemptions were the result of outflows from Finnish funds into foreign funds.

"International trade tensions have been visible in stock markets, and investments moved from equities to fixed income. The best thing for an investor to do is keep cool, consider investments in a long-term perspective, and remember the importance of diversification," Finance Finland Senior Legal Adviser Jari Virta says in a statement.

Nordic funds achieve the most net inflows

Equity funds have experienced the largest net redemptions, totaling EUR 2.2bn, while asset allocation funds saw redemptions of EUR 26m.

Most equity fund redemptions, EUR 886m in total, were the result of funds investing in North American equities, and most net inflows, EUR 60m in total, went into funds investing in the Nordic countries.  

Bond funds, on the other hand, received a positive net inflow of EUR 350m. Approximately EUR 416m of new capital was invested into short-term fixed income funds, while in May, alternative funds experienced a net inflow of EUR 13m.

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