Market turmoil and the Swedish investment funds

2008-02-08 | Reports Consumer Markets

The turmoil on the financial market has caused declining values and large net outflows in certain Swedish investment funds. Furthermore, some securities have become more difficult to value. According to this investigation, the fund management companies have taken actions to satisfactorily deal with this matter.

FI will take the following measures

Finansinspektionen is continuing to closely monitor the market development and its effect on fund management companies and investment funds.

The investigation

At the end of January, Finansinspektionen submitted questions to fifteen Swedish fund management companies in light of the negative market trend. This investigation is important in order to assess how the market turmoil over the past six months has affected investment funds and to identify existing risks for private savers. The range includes a large number of special funds, mainly hedge funds and fund of funds. The questions have dealt with yield, risk levels, deposits and withdrawals as well as valuation and liquidity aspects.

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