In January , a total of EUR 1.1 billion in new capital was invested in mutual funds registered in Finland. Fund capital also increased due to favorable market developments. The total value of fund capital at the end of the month was EUR 134 billion.
In January, a total of EUR 356 million was invested in equity funds. A total of EUR 522 million was invested in fixed income funds. In addition, a total of EUR 181 million of new capital was invested in asset allocation funds and EUR 11 million in alternative funds.
In 2020, a total of 1.2 billion euros new capital was invested in mutual funds registered in Finland. Assets under management also increased due to favorable market developments. The total value of assets under management at the end of the year was 132 billion euros. Since June 2020, the Fund Report has included an ESG rating that shows how well there is information available related to the fund’s responsibility.
In December, a net amount of 919 million euros was invested in the funds. Equity funds received 47 million euros and money market funds received 617 million euros. Moreover, asset allocation funds received 280 million euros and alternative funds 84 million euros new capital. Bond funds had net redemptions of 109 million euros. Throughout the year, net redemptions were made from fixed income funds, but other funds received net subscriptions.
Funds domiciled in Finland received net subscriptions of 274 million euros. However, assets under management decreased due to market developments. Aggregate assets under management were 122 billion euros at the end of month. Since June 2020, Fund Report has contained MSCI ESG -metrics that provide information on sustainability.
In October equity funds received 448 million euros of new capital. Short term funds received 134 million euros and asset allocation funds received 94 million euros. Additionally, alternative funds received 12 million euros of new capital. Most of the redemptions were from bond funds that had net redemptions of 414 million euros.
Funds domiciled in Finland had net subscriptions of over half a billion euros. However, aggregate assets under management declined due to market developments. Aggregate AuM was 122 billion at the end of September. Since June, Finnish Fund Report has included ESG ratings for funds. These ratings provide information on sustainable investing.
In September, equity funds received inflows of 381 million euros. Short term and asset allocation funds received inflows of 138 and 117 million, respectively. In addition, alternative funds received inflows of 52 million. The largest outflows were from bond funds, totaling 164 million euros.
Rize Sustainable Future of Food UCITS ETF – Europe’s first sustainable food ETF
Rize Education Tech and Digital Learning UCITS ETF – Europe’s first digital education ETF
London, UK – September 10th, 2020 – Rize ETF, Europe’s first specialist thematic ETF issuer, has today registered two brand new ETFs in Finland. The Rize Sustainable Future of Food UCITS ETF (FOOD) and the Rize Education Tech and Digital Learning UCITS ETF (LERN) are now registered for sale in Finland and are available to Finnish investors through platforms and broker-dealers.
The new ETFs come on the back of the Finnish launch of the Rize Cybersecurity and Data Privacy UCITS ETF (CYBR) and the Rize Medical Cannabis and Life Sciences UCITS ETF (FLWR) in May 2020.
“The Scandinavian market – and in particular the Finnish market – has always been a strategic focal point for us. Finnish investors have always supported our thematic ETF launches, both at our old shop and now once again at Rize ETF, and it’s been wonderful to see how many are willing to look beyond traditionalist thinking and consider themes in their portfolios. For us, that is what thematic investing is all about, looking beyond just a few years and capturing tomorrow’s most important, exciting and meaningful growth stories. We hope that our unique portfolio construction combined with our first-to-market ideas/ETFs will continue to be welcomed by the Finnish market,” says Rahul Bhushan, co-founder of Rize ETF.
Funds domiciled in Finland had net subscriptions of 343 million euros in August. Aggregate assets under management grew also due to favorable market developments. Aggregate assets under management at the end of month were 122 billion euros. Since June of 2020, Fund Report has contained ESG -metrics to provide sustainability information on funds.
In August, equity funds received inflows of 370 million euros. Short term funds received 19 million and alternative funds 88 million. Asset allocation funds had outflows of 45 million euros and bond fund received the largest outflows, totaling 88 million euros.
Low carbon and fossil-free funds have gained a lot of attention and inflows all across the Nordics, as customers are raising their climate ambitions. Four of SPP Funds fossil-free sustainable funds have therefore been made available on Investment Research’s platform to cater to the Finnish market.
“We see an increasing demand across the Nordics for sustainable solutions in general and fossil-free solutions more specific. The demand derives from both private and institutional investors. It is very encouraging to see the interest gaining momentum in Finland too”, says Åsa Wallenberg CEO SPP Funds.
The funds that have been made available, as of July 2020, are:
- SPP Aktiefond Global €
- SPP Emerging Markets SRI €
- SPP Aktiefond USA €
- SPP Aktiefond Europa €
“Finnish investors increasingly recognize global issues, such as climate change, as both investment risks and opportunities. We are therefore very happy to announce that we can now showcase these four funds to our client base. It is also great to see that SPP Funds has joined the Finnish Mutual Fund Report to increase their presence among Finnish institutional and retail investors”, states Jussi Kanerva, CEO of Investment Research Finland.
Funds domiciled in Finland received inflows of 427 million euros. The fund capital grew as well, due to favorable market developments. The aggregate end of month fund capital was 119 billion euros. From June, Mutual Fund Report has included MSCI ESG metrics that provide information on fund’s responsibility.
Short-term funds received the largest subscriptions
Equity funds received net subscriptions of 50 million euros in June. Short-term funds had inflows of 327 million and bond funds outflows of 91 million euros. Asset allocation funds received net subscriptions of 68 million euros. Alternative funds had inflows of 10 million euros.
Funds domiciled received inflows of 536 million euros. Fund capital also grew due to favorable market developments. Aggregate end of month fund capital was 117 billion euros. June’s Mutual Fund Report includes MSCI ESG metrics that provide information on funds’ responsibility.
Equity funds received largest subscriptions
Equity funds had subscriptions of 229 million euros in June. Bond funds received inflows of 111 million and short-term funds 91 million. Asset allocation funds had subscriptions of 149 million. Alternative funds had outflows of 44 million euros.
Investor interest in responsible investing has been growing for a long time. For the first time, May’s Fund Report now includes ESG ratings that provide information on the responsibility of the funds. Funds domiciled in Finland had inflows of 480 million euros. Aggregate AuM at the end of the month was 115 billion euros.
There are many different ways to assess and measure the responsibility of funds. Jari Virta, the leading lawyer of the FFI, says that several commercial service providers provide various calculations and comparisons. In addition, the EU is preparing new regulations on sustainable financing and assessment of the sustainability of investments. The Fund Report produced by Investment Research Finland Ltd for the FFI now includes fund specific ESG quality scores and ESG coverage metrics provided by MSCI Incorporated’s analysis.
The ESG rating measures the ability of the fund’s holdings to manage medium and long-term risks and opportunities related to environmental, social, and governance factors. ESG scores range from 0 to 10 with 10 being the best possible.
“We respond to the need for information by adding ESG information to the Fund Report. When interpreting the figures, it is prudent to keep in mind that there does not yet exist a uniform regulation or guidance on the ESG metrics of funds. Thus, the figures offered by different service providers may vary somewhat between funds, companies, and markets “, says Virta.