Posted inNORDICS

swedes eye european stocks

None of the Stockholm-based pension funds and banks we visited in December expected to increase their continental stock exposure over the following 12 months – in part reflecting fears that krona appreciation against the euro could negatively affect the outlook for local exporters. Some 70% of interviewees planned to maintain their allocations, while the remainder forecast lower weightings.

Yet there are signs demand for the asset class is returning. alt=''According to voting data from the Expert Investor Nordic conference this month, half of Swedish fund selectors now expect to increase their broad European stock exposure – the most positive response from this group on any major equity region.

Appetite for continental small caps is similarly strong, with more than 40% of delegates planning higher weightings, and less than one-fifth predicting allocation cuts.

The return to European risk assets appears linked to confidence that the euro will survive – in the short- to medium-term at least. However, Swedish fund selectors also support the idea that the single currency bloc should be restructured, with almost half favouring a new union of fiscally-strong member states.

Platinum members can view a full breakdown of the event voting here, as well as the December research report.

tom@ybc.tv

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