After the ups and downs of recent months, the Swiss fund market reached a five-year high of CHF671bn in June 2012, up from CHF666bn in May, according to the Swiss Funds Association.

This came partly on the back of the positive mood on the exchanges - the SMI gained 3.7 per cent, while the S&P Index was up some four per cent - and was also thanks to the euro relief rally on the markets.

Half of the increase was attributable to the positive performance on the bourses, which saw equity funds post an increase of more than CHF4bn in assets under management. New subscriptions accounted for the other half.

“Nevertheless, caution is still required looking to the coming months. After all, it was exclusively bond funds, commodities funds, and money market funds that attracted new money. Investors remain unsettled, a fact reflected in the redemptions of nearly CHF800m in the case of equity funds and CHF279m for asset allocation funds,” says Matthäus Den Otter, chief executive of the Swiss Funds Association.

By comparison, the figures for the major indexes were as follows: Dow Jones +3.93 per cent, S&P 500 +3.96 per cent, and SMI +3.70 per cent. The EUR lost 0.02 per cent against the CHF, while in the case of the USD there was a decline of 2.40 per cent.

Net inflows totalled CHF1.9bn in June 2012. Of the total fund volume, the equivalent of no less than CHF155bn was denominated in USD, with CHF162bn in EUR. CHF and USD-denominated funds accounted for virtually all of the new money.