Oil fall lays Norwegian funds low

The oil price fall has hit Norwegian equity funds hard, and prompted the government to call an emergency meeting on the economy.

With a stock market heavily reliant on oil production and services company listings – such as Statoil, Aker Solutions and Frontline – it is unsurprising that Norwegian equity funds have been hard pressed in the opening weeks of 2016.

Data from Morningstar Norway – below – illustrate the level of falls experienced by funds in local currency thus far.

However, the outlook has become so concerning to the government that prime minister Erna Solberg on the morning of 25 January called in not only Norges Bank governor Øystein Olsen, head of the central bank, but also Harald Magnus Andreassen, chief economist of Swedbank, professor Steinar Holden of the University of Oslo, Elisabeth Holvik, chief economist at the Sparebank 1 group, and professor Hilde Bjørnland at the BI Norwegian Business School.

Following the meetings, the government announced that it had had the “thumbs up” from these macroeconomic experts. However, the meeting comes shortly after the OECD said in its Economic Survey of Norway 2016 that not only was the economy sensitive to changes in the oil price, but that sectors such as construction were subject to a near trend of soaring residential house prices, which posed a challenge to the broader economy.

According to the Morningstar data, the losses made by some Norway equity funds have tipped into double digits within less than a month. That said, many have offered up negative return over the past 12 months, reflecting the ongoing trend for lower commodities prices affecting commodities exporting countries.

Much will depend on the portfolio itself. For example, the Swedbank Generator is over 35% exposed to the energy sector, and is more than 71% exposed to Europe ex-euro, and has Norwegian energy firm DNO as a top five holding, according to Morningstar data.


Return YTD
Swedbank Generator
KLP AksjeNorge
Eika Norge
Fondsfinans Norge
Storebrand Vekst
DNB Norge Selektiv
DNB Norge Selektiv (II)
DNB Norge Selektiv (III)
Storebrand Optima Norge
DNB Norge (III)
DNB Norge
DNB Barnefond
DNB Norge (IV)
Atlas Norge
Carnegie Aksje Norge
ODIN Norge B
Alfred Berg Indeks Classic
KLP AksjeNorge Indeks
KLP AksjeNorge Indeks II
Storebrand Indeks – Norge
Alfred Berg Indeks I
DNB Norge Indeks
ODIN Norge C
Carnegie Norge Indeks
Danske Invest Norge I
PLUSS Indeks
ODIN Norge D
ODIN Norge A
Delphi Norge-9,23-9,179,374,585,99
Danske Invest Norge II
Nordea Avkastning
Landkreditt Norge
Nordea Kapital
Storebrand Aksje Innland
Alfred Berg Humanfond
Alfred Berg Norge Classic
Alfred Berg Gambak
Storebrand Norge I
PLUSS Aksje (Fondsforvaltning)
Alfred Berg Aktiv
Storebrand Norge
Nordea Norge Pluss
PLUSS Markedsverdi (Fondsforvaltning)
Pareto Investment Fund A
Pareto Investment Fund B
Pareto Investment Fund C
Storebrand Verdi
Nordea Norge Verdi
Danske Invest Norge Vekst
Handelsbanken Norge
Holberg Norge
Pareto Aksje Norge B
Pareto Aksje Norge C
Pareto Aksje Norge D
Pareto Aksje Norge I
Pareto Aksje Norge A
FORTE Trønder
Landkreditt Utbytte

(Source: Morningstar Norge)


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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