July a quiet month as Norwegian, Danish investors edge towards bonds

Figures from Norway and Denmark’s asset management industry associations suggest neither market was particularly busy in July, although there was a continued trend out of equity into fixed income assets.

The Norwegian Fund and Asset Management Association said that net investments by private investors hit NOK93m.

Investors put an additional net NOK401m into bond funds, but redeemed NOK298m from equity and NOK10m from mixed funds.

Association director Bernt Zakariassen added that the Association was urging investors to take a long term view in light of recent market volatility. For those in equity funds taking a long term view the recommendation is to sit still.

“All the research suggest that people to try to timem the market almost always end up with lower returns,” the Association stated in a note to concerned investors.

Figures for the Danish market from The Federation of Danish Investment Associations suggest there was a retrenchment towards domestic fixed income assets away from equity and foreign bonds.

Investors bought DKK4.5bn worth of Danish bonds, but sold DKK0.5bn worth fo equity holdings, and DKK1.5bn of foreign bonds. It was a good month for Japanese equity because of the strenghening of the yen, but overall not a great month for global stockmarkets.

The demand for bonds impacted both yields and prices, however, the Federation notes it figures do not include the impact of the market downturn in the first days of August.

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