Level of automated fund savings up again in Norway

Research published by the Norwegian Fund and Asset Management Association suggests that domestic retail investors continue to increase the monthly average sum invested through its members’ fund savings plans.

The new figures show that there are some 710,000 such plans, resulting in a net NOK5.8bn (€747m) being invested in equity funds and balanced funds over the past year. The plans are effectively agreements between individual investors and fund providers to facilitate automation of regular savings.

The Association has done an annual review each year since 2006 into the effectiveness of this type of saving in generating new collective investments.

The results are based on data collected from its members. The average annual total has increased from NOK4.4bn in the first review, reflecting both an increase in the number of plans and the increase in the average amount invested. Most of the money is sourced via regular monthly payments from investor’s bank accounts.

Some 450,000 Norwegians have agreements in place with one or more securities funds. The past year saw growth in the number of plans, although there is some way to go to reach the all time high figure of 746,000 seen in 2007.

The average monthly sum invested has increased from NOK677 in 2010 to NOK686 in 2011. The figure means that the average has increased by some 7.5% in the past six years.

Other key findings by the Assoication include:

– Most plans are agreed with the 40-59 age group, which accounts for some 340,000 plans, or nearly half of them.

– The 25-39 age group accounts for 182,000 plans, the 0-14 age group has 45,000, while the 15-24 age group has 36,000.

– The average monthly sum invested tends to be higher in the higher age groups

– The 25-39 age group has increased its average monthly sum invested faster than any other in recent years – up 27% between 2009-2001, to an average of NOK725

– In nominal terms the 40-59 age group accounts for the biggest overall sum invested monthly via these plans: NOK251m per month.

– Men are much bigger users of these savings plans as a means to invest in funds; they invest NOK311m monthly against NOK176m by women.



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