March decline in equity, mixed fund sales in Norway.
After two months of stronger net sales of equity and mixed funds, March saw investors pull back, said the Norwegian Fund and Asset Management Association (Verdipapirfondenes forening).
Net drawdown for equity funds hit NO628m (€82m) for the month, while mixed funds saw net subscriptions of NOK151m (€20m).
Norwegian retail investors have just under NOK100bn (€13.3bn) in equity funds and NOK13.4bn (€1.8bn) in mixed funds.
So far this year retail investors’ capital in equity funds has gained NOK9.9bn (€1.3bn) in value. Of this NOK0.6bn has come from net sales, while the remainder of the gain is accounted for by appreciation of capital.
“During the first quarter Norwegian equity funds increased the value of their assets by about 10%. This is a very good return over a short period,” said Bernt Zakariassen, VFF director general.
“In the past few years the stock market has swung considerably, and it is therefore important to think long term and not be panicked into selling out because the market could fall again. When the stock market hit bottom in November 2008 the value of Norwegian private investors’ capital in equity funds was slightly over NOK48bn. That means that the capital has more than doubled since then.”