Strong H1 for fund flows driven by savings contracts in Norway

Data published by the Norwegian Fund and Asset Management Association (VFF) suggests that there was a strong rise in the number of savings contracts or ‘agreements’ signed between Norwegian retail investors and local institutions during the first half of the year.

Some 50,000 additional contracts were agreed, with a focus on saving in securities funds. In total Norwegians have some 760,000 such contracts in place, VFF said, which tends to result in a fixed monthly sum being invested in equity or balanced funds.

The increase in the number of contracts comes as data also suggests an increase in the average sum saved: from some NOK799 to NOK866 (€85.6 to €92.8) between the start of 2014 to June 2015.

VFF chief exeuctive Bernt Zakariassen (pictured) said such regular savigns were benefitting Norwegian savers.

“With a monthly savings contract you spread the investments in the equity market over time, and that way the risks are lower than if you try to find the ‘right’ time points. A savings contract will probably also give you a higher average return than if you try to bet wither the stock market will go up or down in the short term.”

Men are still saving more through the contracts than women. The have both more contracts and on average save more per month than women, the data suggests. Currently men account for some 64% of this part of the Norwegian financial services market. The age group 40-59 account for the greatest number of contracts.

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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