Uncertainty directs bulk of H1 net inflows to fixed income – VFF
The Norwegian Fund and Asset Management Association (VFF) has published first half figures showing that while Norwegian investors continued to invest on a net basis through the first six months of 2016, the bulk of net investments went to fixed income funds in the face of ongoing uncertainty around markets.
Indeed, June saw net withdrawals of some NOK3.9bn (€416m), the VFF figures show, while the overall net inflows for the first half year were NOK26bn (€2.8bn).
Of the NOK26bn, some NOK25bn were accounted for by investments into fixed income portfolios. Equity funds attracted NOK2.2bn over the period. Balanced funds saw net withdrawals of NOK1.7bn over the period.
Norwegian retail investors kept a cool head, according to VFF’s managing director Bernt Zakariassen, who noted that a significant proportion of retail investors tend to invest monthly, and therefore were not big sellers of equity funds on short term market concerns.
Institutional investors remain the biggest buyers of Norwegian funds, however, investing a net NOK22.4bn (€2.4bn) over the period.
At the end of June, total assets of Norwegian funds stood at NOK918bn (€98bn), up some NOK14bn (€1.5bn) from the end of 2015.
VFF’s figures are focused on the domestic funds market. They do not include figures relating to Norway’s sovereign wealth funds, particularly the Government Pension Fund Global, which is managed by Norges Bank Investment Management, and which is currently estimated to hold assets valued at around €790bn.