Data published by the Norwegian Fund and Asset Management Association (VFF) point to positive net sales of fixed income funds to retail investors through May in the local market, while equity funds suffered outflows.
Overall net flows hit NOK65bn (€6.85bn) through the month as regards retail investors, taking total assets held by this investor group to some NOK233bn (€24.6bn)
Similarly, the institutional investors active in the local market – insurance groups, pension funds, municipalities and foundations – sold out of equity and balanced funds to the tune of some NOK150m (€15.8m) on a net basis, while directing net inflows of some NOK1.5bn (€158m) towards fixed income funds. Overall net inflows from this group hit NOK1.3bn.
Net inflows from foreign investors hit NOK445m (€47m), taking total assets to some NOK112bn (€11.8bn).
Looking across all investor types, VFF reported net inflows of some NOK2.1bn for fixed income share classes, while net outflows of NOK1.5bn hit equity and balanced funds.
Total assets across the industry locally hit NOK1.169trn (€123.4bn), which represents an increase of some NOK31bn (€3.27bn) or 2.7% since the start of the year.
The size of the investment fund industry assets has grown significantly over the past decade. End December 2008 figures suggest total assets were around NOK291.7bn (€30.8bn), as represented by those managers’ figures reported by VFF. Overall, however, while the investment fund sector continues to benefit from policies such as those targeting savings by young people towards a deposit on their first home – thus possibly encouraging use of funds for savings at the level of the individual – the local industry is somewhat overshadowed by Norway’s sovereign wealth fund, the Pension Fund Global, which claims assets as of 20 June of over €890bn.