Mutual funds, quarterly figures, Q1 2008

The market value of mutual funds shares in all types of funds fell by NOK 42 billion from the fourth quarter of 2007 to the first quarter of 2008 to NOK 414.2 billion. This corresponds to a decrease of 9.2 per cent. Combined net sales of mutual funds shares stood for approximately NOK 1 billion of this fall, while the rest was caused by falling stock values in the financial markets and a strong Norwegian currency.

Total net sales of shares in stock funds reached NOK 8 billion, and combination funds were net sold for NOK 1.5 billion. Relatively high net purchases in money market and bond funds contributed to the market value of all mutual funds shares decreasing by only NOK 1 billion.

Many sectors net purchase shares in money market funds

Private enterprises was the sector that made the highest net purchases of mutual funds shares in money market and bond funds combined during the period with purchases amounting to 4.2 billion. A total of NOK 4.1 billion of these purchases were made in money market funds. In the same period this sector net sold shares in mutual funds for NOK 925 million. Moving investments from equity funds to money market funds and bond funds indicates that investors are looking for low risk and high liquidity. This move could be caused by the turbulent stock markets.

Private persons net sold shares in all types of funds during this period, except from in money market funds, with net sales of shares reaching a total of NOK 3.6 billion. These net sales, as well as the decrease in values of stock markets, contributed to this sectors ownership being reduced to NOK 96.2 billion.

Little change in ownership ratios

As in the previous two quarters, life insurance companies stood as the largest group of owners in mutual funds with an ownership share of 29 per cent. Private persons was the next largest owner sector with a share of 23.2 per cent, while foreign based investors had an ownership share of 9.8 per cent.