Mutual funds, quarterly figures, Q1 2009

Investors’ net purchases of mutual fund shares constituted NOK 5.5 billion in equity funds, NOK 6.1 billion in money market funds and NOK 93 in hybrid funds. Net sales of shares in bond funds of NOK 424 million contributed to the total net purchases of mutual fund shares to be lowered to NOK 11.3 billion.

Net value of shares lowered despite net purchases

Despite relatively high net purchases during the period, the net value of the mutual fund shares still went down in value. From the end of the 4^{t h} quarter of 2008 to the end of the 1^{s t} quarter of 2009, net value of the mutual fund shares fell by NOK 4 billion to NOK 313.3 billion. This is equivalent to a fall of 1.3 per cent. In comparison, the total net value of mutual funds fell by 15.5 per cent from the 3^{r d} quarter of 2008 to the 4^{t h} quarter of 2008.

Strengthened NOK resulted in losses

The losses in the funds’ portfolios were caused by the funds’ foreign assets being decreased in value during the quarter. This was caused by a strengthening Norwegian NOK in comparison to many other currencies. Many currencies, such as the Euro, SEK and GBP, were weakened by up to 10 per cent against the NOK. The funds’ assets issued domestically on the other hand, increased in value from the 4^{t h} quarter of 2008 to the 1^{s t} quarter of 2009.

Investors with renewed belief in money market funds

During the 1^{s t} quarter of 2009 there were net purchases of mutual fund shares amounting to NOK 6.1 billion in money market funds. Life insurance companies and banks were two sectors that invested in such funds. Their net purchases of shares totalled NOK 2.7 and NOK 1 billion respectively. The fact that institutional investors such as these are showing renewed interest in investing in money market funds could be due to the bond markets having further stabilised during the quarter.

Households are net puchasing again

Households were also net purchasers of mutual fund shares during the 1^{s t} quarter of 2009. Their net purchases of mutual fund shares totalled NOK 2.6 billion in the first quarter of 2009. These purchases were largely made in mutual fund shares issued by equity funds and money market funds.

Little change in ownership

At the end of the quarter, life insurance companies were still the largest owners of mutual funds, with a share of 29.2 per cent. Households’ owner share was somewhat reduced - to 25.2 per cent. Foreign investors owned NOK 28.9 billion of the total mutual fund shares at the end of the fourth quarter, or 9.2 per cent.