Data published by the Norwegian Fund and Asset Management Association (VFF) suggests that almost a year of positive net monthly contributions to equity and balanced funds came to a sudden halt in August as local investors were spooked by volatility in markets.
The month saw a net NOK755m (€82m)withdrawn from funds by retail investors, with gross withdrawals of NOK4.9bn overshaddowing gross investments of NOK3.9bn.
The net withdrawals equate to 2.69% of total assets, which VFF said is in line with the average redemption statistics covering the past decade.
By type of fund, some NOK845m was withdrawn on a net basis from equity funds, and NOK203m from fixed income funds, although balanced funds managed to attract NOK90m.
VFF notes that the trend was upset by volatility in markets, particularly the more than 40% fall seen in the Shanghai stock market from the middle of June through to the end of August. The main index of the local Oslo bourse in contrast shed just 7%.
Once again, VFF noted that importance of taking a long term investment horizon and for retail investors in particular to hold their nerve when markets swing as they have done recently.
However, institutional investors were also net sellers thorugh the month, with NOK2.3bn withdrawn, of which NOK1.1bn came from balanced funds and NOK359m from equity funds.
Foreign investors sold for NOK878 on a net basis, meaning they have assets of some NOK95bn (€10.3bn) in Norwegian securities funds.