Fixed income takes bulk of NOK7bn to investment funds in Norway in May

Jonathan Boyd
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Fixed income takes bulk of NOK7bn to investment funds in Norway in May

Data published by the Norwegian Fund and Asset Management Association  (VFF) points to NOK7bn (€715m) of net inflows to locally available investment funds through May - the majority of it going into fixed income funds.

Some NOK9.2bn of net inflows went to fixed income, while net redemptions of NOK2.2bn hit equity funds.

VFF noted that retail investors seem to have sought out relative safety through the month. Of total net retail inflows of NOK180m, about NOK0.5bn flowed out of equity funds while net inflows to fixed income funds hit NOK740m. Factors cited by VFF in the direction of flows include the ongoing trade war between the US and China, increasing macroeconomic uncertainty and a declining growth outlook.

This year to date, retail investor net inflows from retail investors has hit NOK4.3bn. Total retail assets managed has risen by some NOK18.3bn (€1.87bn) to some NOK246bn (€25.1bn).

For those using self selection in the long term savings market - penjonsmidler med fondsvalg - the bulk of inflows were put into equity funds, some NOK831m out of NOK1.2bn, with some NOK336m put into fixed income funds. This category includes the IPS individual pensoin savings accounts as well as life insurance assets with the option to select funds.

Turning to the institutional segment, VFF notes that net inflows hit NOK5.7bn in May, of which NOK8.3bn went to fixed income funds, while redemptions from equity funds hit NOK2.6bn.

Foreign investors made net redemptions of some NOK60m over the month.

Total assets in the Norwegian investment fund industry have increased by some NOK86bn through the year to the end of May, to some NOK1.215trn (€124bn), or an increase of some 8%.

By comparison, Norway's sovereign wealth fund, the Pension Fund Global, or 'oil fund', reported that it returned some 9.1% in the first quarter, or NOK738bn (€75.4) in the first quarter of 2019.

The fund's value as of the end of March was NOK8.938trn (€913bn).

 

Jonathan Boyd
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Jonathan Boyd

Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope.