Mutual funds, 2010

Profits after tax declined from NOK 78.3 billion in 2009 to NOK 54.4 billion in 2010. The decrease is mainly attributable to a sharp reduction in the net value of unrealised gains from about NOK 74.3 billion in 2009 to approximately NOK 30.6 billion in 2010. Realised gains, however, increased from NOK -3.8 billion to NOK 15 billion, offsetting some of the fall in unrealised gains.

Management fees, which are a cost for the mutual funds, increased in 2010 by nearly NOK 400 million to NOK 4 billion.

Increased value of holdings

The value of the mutual funds’ holdings increased for the second year in a row. The increase in 2010 amounted to NOK 92.4 billion, compared to an increase of NOK 132.4 billion in 2009.

The funds’ total assets were valued at NOK 546.3 billion at the end of the 2010. Of this amount, NOK 343.5 billion was stocks, mutual fund shares and primary capital certificates, NOK 143.8 billion was held in long-term bonds and NOK 32.2 billion was held in short-term bonds. Of the NOK 343.5 held in stocks, mutual funds and primary capital certificates, 59 per cent were held in foreign registered securities and 41 were held in domestic securities.

Growth in share capital

Total value of the mutual fund shares increased by NOK 91.9 billion, or about 20.5 per cent, to NOK 541 billion from the end of 2009 to the end of 2010. The increase in value was caused by high net purchases and increased value of the funds’ portfolios.

Financial corporations still largest owners

At the end of 2010, life insurance companies were still the largest owner sector in mutual funds, with a 31.6 per cent share. In comparison, households and foreign investors owned shares of 25 per cent and 14.4 per cent respectively of the total mutual fund shares at the end of the year.