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220756
Mutual funds reduce annual results
statistikk
2015-09-11T10:00:00.000Z
Banking and financial markets
en
vpfond, Mutual funds, mutual fund shares capital, profit and loss account, balance sheet, stocksSecurities markets , Banking and financial markets
false
An overview of the Norwegian mutual funds, with a focus on share capital, transactions and mutual funds’ assets.

Mutual funds, 2014

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Mutual funds reduce annual results

Following two years of sharp profit increases, mutual funds faced a NOK 7.3 billion, or 7.5 per cent decline in results from 2013 to 2014. The reduction was primarily a result of a reduction in capital gains. The result is still historically good.

Main figures - Mutual funds. NOK MillionPublished 11 September 2015
2014
TOTAL ASSETS907 581
Mutual fund shares at par value577 244
NET INCOME90 527
Number of mutual funds384

Source: Statistics Norway

2014 saw Norwegian mutual funds earning net profits of NOK 90.5 billion after taxes. This is NOK 7.3 billion less than 2014, but still more than in previous years. The decrease is mainly related to a reduction in capital gains. Net unrealised capital gains were reduced from NOK 66.8 billion in 2013 to NOK 34.5 billion in 2014. Meanwhile, realised capital gains increased from NOK 17.5 billion in 2013 to NOK 39.4 billion in 2014. As observed in several previous years, the largest contribution to overall profits in 2014 was from equity funds, adding NOK 69.7 billion to total profits.

2014 also saw management costs totalling NOK 5 billion. This is a NOK 400 million decline from 2013, when management costs totalled NOK 5.4 billion.

Strong increase in bond funds’ asset value

The total value of all assets held by mutual funds increased by NOK 178.3 billion in 2014, to a total of NOK 907.6 billion by the end of the year. The largest value increase was observed in the funds’ possessions of long-term bonds, with NOK 96.9 billion. Equity ownership increased by NOK 36 billion during the same period.

Bond funds increased their share of total assets held by mutual funds from 20 per cent in 2013 to 28.5 per cent in 2014. Equity funds still held the largest share of total assets, with 50.2 per cent of total values being held by equity funds. A total of 16.8 per cent were held by money market funds and other bond funds and 4.5 per cent by hybrid funds. This distribution is reflected in the types of assets held by the different funds: NOK 377.8 billion worth of the funds’ total assets consisted of equity, of which NOK 291.4 billion was foreign registered. The funds also held long and short-term bonds worth NOK 324.3 billion and NOK 38.3 billion respectively. The funds had also allocated NOK 123.7 billion in Norwegian and foreign fund shares.

Continued growth in the share capital

The total share capital of Norwegian funds saw a 24.6 per cent increase, to a total amount of NOK 902.6 billion in 2014. The growth was due to high net purchases of fund shares, combined with a value increase in the funds’ asset portfolios. Net purchases of fund shares in 2014 totalled NOK 101.8 billion. By comparison, total net fund share purchases amounted to NOK 26.8 billion in 2013. The strong growth is mainly due to net purchases of bond fund shares, where net purchases totalled NOK 105 billion. The total net purchases of other fund types were in other words slightly negative. The funds’ retained earnings increased by NOK 61 to NOK 266.5 billion in 2014. This represents an increase of 29.7 per cent, and is due to a growth in value of the funds’ portfolios.