Mutual funds, 2004

The total growth in unit trusts is mostly due to the strong development in the Norwegian security market throughout 2004. The value of investments in equities, units and primary capital certificates increased by 65 per cent, while the value of investments in bonds increased by 33 per cent. Furthermore, the value of investments in certificates fell by 15 per cent. Equities, units and primary capital certificates still have the largest proportion of the total assets by 58.6 per cent. The proportion was 48 per cent in 2003.

Of the NOK 119.9 billion invested in equities, units and primary capital certificates in 2004, 48.7 per cent was issued by foreign sector, while 51.3 per cent was issued by domestic sector. In 2003 60 per cent was issued by foreign sector, while 40 per cent was issued by domestic sector.

After tax profits decreased from NOK 25.7 billion in 2003 to NOK 20.4 billion in 2004 mostly due to the reduction of net changes in unrealized gains/ losses on securities from NOK 25.2 billion in 2003 to NOK 8.7 billion in 2004. However, the realized profits on securities went from a loss of NOK 3.5 billion in 2003 to a gain of NOK 8.7 billion in 2004.

The households maintained their position as the largest investor in unit trusts. By the end of 2004, the households held 39.9 per cent of the total assets in unit trusts. Norweagian unit trust shares in other Norweagian unit trusts were included in the total assets in 2004. Measured by market value, they owned NOK 22.9 billion worth of units or 11.3 per cent the total assets in unit trusts.