Mutual funds, 2005

The strong development in the Norwegian and in international security markets throughout 2005 is the main cause for the total assets growth in unit trust. The value of investments in equities, units and primary capital certificates increased by 58.3 per cent, while the value of investments in bonds and certificates increased respectively by 31.8 and 50.5 per cent. Equities, units and primary capital certificates still have the largest share of the total assets by 60.1 per cent. However, the strong growth in net purchase of shares in unit trusts also contributed to the strong growth in total assets. Norges Bank reports that the net purchase of shares in unit trust increased by 164 per cent, compared with 2004.

Norwegian versus foreign equities

Of the NOK 189.7 billion invested in equities, units and primary capital certificates in 2005, 49.8 per cent was issued by foreign sector, while 50.2 per cent was issued by domestic sector. Whereas in 2004, 48.8 per cent was issued by foreign sector, while 51.2 per cent was issued by domestic sector.

After tax profit increased from NOK 20.5 billon in 2004 to NOK 48.3 billion in 2005 mostly due to the increase of net changes in unrealized gains on securities from NOK 8.7 billion to NOK 27.3 billion in 2005. Furthermore, realized profits on securities increased by 99.9 per cent to NOK 17.5 billion in 2005.

The households are still most important

The households maintained their position as the largest investor in unit trusts. By the end of 2005, the households held 41 per cent of the total assets in unit trusts, while financial enterprises held 38.4 per cent of the total assets in unit trusts.