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4003
Investors net sell mutual fund shares
statistikk
2010-08-26T10:00:00.000Z
Banking and financial markets
en
vpfondk, Mutual funds, quarterly figures, fund types (for example mutual fund, bond fund, money market fund), mutual fund shares capital, stocks, net subscriptionsSecurities markets , Banking and financial markets
false

Mutual funds, quarterly figures, Q2 2010

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Investors net sell mutual fund shares

In the second quarter of 2010, investors net sold mutual fund shares worth more than NOK 7 billion. Investors reduced their holdings in both equity funds and money market funds. The last quarter in which mutual funds in total were net sold was in the fourth quarter of 2008.

From the end of the first quarter of 2010 to the end of the second quarter of 2010, the total value of mutual funds was reduced by NOK 27.7 billion, or 5.8 per cent, to NOK 446.3 billion. Most of the decrease in value was caused by equity funds. These funds were reduced in value by 10.3 per cent.

Stocks of mutual fund shares in total and by type of mutual fund. Market value in NOK billion

The fall in value of the Norwegian registered mutual funds was due to a loss in the values of the funds` portfolios, as well as net sales of mutual fund shares. Net sales amounted to NOK 7.2 billion, while the fall in value of the shares of NOK 20 billion was due to losses in the funds’ portfolios. Because foreign currencies were relatively stable relative to the Norwegian NOK, the fall in value was mainly caused by falling values in the stock markets.

Investors reduce holdings in equity funds and money market funds

Of the total net sales of mutual fund shares, which amounted to NOK 7.2 billion, as much as NOK 6.3 billion were sold in equity funds. Many sectors net sold mutual fund shares in equity funds during the quarter.

Net purchases of shares in equity funds by purchasing sector. NOK billion.

Investors net sold mutual fund shares for NOK 2.7 billion in money market funds. Non-financial enterprises accounted for a large part of the net sales. Investors net sold bond funds and hybrid funds for NOK 1.4 and NOK 0.5 billion in the second quarter of 2010.

Possible hedging gains by households

Households net sold NOK 2.2 in shares issued by equity funds in the second quarter of 2010. These sales were followed by a period of six quarters in which households invested NOK 12.1 billion in equity funds. These sales could be due to hedging gains.

Foreign investors net sold shares in equity funds

Foreign investors also net sold shares in equity funds in this year`s second quarter. Net purchases ended at NOK 1.9 billion for this type of fund. Foreign investors invested, on a par with households, relatively large sums in equity funds. In the period from the first quarter of 2009 to the first quarter of 2010, foreign investors placed NOK 18.5 billion in equity funds.

Life insurance companies invest in bond funds

Companies in the life insurance sector invested a total of NOK 1.2 billion in all types of funds. NOK 0.8 billion was placed in bond funds and approximately the same figure was drawn from equity funds. Investing in bond funds is considered a low-risk investment.

Life insurance companies still the largest owner

At the end of the second quarter of 2010, life insurance companies were still the largest owner sector in mutual funds, with an owner share of 28.8 per cent. Households now have an owner share of 26.8 per cent. Foreign investors´ owner share decreased marginally to 14 per cent at the end of the second quarter of 2010.

Mutual funds shares capital and net purchases. Market value in NOK million (Corrected 9 September 2010)
 
  Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010
 
Total            
Mutual funds shares capital  313 151  366 313  407 386  448 739  474 148  446 428
Net purchases 11 318 13 682 15 711 20 414 12 272 -7 157
General government            
Mutual funds Mutual funds shares capital capital 13 200 14 192 14 883 14 776 15 323 14 453
Net purchases  668  283  232 -457 -129 -624
Financial corporations            
Mutual funds shares capital  148 129  170 074  185 298  200 007  208 157  200 329
Net purchases 6 611 8 055 5 385 7 720 6 137 -594
Non-financial corporations            
Mutual funds shares capital 38 126 42 350 46 513 50 666 53 989 49 309
Net purchases  509 -418 1 478 1 842 1 883 -2 756
Households            
Mutual funds shares capital 84 844  101 221  112 277  122 332  129 397  119 764
Net purchases 3 269 3 390 2 882 3 321 2 467 -2 103
Rest of the world            
Mutual funds shares capital 28 852 38 476 48 415 60 958 67 282 62 573
Net purchases  261 2 372 5 734 7 988 1 914 -1 080
 

Adjustments made in the mutual fund statistics due to nominee ownership

In order to show the actual owners in mutual funds, adjustments have been made in the statistical material. This has caused a decrease in banks and financial auxiliaries’ owner share, while employees/households have had their owner share increased.

 

The adjustments, which include both owner positions and net purchases of mutual fund shares, have been made in all quarters dating back to the first quarter of 2008. In the statistics for the second quarter of 2010, owner positions of NOK 12 billion have been transferred to employees/households, of which NOK 5 billion was moved from banks and NOK 7 billion taken from financial auxiliaries.

 

Nominee - ownership is where parties other than the actual owners are registered in the investment companies’ registers. In this context, this means that banks and financial auxiliaries have been registered as owners on behalf of employees/households.

 

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