Mutual funds, quarterly figures, Q3 2011

From the end of the 2nd quarter to the end of the 3rd quarter of 2011, the total value of mutual funds’ capital decreased by 9.3 per cent to NOK 515.8 billion. The value of the equity funds’ shares declined by as much as 17.1 per cent. This is a consequence of the turmoil in the international financial markets and in the Norwegian stock exchange during recent months. More detailed information on the subject can be found on our website regarding Securities registered with the Norwegian Central Securities Depository.

The market value of the hybrid funds fell by 13.8 per cent, while the money market funds gained value by 4.2 per cent. The market value of the bond funds went slightly down by less than 1 per cent.

Investors sold bond funds and equity funds

There was a net sale of bond funds worth NOK 3.3 billion in the 3rd quarter, while a NOK 4.0 billion net purchase of money market funds was registered. In total, net sales of mutual funds ended at NOK 3.1 billion.

Foreign investors net sold most

Foreign investors net sold NOK 2.0 billion worth of mutual funds in the 3rd quarter of 2011. Most of the sales were in equity funds worth NOK 2.5 billion. However, they invested a total of NOK 0.5 billion in money market funds and bond funds.

Life insurance companies invested in money market funds and equity funds

The largest owners in the mutual funds market; life insurance companies, placed NOK 1.6 billion and NOK 1.0 billion in equity funds and money market funds respectively. Companies in this sector on the other hand sold bond fund shares worth NOK 2.0 billion. Therefore, their investment amounted to NOK 0.6 billion in total.

Households were hesitant in selling mutual funds’ shares

The household sector’s total net sales of mutual funds ended at NOK 1.5 billion during the 3rd quarter of 2011. Households net sold NOK 0.9 billion worth of equity funds, NOK 0.3 billion of hybrid funds and NOK 0.2 billion in money market funds. Net sales were not very high when taking into account the huge decline of a NOK 17.8 billion loss in value in the mutual funds’ capital during the 3rd quarter.

Ownership of life insurance companies increased

At the end of the 3rd quarter of 2011, life insurance companies’ share of the mutual funds increased to 36.5 per cent of the total compared to 34.9 per cent of the previous quarter. Households’ owner share was 23.1 per cent, which was lower than the 2nd quarter. Foreign investors’ owner share also decreased, from 14.0 to 12.7 per cent.