Norwegian Retail Investors Maintain Strong Mutual Fund Investments Despite Market Volatility

Norwegian retail investors have shown remarkable resilience, continuing to pour significant funds into mutual investments this year. Despite the market turbulence, particularly in early August, retail savers have collectively invested NOK 34.1 billion (EUR 2.88 billion) in mutual funds, marking a 38% increase in assets under management (AUM) from this segment.

July saw another surge in investments, with Norwegian retail investors contributing a net NOK 5.9 billion (EUR 499 million) to mutual funds. This follows a robust first half of the year, during which a record NOK 25.5 billion (EUR 2.16 billion) was funneled into equity funds, with an additional NOK 4.3 billion (EUR 364 million) added in July alone.

Christian Henriksen, a director at the Norwegian Fund Association (Verdipapirfondenes Forening, VFF), expressed optimism about the continued enthusiasm for mutual fund savings, even during the typically slower summer months. “It’s encouraging to see that Norwegian retail customers are committed to their mutual fund investments, even during the holiday season,” Henriksen stated in a press release.

The VFF anticipates that this trend will persist despite recent market fluctuations

. Henriksen attributed this resilience to the growing popularity of fixed monthly savings plans among Norwegian investors, which help maintain a steady flow of investments regardless of market conditions. “The trends observed so far this year suggest that retail savers understand the benefits of consistent, fixed monthly investments. We expect this approach to continue, even amidst the market’s ups and downs after summer,” he added.

The total net inflow into the Norwegian fund market reached NOK 36.5 billion (EUR 3 billion) for the month. However, it's essential to note that approximately half of this inflow was attributed to a technical adjustment. The asset manager Pareto's discretionary mandate was included in the mutual fund statistics for the first time, significantly boosting reported inflows. Henriksen clarified that this inflow is not new capital but rather a reallocation of existing funds managed under a different mandate within the Pareto group.

Excluding this technicality, the leading asset managers in terms of net inflows during July were DNB Asset Management, Nordea, and KLP Kapitalforvaltning. As a result of these continued investments, the total assets under management in Norwegian mutual funds now stand at NOK 2,316 billion (EUR 196 billion), reflecting a 17.4% increase, or NOK 344 billion (EUR 29.1 billion), so far this year.