– It has gone very well, then. And that is perhaps a little because I have dared to take a high risk on the funds I have chosen, says Malin Natvig. Summary of the case • 94% of Norwegians’ savings in mutual funds were sent out of the country in the first half of the year, according to figures prepared by the Verdipapirfondenes forening for news.• This development may have contributed to the weakening of the Norwegian krone• It has been a trend over many years that Norwegians save more abroad, and this trend has intensified.• Norwegian savings are exchanged for other currencies, mainly US dollars, when they are invested in global funds.• Economists believe that this development may have contributed to the weakening of the krone .• According to DNB markets, foreigners have net sold Norwegian shares in the last couple of years, while at the same time they have net bought bonds for a larger amount in the same period. The estate agent on Økern, like 1.7 million other Norwegians, regularly saves in mutual funds – and became interested in shares during the pandemic. – I quickly realized that it became very all-consuming and took a lot of time. So then I got a tip that I could start saving in funds instead, she says. Malin follows the price development of his global fund. The fund value increases when the krone exchange rate weakens against the currencies to which the fund is exposed. Photo: Anders Eidesvik / news Record savings in mutual funds in the first half of the year Not even during the pandemic year 2021 did Norwegian households save as much in mutual funds as so far this year. – Per tip, it is just under NOK 4,000 that every Norwegian has invested in mutual funds so far this year, says Christian Henriksen, who is director of the Verdipapirfondenes forening (Vff). – Savings are increasingly taking place in international mutual funds, says Christian Henriksen in Vff. He has analyzed the development for news. Photo: Johan B. Sættem / news news has asked Vff to find out where the 21.2 billion in new mutual fund savings has gone. It has been a trend over many years for Norwegians to save more abroad. The trend has now strengthened, the figures show. – The vast majority, 94% of these funds are now placed in international equity funds. Mainly in global funds, which own shares all over the world, says Christian Henriksen. The Norwegian krone has weakened by around 5 per cent against the US dollar since the New Year. Photo: NTB On the way to Norwegian savings being invested in global funds, they are exchanged for other currencies. Mostly American dollars. – To buy shares in foreign funds, you have to exchange Norwegian kroner for foreign currency, the most common being US dollars, says Olav Chen, who is a manager at Storebrand. Photo: ISMAIL BURAK AKKAN / news – May have contributed to the weakening of the krone Portfolio manager Olav Chen at Storebrand believes, like other economists, that the development may have contributed to the weakening of the krone. – In a way, this is capital flight. And that means that it puts further pressure on the krone in a period where the krone is already weak, he says. Magne Østnor, currency strategist at DNB Markets. Photo: Johan B. Sættem Currency strategist Magne Østnor in DNB markets is concerned with the same issue when it comes to household savings, in his morning report on currency, interest rates and macro on Tuesday 30 July: “An increasingly large proportion of these savings are placed in foreign assets, and the part that is not currency hedged will contribute to the krone’s weakening,” writes the currency strategist. DNB’s analysis shows that while foreigners have net sold Norwegian shares in the last couple of years, they have also net bought bonds for a total amount that is greater, in the same period. “Differences in how these investments are currency hedged mean that the krone exchange rates will be different. The net has probably been a contribution to a weaker krone,” he writes. – It started during the corona when I started investing a little in shares. Now I have savings agreements in pension funds and in mutual funds, says Photo: Anders Eidesvik / news Back on Økern, Malin Natvik is aware that the value of the funds both goes up and down. – When I was dealing with shares, I checked way too much, and it just became all-consuming. So I’ve just decided to go in and check every now and then, she says. Published 01.08.2024, at 05.21
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Record savings in mutual funds are sent abroad – news Norway – Overview of news from different parts of the country
