Decline in funds

In 2022, for households invested a modest kr. 2.4 billion in funds while, by comparison, they invested kr. 69 billion in 2020 and 2021 combined. The smaller purchase takes place even though record dividends were paid to households for kr. 24 billion in 2022 for the investment year 2021.

In 2022, both equity funds, mixed funds and bond funds, the returns were negative. The return on equity funds was the lowest with a return of -14.4 per cent followed by mixed funds with -13 per cent and bond funds with -12.1 per cent.

Small difference in active and passive funds’ returns

At the end of December, approximately one third of the household’s assets in funds is placed in equity funds, of which equity funds that invest in global shares make up the most (three quarters). In these global equity funds, 83 per cent of the assets are managed actively, while the rest is managed passively.

The return (before costs) in 2022 for actively managed global equity funds was a total of -13 per cent, while it was -13.5 per cent in passively managed. If one look at the total return since January 2020, they have been close to the same – namely 16.3 per cent under active management and 16.2 per cent under passive management.

Actively managed investment funds aim to yield a higher return than their benchmark, while the objective of passively managed funds is to track a benchmark. The costs of the passive strategy will typically be lower, since no portfolio manager continuously composes the investments actively.

Fewer equity purchases outside of funds as well

In addition to the fact that households have purchased fewer investment certificates, they have also purchased fewer shares directly (i.e. without the use of funds) compared to earlier. In 2022, households sold listed shares for around kr. 1 billion, while in 2021 they purchased for approximately kr. 10 billion.