Norwegian bond funds scoop up cash in January

NorwayTwo newly launched bond funds from Den Norske Bank of Norway topped the list for European product inflows in January, according to new statistics.

The DNB AM Kort Obligasjon fund attracted net sales of €2.4 billion in the month and the DNB AM Lang Obligasjon fund attracted a net €2 billion, according to data provider Lipper. Both are aimed at institutions and invest in bonds denominated in Norwegian krone.

The inflows helped Den Norske Bank achieve net sales of €5.7 billion in January, more than any other fund group achieved in Europe that month, including the world's largest asset manager, BlackRock.

Because of the two funds' popularity, Norway had the greatest inflows into long-term funds of any single market in Europe, followed by France, Spain and Switzerland. Norway achieved €3.8 billion of inflows, France €2.9 billion, Spain €2 billion, while outflows in the UK totaled €0.8 billion, €0.7 billion for the Netherlands and €0.6 billion for Denmark.

Overall, the European funds industry achieved a net inflow of €23.7 billion in January, with much of the gain due to a net €24 billion flow into money market funds.

Lipper says that provisional February figures for Luxembourg- and Ireland-domiciled funds suggest that equity funds, with estimated net inflows of around €9.6 billion, will be the best selling products for February 2014.

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