The financial instability strikes the funds but with different force depending on the investment area

The striking slide in prices on the equity markets in October does indeed affect the funds' performance. Health care equities got through the month lightly with a minus of just 2 per cent in the typical fund.

Eastern European equities and Latin American equities had fall in prices close to 25 per cent in the typical fund. These funds have been the best performing in the long run but in October they had the greatest decline.

Private investors sold fund shares of DKK 9bn. in October

During October, approximately 3,000 investors decided to leave the Danish fund groups. At the end of the month approximately 858,000 Danes had savings through a fund.

The Federation of Danish Investment Associations' statistics show that quite a few private investors reduced their investments during October as there were redemptions of approximately DKK 9bn. in retail funds. Foreign investors sold for almost DKK 1bn.

However institutional investors acted differently and bought new fund shares of approximately DKK 1bn. in October.

The industry's AUM fell from DKK 781bn. to 693bn. in the last month. With this, savings through the funds are at the same level as was seen in October 2005.