Danish equity funds outperformed Europe, US in January

Danish equity funds lost an average -3.5% through January as market volatility and evaporating investor confidence saw capital values fall – but the domestic asset class still outperformed funds focused on European or North American equities reports the Danish Investment Fund Association (IFB).

These latter two categories of funds shed -6% and -5.4% on average through the month, the IFB says – although negative returns from Kina and Far East Asia funds hit -8% to -10% it added.

The performances are based on figures from Danish listed investment funds – so called investment associations, which are the locally derived collective investment vehicle that is popular with Danish investors.

Fixed income funds invested in local bonds did somewhat better in January, as the yield from Danish government bonds fell; local funds invested in this asset class gained an adverage of 1.5% over the month. Funds invested in shorter term and other types of Danish bonds averaged returns of between 0.4% to 0.9%.

Funds invested in foreign investement grade bonds achieved an average return of 0.2%, while non investment grade investments helped funds in this category to an average monthly return of 0.4%, the same return seen in funds invested in emerging market debt.

That said, the net sales figures point to continued high levels of interest among Danish investors in equity holdings – some DKK4.5bn (€600m) was invested in equity on a net basis by Danish fund investors, but particularly in areas such as global and North American equity.

Together with market movements the month ended with total assets in the Danish funds industry of some DKK1.8trn (€241bn).


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