Balance sheets of Danish investment funds point to more risk taking

Balance sheets of Danish investment funds (“Investment Associations”) show that local investors have been shifting their profile towards taking on more risk, according to statistics published by the country’s central bank.

Danmarks Nationalbank said the numbers showed that retail investors have been selling shares in assets considered low risk, and buying slightly more medium and high risk assets over the past three quarters.

The bulk of the reduction in exposure to low risk is linked to Investment Associations focused on Danish bonds, where yields have been falling.

The bank said that the proportion of exposure to low risk assets dropped 6% to 38%, while the exposure to medium or high risk funds increased by 3% respectively to 33% and 29%.

It means the proportion of investor exposure to high risk has reached the same level last seen in August 2011, before investors sold out heavily from equity.

 

Assets by fund type
DKK bn
Equity funds
Bond funds
Balanced funds
Hedge funds
Total
House holds
Insurance and Pension
House holds
Insurance and Pension
Hous eholds
Insurance and Pension
House holds
Insurance and Pension
All sectors
Beholdning ultimo
Feb 2012
103.7
204.0
184.0
492.8
25.8
16.9
0.9
1.2
1,363.0
Mar 2012
103.1
206.9
182.6
490.6
26.4
18.5
0.9
1.3
1,361.8
Apr 2012
101.9
198.7
187.4
493.8
27.1
17.4
1.0
1.3
1,375.2
May 2012
98.6
185.8
187.8
508.4
27.8
16.7
1.0
1.3
1,371.6
Jun 2012
102.0
191.4
187.3
502.5
28.5
18.4
1.0
1.3
1,378.8

(Source: Danmarks Nationalbank)

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