Danish equity outperformed in February
Investors looking to European equity classes in February should have been invested in Danish equities, according to data presented by the Danish Investment Fund Association (IFB).
It said that the average Danish equity fund returned 9% through the month, against those offering pan-European or Global exposure, which returned 6-7% in the same period.
However, Danish bonds fared less well, with the average fund invested in this asset class returning nothing over the period.
“Equity investors have had a good start to the year. In February the best equity fund offered two-digit returns. Just one fund with Turkish equities ended up with negative returns. Otherwise, it was pluses across the board,” said IFB chief executive Jens Jørgen Holm Møller.
He added that the general themes of economic and political optimism across Europe has been helped by lower interest rates.
Data suggests that Danish investors have redeemed a net DKK2bn (€286m) from bond funds in the first two months of the year.
“The sales could indicate that lower Danish interest rates are encouraging investors to move their money to funds with better prospects for returns. But the change is limited, and Danish bond funds continue to offer much to the typical investor. I would recommend investors talk to their advisers, should they be considering adjustments to portfolios now that rates on Danish bonds have fallen so low.”