Danish investors benefit from weak currency
The weakening of the Danish currency against other such as the dollar through May boosted investor returns, says The Federation of Danish Investment Associations (InvesteringsForeningsRådet).
Particular gains were seen from exposure to US and Far Eastern assets.
Private and institutional investors have about DKK100bn (€13.4bn) invested in US equities through the Investment Associations. The dollar gained more than 3% against the local currency through May, giving investors a similar increase in the value of their investments – or about DKK3bn.
“Danes have large investments in the US through the Investment Associations. A higher dollar means that US equities were among the best investments in May,” said Federation director Jens Jørgen Holm Møller.
Currency changes also boosted returns from Japanese equities, although European equity markets were unchanged through the month. Danish bonds were another good performing area, although here the prices were boosted by an increase in buyers.
The combination of additional new investments and improved returns from foreign assets denominated in other currencies saw total assets under management by the Federation’s members hit a new record of DKK1.019trn, a doubling since 2004.