Foreign investors boosting Danish AUM growth
Domestic funds attracting more foreign investors are growing their AUM faster than other domestic peers according to figures published by the Danish Investment Fund Association IFB.
Danish investment funds have grown their assets by some 10%since the start of the year, but those drawing in more foreign investors have grown assets by some 17%.
CEO Jens Jørgen Holm Møller said: “The growth is good in mind of the tax rules that place many boulders in out path when we wish to export Danish investment funds. The gain also tells us something about the great potential, which the industry is keen to realise, when politicians have simplified the tax rules. Today the rules act as a brake. We urge politicians to remove their foot from the brake after the elections. For that would provide growth and employment here in Denmark.”
Data from IFB suggests investors put a further net DKK7.1bn into investment funds through May. This was broadly spread across equity, bond and balanced funds. Most interest was shown in bond funds, particularly those with exposure to foreign bonds.
“The statistics tell me that most Danes are looking to buy more broadly when they invest. This is good, when we know that an investment in both equities and bonds gives the best spread of risk,” Jens Jørgen Holm Møller added.
In geographic terms, funds invested in North America and Japan did best in May. Japanese equity funds offered a return of 3-4% over the month, in contrast to Latin American equities, where the average fund lost some 5%.
Danish bond funds also offered negative returns, as bond prices fell and yields rose.