Majority of Danish bond investments go via Investment Associations
IFR, the Federation of Danish Investment Associations, has reported that some 61% of retail bond investments in the country flow via these Danish funds, according to figures published by the country’s central bank.
IFR cites data from Nationalbanken, the central bank, which has analysed what type of bonds retail investors are buying in Denmark, and how they are buying them.
Since December 2011, purchases of foreign bonds via Investment Associations were valued at about DKK23bn. By contrast during the same period, direct exposure to Danish bonds have fallen by some DKK40bn, IFR said. Danes have also reduced their exposure to Danish bonds via Investment Associations.
The changes mean that for every DKK10 that has been invested in both Danish and foreign bonds, more than DKK6 is working via an Investment Association – a type of locally listed fund.