Data from Finance Denmark (Finans Danmark), the local financial sector trade association that entered a strategic agreement with the Danish Investment Association (Investeringsfondsbranchen, IFB) earlier this year, points to gains made by local bond funds as long term interest rates fell through the summer in reaction to market uncertainty sparked by issues such as geopolitical concerns around North Korea.
Both equities and bonds from emerging markets had a flat month, while European and American equities saw falls, FD said.
Danish and international interest rates fell through the month. Funds invested in short terma and Danish bonds gained 0.3% and 0.7% respectively, while funds invested in Danish long term bonds gained 1.2% through the month on average, denominated in DKK. The Danish bond funds outpaced international investment grade-focused funds, which gained 0.4%, while non investment grade funds typically returned 0% through the month.
Net flow data suggest that funds invested in Danish bonds were the most popular category over the period, adding some DKK2.1bn (€282m) on that basis. Balanced funds attracted DKK1.4bn (€188m) on a net basis.
The value of total industry assets of private investors rose DKK4.2bn (€564m) to DKK875bn (€117bn), while total industry assets overall gained DKK14.4bn (€1.9bn) to DKK2.046bn (€275bn).
IFB has previously estimated the number of Danes with shares in investment funds at 832,000.