Data published by InvesteringsFondsBranchen, the Danish Investment Fund Association, suggest that investors in Danish equities got better returns over the past decade than if they had invested in China or Latin America.
The data is the latest in a series published by the Association, which are intended to show both the long term risk adjusted returns that investors in specific asset classes can enjoy over the longer term, as well as highlight the advantages that active management might bring.
The latest data looks at both equity and fixed income investments, and the returns suggest that funds which are more specialised in both equity and fixed income investments have done better over the long term, the Association said.
“There are great variations between top and bottom, especially in the area of equities. The worst equity investment is Japan equities, which have returned just 28% since December 2004, as Japan has struggled to get its economy going. At the other end are equity funds focused on, for example, China, Latin America and Denmark. They are fighting for first place, with return of about 200%, but Denmark has managed to do slightly better than the other two. Funds with Danish equities have gained no less than 220%. That equates to an annual gain of over 11% on average, and means also that an investment of DKK100 has grown to DKK302.”
“The typical Danish bond fund has given investors a cumulative return of 44% over the past 10 years. The best funds with foreign bonds have gained 84%,” the Association added.
(Chart source: Danish Investment Fund Association)