Looking at returns data for February, the Danish Investment Fund Association (IFB) says local fund investors have made returns of some 20% on average from global equity funds over the past year.
The strength of the dollar and emerging markets currencies encouraged returns from both equity and fixed income asset classes, although there remains some uncertainty around Europe because of the pending Dutch and French elections, IFB noted.
On a monthly basis, February alone saw returns from American equity funds average 5.3% in DKK terms, with the dollar up 1.6% through the month.
Far eastern equities returned 4.2%, while emerging markets added 4.3%. Closer to home, Danish equity funds averaged returns of 1.3%, while Nordic equity funds averaged 1.6%.
Returns from Danish bond funds averaged 1.5% over the month. Those focused on investment grade and non-investment grade securities returned 1.1%, while those focused on emerging markets bonds returned 2.2% – on average.
Over the past 12 months, IFB noted that there have been positive returns from all fund categories. For the estimated 491,00 Danish investors in global equity funds, who have invested an average of DKK263,000 (€35,379), the return over the past year has been around DKK45,000 (€6,000), IFB estimates.
In terms of dividends paid out to local investors by funds – due to local fiscal rules – IFB estimates total payments in 2017 thus far are around DKK21.7bn (€2.9bn).
Total assets held in funds by private investors rose by DKK4.2bn to DKK832bn by the end of February. Total industry assets rose by DKK32bn to DKK1.994trn (€268bn).