Data published by the Danish Investment Fund Association (IFB) suggests 760,000 retail fund investors in the country enjoyed dividend payouts of DKK20.4bn (€2.7bn) in March-April, a rise of some DKK4bn against the same period last year – albeit most was reinvested.
The dividends reflect strong returns from equity funds in particular, as generated by so called Danish investment associations – the local type of fund, which is listed on the local stock market.
Jens Jørgen Holm Møller, chief executive of IFB, said: “The majority of dividends, about DKK12.6bn, were paid to investors in equity funds. This is linked to the fact that 2014 was a really good year for many stock markets. In contrast, dividends in the fixed income area were lower than the previous year.”
When investors receive their dividends, they can leave the money on their accounts, reinvest, or withdraw it. IFB’s figures suggest that many have chosen to reinvest. March saw some DKK14.7bn (€1.97bn) invested across all categories of investment associations. Many of the funds enable automatic reinvestment of any dividend pyaments.