Danish equity funds saw returns average 5.3% in December alone as both equity and fixed income asset classes provided local investors with positive returns, according to the Danish Investment Fund Association (IFB).
Key gainers on the local stock market included shipping company A.P. Møller-Mærsk and energy company Dong. However, it was Eastern Europe that provided the best returns of the month, with equity funds invested there averaging returns of 9.7%. Broader European and Nordic equity funds returned 5% and 5.3% respectively, while North American equity funds returned 2.4%.
But, emerging markets and Far East Asian funds saw marginal gains or even losses through the month. That said, over the full year, sectors such as Latin America or emerging markets fared much better than Danish or Nordic sector funds. The average return for Europe equity funds over the period was just 0.3%.
The Fund Association also notes that there were positive returns from funds invested in fixed income asset classes including Danish sovereign and corporate bonds, but also emerging markets and non-investment grade. Over the full year it was the emerging markets bond funds that did best, averaging 9.3% returns – more than twice the average 4% return from funds invested in long-term Danish bonds.