• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      event logo
      Sustainable Investment Festival 2021

      The Sustainable Investment Festival will run online from 22-25 June and will include thought-provoking presentations from renowned keynote speakers, innovative breakout events and sessions specifically tailored to meet the information needs of fund selectors, financial advisers, pension consultants, trustees and scheme managers.

      • Date: 22 Jun 2021
      • Online, Online
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Equities

Danish investors continue to buy more foreign securities

Danish investors continue to buy more foreign securities
  • Jonathan Boyd
  • Jonathan Boyd
  • @jonathanboyd
  • 21 June 2019
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Data from Finance Denmark suggests that Danish retail investors are continuing to shift away from a domestic bias in their equity and fixed income holdings, with a trend begun in the past five years to increase foreign exposure looking like it will continue.

Globally, the 'home bias' is seen as a long term challenge. But, argues Finance Denmark, most retail investors can achieve a better balance between return and risk if a larger share of their wealth is placed in foreign securities.

Related articles

  • Danish flows head for foreign bonds - data
  • Danish funds taking European market share
  • Flows to passive rising in Denmark
  • Danish fund industry welcomes new tax law

Its data suggests that in the 2014-18 period, local retail investors have been net buyers of investment funds, but the ratio of net buying of foreign equities through funds has been some 10x the amount bought in local equity, some DKK76bn versus DKK7bn (€10.2bn vs €937m).

The first five months of 2019 have seen Danish investors become net sellers of Danish equity funds (DKK-1.3bn), while remaining net buyers of foreign equity funds (DKK4bn).

Birgitte Søgaard Holm, head of Investments & Savings at Finance Denmark, said: "The share of Danish retail investors' wealth that is placed in investment funds is becoming increasingly internationally orientated. This offers clear benefits in regards to spreading risk, and we believe that this development will continue in future, as more and more see the advantages of looking out across the world."

However, Finance Denmark also notes that it is not an even approach to different parts of the international equity spectrum: funds with a broader global investment objective have been more successful than those with more a more specialised focus, such as emerging markets or North America.

Additionally, over the 2014-18 period, some DKK80bn (€10.7bn) was invested in balanced funds, which typically are mandated to invest in foreign securities, both equities and bonds. This trend has also been continuing over the first five months of this year.

On the bond side, the trend has up until 2018 been the reverse, with investments focused on Danish bonds. This trend has reversed in the firest five months of 2019, as net sales of foreign bond funds hit some DKK8.7bn (€1.16bn).

 

 

 

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Equities
  • Finance Denmark
  • Denmark
  • Global equities
  • Nordics
  • Nordic

More on Equities

T. Rowe Price opens investment research office in Shanghai

  • Equities
  • 02 March 2021
Comment: Can equities tolerate higher bond yields?

  • Comment
  • 26 February 2021
Comment: Navigating equity markets in the year ahead

  • Comment
  • 21 January 2021
M&G taps Value Partners for £500m Chinese equities mandate

  • Equities
  • 16 December 2020
Global equities tumble on covid-19 fears and US jitters

  • Equities
  • 27 October 2020
Back to Top

Most read

HSBC appoints CEO for the Middle East region
HSBC appoints CEO for the Middle East region
People moves: Phoenix Group, Franklin Templeton, TMF Group, AJ Bell, Arete, Just Group
People moves: Phoenix Group, Franklin Templeton, TMF Group, AJ Bell, Arete, Just Group
Nordic Fund Selector of the Year 2021 shortlist announced
Nordic Fund Selector of the Year 2021 shortlist announced
UK Budget: Sunak freezes lifetime allowance for pensions contributions
UK Budget: Sunak freezes lifetime allowance for pensions contributions
Europe's wealth mangers increasingly focusing on Bitcoin: survey
Europe's wealth mangers increasingly focusing on Bitcoin: survey
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading