Danske’s Emerging Markets Fund redeemed on a fast-track basis – linked to an ‘internal allocation change’


According to the October fund report, Danske Invest Emerging Equity Markets lost about two-thirds of its capital through net redemptions, or EUR 257 million, in October, and the size of the fund decreased to approximately EUR 136 million. In July, the size of the fund was approximately EUR 500 million.

The Danes according to a comment provided by the communications, “the change was related to an internal change in allocation from one product to another.” However, Danske did not elaborate.

Danske Invest Global Emerging Market, a fund managed by Danske in Denmark and investing in the same market, has grown by around EUR 60 million since the summer.

However, the fund managed in Finland has shrunk by approximately EUR 360 million. The fund’s portfolio manager has changed in August after the previous portfolio manager Ville Kivipelto transferred to manage the Finland fund. The Emerging Markets Fund is now responsible for portfolio management Antti Raappana.

Throughout its history, Danske Invest Emerging Equities Fund has returned close to the benchmark MSCI Emeging Markets. However, the latest 12-month return remains more than 10 percentage points on the index. According to Danske’s review, the index’s annual return was 17.2 per cent at the end of October and the fund’s only 6.8 per cent.

Many emerging market countries have great difficulty vaccinating their citizens. Therefore, the outlook for economic growth varies from country to country and some investors want to select their target markets more closely.

There have been problems, especially in Latin American countries. Also Nordean some funds have been redeemed from a similar fund investing in emerging markets. However, its return has remained close to the level of the benchmark.

In emerging markets, the strongest returns in recent months have been invested in funds investing in Central and Eastern Europe, with 12-month returns of 60-70 per cent.


Source: Arvopaperi by www.arvopaperi.fi.

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