Number of Danske Invest funds with negative return expectations adjusted
Danske Invest has in recent years decided to label those funds where investors should be particularly aware of low return expectations. The number of flagged funds has just been updated.
The low level of interest rates and yields in recent years across much of the bond market has made it difficult to see where return should stem from in the coming years. As a consequence of this, Danske Invest in December 2019 began to flag up those funds where the return potential is particularly affected by the low level of rates and yields. Our expectations are updated semi-annually and we have just concluded this process.
The labelling appears in the overview of funds as an exclamation mark in a small dark-blue circle and on the websites of the individual funds affected.
Speak to an advisor about your optionsFuture returns from the bond markets will depend on how interest rates and yields develop going forward. While return potential in the flagged funds is affected by the low interest rate environment, these funds may still be relevant for you as an investor. This may, for example, be as an element in a broad portfolio of various securities, or if you have a shorter investment horizon for your savings.
Whether you should include the flagged funds in your portfolio depends on several factors, including your other investments. Your interest rate expectations as well as your risk appetite and investment horizon also play an important role. As with other Danske Invest funds, we always recommend that you make your investment decisions in consultation with an advisor.
The updating is performed in accordance with the financial sector’s recommendations, which are based on figures from the Council for Return Expectations, an independent expert council set up by the two Danish financial industry organisations ‘Insurance & Pension Denmark’ and ‘Finance Denmark’.