Copenhagen Stock Exchange: Portfolio Allocation Among Investors

In issue no. 29 of Focus the authors First Vice President John Madsen and Head of Fixed-Income Research Kåre Hahn Michelsen, Nykredit Markets, submit the results of a systematic survey prepared in cooperation with Greens Institute of Market Research.

The survey is conducted each quarter and describes the current and expected portfolio allocation by bond type, currency and equities among Danish investors at sector level. The investors taking part in the survey represent a total portfolio of DKK 444 billion, of which DKK 267 billion are invested in Danish bonds.

Among the main conclusions of the survey are:

• Yields are expected to drop at both the short and the long end of the curve
• The 2Y and 10Y yield spreads against Germany are expected to narrow
• The Danes are expected to vote "yes" in a euro referendum within end- 2005
• The investors will increase their share of Danish bonds and their portfolio of long-term bonds
• Commercial and mortgage banks are switching to long-term mortgage bonds
• The insurance and pension sectors are still expected to reduce their portfolio of shares and also show an increasing interest in Eastern European bonds.

See the webcast presentation (in Danish) of the results of the survey with the author Kåre Hahn Michelsen, and read the article 'Portfolio allocation among Danish investors' in Focus no. 29.

Focus no. 29 can be accessed by clicking here.