Alternative investment funds surge in Denmark

Institutional investors hunger for alternatives, and assets in infrastructure funds alone have increased by 1,000 percent in four years.

Photo: Ritzau Scanpix/Henning Bagger.

Institutional investors increasingly seek alternatives to equities and bonds, and AUM in alternative investment funds in Denmark has gone up by 71 percent in the past four years, reveals an article on the market development in investment funds by the Danish FSA.

"This development indicates an increased risk appetite among investors, the main portion of which is institutional. Assets in these funds are often unlisted and less liquid, making them less transparent in relation to valuation compared to other assets, including those with a daily price mechanism, such as listed assets," the FSA writes.

More than 90 percent of assets in alternative investment funds come from institutional investors, and the total assets of alternative funds have reached EUR 15.4bn in 2018.

Alternative investments cover strategies in real estate, private equity, hedging, and more, while especially the infrastructure asset category has seen a radical surge.

Infrastructure covers investments in roads, bridges, energy supply, and more, and between 2015 and 2018, these funds have increased by more than 1,000 percent from EUR 401.7m to EUR 4.6bn.

(This article was delivered by our associate media FinansWatch.)

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