Danske Invest has jettisoned Henrik Husted Knudsen from its Europe-focused equity fund and reworked its remit after an ‘unsatisfactory’ period of performance, Citywire Selector has learned.
Formerly Citywire AAA-rated Knudsen stood down from the Luxembourg-domiciled Danske Invest Europe Focus fund in April, with colleague Andreas Hornbak installed as sole lead.
Hornbak will now oversee a broader remit, which will allow the fund to invest in a wider area of European equities.
Knudsen had been the lead on the fund since January 2001 and previously produced strong outperformance. However, on a three-year absolute basis, the fund has slipped into the bottom quartile of the 869-strong European equity sector.
In a statement to investors, Danske Invest said: ‘Recently, Europe Focus has not met our target for a satisfactory return.
‘Danske Invest has therefore decided to adjust its strategy so that going forward the fund will have a broader profile and thus can invest in more European companies. The profile will, however, remain within the boundaries in the funds’ prospectuses.’
The company added it would not refrain from acting decisively where it feels competitive returns are not being delivered for its investors. In addition, the company has announced it will reduce the costs of the fund as part of the strategy adjustment.
It is understood Knudsen remains with the firm and continues to be a named manager on several Europe-focused funds available for Danish investors.
On a three-year basis, the Danske Invest Europe Focus fund returned 3.8% in euro terms against an average return of 18.2% in the Equity – Europe sector.