Traditional Danish Bonds
We believe that it is possible to create a long-term excess return on Danish bonds through active management where the essential feature is to select the right bonds and segments. The strategy mainly seeks to generate an excess return via segment and security selection and, accordingly, to a minor degree through active call on the interest rate development.
The strategy aims to create an ongoing excess return of 50 bps measured relative to 50% Stat CM2 and 50% Realkredit CM2.
In-house developed quantitative models make up a substantial basis for the investment process as the in-house developed models are essential to the risk management and portfolio decisions. Moreover, a systematic due diligence of bond segments and individual securities is a central part of the value creation.