Danske Invest scoops best new FI hedge fund in Europe award

The hedge fund Danske Invest SICAV – SIF Fixed Income Global Value distinguished itself on Tuesday when the HFM European Emerging Manager Awards 2019 were presented in London.

The hedge fund, which is run by Danske Bank Asset Management, scooped the award for best new hedge fund in Europe in the category ‘Fixed Income: Over $100m’. The fund was launched in summer 2018 and the award culminates close to one and a half years of solid returns and a large inflow of capital from both private and institutional investors. The fund recently passed the EUR 550 million-mark in assets under management.

While Danske Bank Asset Management has many years’ experience with Nordic and European fixed income hedge funds, Danske Invest SICAV – SIF Fixed Income Global Value is the first Danske Invest fixed income hedge fund with a more global focus.

“The award is a fantastic recognition that our methods and strategies also work in a global context,” says Michael Petry, who is head of hedge funds at Danske Bank Asset Management.

How the fund invests

The fund combines long and short investments in global fixed income and bond markets, which means the fund can invest in both rising and falling prices. This presents the opportunity for a positive return, regardless of whether yields and interest rates rise or fall, though naturally the fund can also incur a loss. However, the fund continually invests in a number of different strategies that do not necessarily move in tandem, which reduces the risk of all strategies producing a loss at the same time.

Whereas the return from some of the fund’s strategies depends on the overall development in yields in individual countries, the return from other strategies depends solely on how particular fixed income securities move in relation to each other.

“Investment ideas for the fund arise from, among other things, a continuous screening of yield curves and spreads, with portfolio managers drawing on historical data to spot whether securities look expensive or cheap and thus present potential investment opportunities,” explains the head of hedge funds Michael Petry.

The portfolio team managing the fund currently comprises chief portfolio manager Anders Møller Lumholtz and senior portfolio manager Edi Zulfaj. From 1 December the team will be strengthened by the appointment of Anders Fischer from PFA pension.

Read more: You can find the factsheet, prospectus and key investor information for the fund at danskeinvest.lu.

DISCLAIMER: The contents of this publication are for information purposes only and do not constitute investment advice. You should always be aware that historical returns and forecasts on future price movements are not an indication of future return, which can be negative. Always consult with professional advisors on legal, tax, financial and other matters that may be relevant for assessing the suitability and appropriateness of an investment.

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