Fixed Income

Investment Strategy

The subfund invests primarily in Danish government, and mortgage bonds, and secondarily in up to 5-year maturity European government bonds, European covered bonds, and corporate bonds with an absolute return target. Interest rate risk is hedged with futures on German government bonds, options or interest rate swaps. The sub fund uses leverage that typically will be in the range of four to eight, with a maximum of twelve. The strategy builds on identifying and exploiting exaggerated market movement, that can occur due to the lower risk limits being imposed on banks. The focus will predominately be on Nordic markets and issuers with high credit quality.

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Facts