Improved opportunities for funds with alternative investments
We are expanding the frameworks of the two funds Danske Invest SICAV-SIF Alternatives - Defensive and Danske Invest SICAV-SIF Alternatives - Offensive, which invest in alternative assets.
At Danske Invest we work to constantly improve our funds so we can deliver attractive returns to our investors.
We have therefore made some changes to the two funds Danske Invest SICAV-SIF Alternatives – Defensive and Danske Invest SICAV-SIF Alternatives - Offensive, which invest in alternative assets, such as property and infrastructure. The main changes are:
- To improve the investment opportunities in Danske Invest SICAV-SIF Alternatives – Defensive, the fund will in future also be able to invest in private equity, which is shareholdings in companies that are not listed on a stock exchange. Any investments in private equity will be made through funds. (Danske Invest SICAV-SIF Alternatives – Offensive already invests in private equity).
- To improve the investment opportunities in Danske Invest SICAV-SIF Alternatives - Offensive, the fund will in future also be able to invest in alternative credits, which are loans issued by banks to companies or households. Any investments in alternative credits will be through funds. (Danske Invest SICAV-SIF Alternatives - Defensive already invests in alternative credits).
Expanding the investment frameworks will allow the two funds to increase risk diversification across their investments and achieve a higher risk-adjusted return.
New options for investing surplus capital
The funds will also expand their options for investing surplus capital that is not yet placed in the alternative asset classes the funds are focused on (for example, because the funds are waiting for the right investment opportunities to present themselves, or because capital in certain alternative investments is deposited over an extended period). To increase fund flexibility and the opportunities for return, surplus capital can in future be placed in a broader range of bonds and other money market instruments of high credit quality and also in liquid funds, including hedge funds.
The option of placing surplus capital in assets that are not cash or cash-equivalents may result in the funds being leveraged, so we are therefore introducing a slight increase in the limits for investment leverage in both Danske Invest SICAV-SIF Alternatives - Defensive and Danske Invest SICAV-SIF Alternatives - Offensive. However, surplus capital will only be invested in assets with a lower risk than the alternative asset classes the funds focus on.
When the changes come into force
The above describes the most important changes to the funds’ investments.
Read more in the notice to shareholders
The changes are expected to apply from 28 October 2019.
