To be able to offer its customers attractive and competitive fund products, Danske Invest monitors and assesses the performance of the portfolio managers of all the funds managed by it on an ongoing basis. As result, we have decided to change the portfolio manager of the Danske Invest North America Equity Fund and revise its investment strategy.
We believe that these changes will allow the fund to offer greater potential for generating competitive return after costs.
How will the investment strategy change?
Until now the fund portfolio has been managed by Wellington Management, whose investment policy is based on conventional active stock picking. However, the US market is one of the most efficient and closely analysed stock markets in the world. As a result, it is difficult for a portfolio manager pursuing an investment strategy that relies on conventional active stock picking to generate excess returns relative to overall market developments.
As of now, responsibility for management of the portfolio will be assumed by Danske Bank Asset Management. While the fund will continue to pursue an active investment strategy, future portfolio management will be based on Danske Bank Asset Management’s quantitative Risk Premia Concentrated strategy instead of conventional stock picking. The new strategy will employ statistical methods to focus on five pre-determined variables (valuation, momentum, quality, dividend and volatility) to select typically 70–100 companies in the investment portfolio.
What will this mean for investors?
The new, more efficient investment strategy will reduce the fund’s costs, which will result in a marked decrease in the management fee. In future, the management fee will be 0.60% instead of the previous 1.50%. The investment policy described in the key investor information document has been updated to reflect the revised strategy. As the fund will continue to invest in North American stocks, its name and rules will remain unchanged.
|Management fee up to
19 December 2017
as of 20 December 2017
North America Equity K
North America Equity T
For more information on the Danske Invest North America Equity Fund, see the key information document, fund price list, fund rules and fund prospectus.
Danske Invest Fund Management Ltd