Best equity manager 8 years in a row

Morningstar’s Fund Awards for Danish mutual funds were presented on Thursday in Copenhagen. This year Danske Invest scooped two awards at the annual ceremony. Danske Invest was awarded the “best for equities” prize for the eighth year in a row and also lifted the new award “best for equities and bonds”. Both awards are given to the mutual fund that has earned investors the best long-term, risk-adjusted return in their respective category.

“Not only being recognised for the eighth year in a row as best for equities, but now also proving we are among the elite when it comes to bonds is pretty fantastic,” says Morten Rasten, Managing Director, Danske Invest Management. He is particularly pleased that the two awards acknowledge customers earn a competitive return at Danske Invest.

But how can Danske Invest be awarded best for equities eight years in a row and now also scoop the new award “best for equities and bonds”? Mostly it is about people and attracting and retaining those who are the very best in their area, believes Morten Rasten.

“When you reach a certain size, as Danske Invest has, you can attract people who are the very best in their field. It is the people that make the key difference,” he says.

Hand-picked investments
Investments in Danske Invest funds are hand-picked by staff in the Nordic countries and our global partners, and a new investment is not made until a detailed analysis shows it has great potential and also the capability to beat the general market.

“In the case of equity-based Danske Invest funds and funds focused on corporate bonds, we have a detailed knowledge of the company and its business model for all the investments we include in our actively managed funds. We thoroughly research the companies – both before we invest and then on an ongoing basis,” says Morten Rasten.

“Investments for our actively managed funds are not selected by machine, and nor do we sell an investment because the overall market is experiencing ups and downs. We invest long term and hold most of our investments for several years,” he adds.

Portfolio advisors regularly meet with management as part of the research conducted into each individual company included in Danske Invest’s funds. Naturally, management cannot say anything that has not been announced to the market, but you get a better sense of where the company is going when you sit face to face with the decision-makers, says Morten Rasten.

“We specifically require that our advisors spar and interact with the companies we invest in,” he says.

International advisors
Portfolio advisors also keep constantly up to date with conditions affecting the companies. That could include, for example, how scientific developments are influencing the US pharmaceutical sector, or the dynamics that might have an impact on the European car sector.

Local, on the ground knowledge of all the markets where Danske Invest has investments is also crucial. Danske Invest collaborates with a number of international advisors who generally handle research and investments in, for example, the emerging markets of Asia, Africa and Latin America.

Danske Invest has won the awards for generating long-term, risk-adjusted returns that outperform those of our competitors.

“Periods of market volatility are a fact of life when you invest long term, and there can be differences in how specific regional markets perform. When the overall market in Latin America, for instance, is falling, then a Danske Invest fund with Latin American equities will also usually fall,” says Morten Rasten, who adds:

“But we have a goal of delivering a competitive return, so if a Danske Invest fund does not live up to that goal we always re-evaluate the fund’s strategy.”