Danske Asset Management launches new interest-rate hedge fund

By end of Q1 2018, Danske Asset Management hopes to offer existing and new clients an interest-rate hedge fund. European government bonds are to be the main area of interest.

Photo: Danica

Danske Bank Asset Management is seeing a surge in demand for absolute-return products. With all of its existing hedge funds now too large to take in more capital, the banking arm sees scope to launch a new fund focusing on a new area.

"We expect the product to be ready by the end of Q1 or the start of Q2 in 2018," says Michael Petry, head of hedge funds at Danske Asset Management, to AMWatch. He explains that the negative interest rates are one of several reasons why it makes more sense to establish a hedge fund rather than a traditional bond fund.
"We expect our new manager to position himself in the market so that, regardless of whether interest rates rise or fall, he can generate returns. In a traditional bond fund, you would typically lose money as interest rates rise," says Michael Petry.

Read the whole article

Get 14 days free access.
No credit card required.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

Norway has the fastest growing investment fund market in Europe

So far in 2021, Norway has experienced massive inflows to its investment fund markets, beating former records. The pandemic and different government initiatives have resulted in an increased savings rate. Data also show that market shares are shifting among Norwegian fund managers.

Further reading

Latest news


Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch