At Danske Capital we offer our solution competencies to institutional investors. Solution mandates are tailormade to each investor and we offer both relative (to benchmark) mandates and absolute mandates to our clients.
We see an increasing demand from clients towards solution mandates with a focus on the individual risk, investment horizon and value creation. Risk determines return, especially market- and illiquidity risk, and on the long term there is a stable relationship between risk and return for each asset class.
Danske Capital's view is based on fundamental analysis of the global economy and historical risk and return characteristics of major asset classes. Solution mandates are based on Danske Capital's core investment competencies and philosophy, and the same type of DNA applies when we select our external partners.
Relative (to benchmark) mandates
Our relative mandates are based on the individual investor’s perception and requirements with respect to the a predefined strategic benchmark. Value is generated through dynamic allocation (under-, neutral- and overweight vs. the strategic benchmark) with focus on relative return.
The individual investor's risk limits are exploited throughout a business cycle with a tactical tilt. The object of the investment process is to optimize the portfolio's value over the long term and achieve a higher return through diversification and timing of the investment decisions with a focus on delivering better returns than the strategic benchmark.
Our absolute mandates are based on the individual investor’s perception and requirements with respect to risk and return. Value is generated through dynamic asset class allocation with focus on delivering an absolute return. We focus on maximizing the absolute return within the framework of the individual investors risk limits.