Convergence

Our Convergence product invests in shares of companies benefitting from the structural convergence taking place in the region. The universe consist of stocks listed on stock exchanges primarily in Central and Eastern Europe, excluding Russia.

Danske Capital focuses on a convergence which has been under way for 50 years. The three waves of convergence in the region are Central Europe, the Baltic States, and the Trans Balkan.

Contact us

Any enquiries or questions in regard to the products can be directed to:

Henrik Schmidt
Head of Global Business Development

Strødamvej 46
DK-2100 Copenhagen Ø
Tel.: (+45) 45 13 96 66

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Product details

Danske Capital's investment process for Eastern European Equities consists of four steps:

Identification of investment universe,
Investment idea generation and convergence filters,
Stock selection,
Portfolio construction.

Our core investment universe comprises companies listed on the main markets of the Eastern European countries ex. Russia, which narrows down the universe from more than 7,000 to approx. 700 companies. Investment ideas are generated via our internal and external research networks, exploring convergence trends, visiting companies and a disciplined use of our selected convergence filters.

The stock selection process consists of 3 steps: idea generation, fundamental research and stock selection: Using our idea generation including company visits and the qualitative screening and using our convergence filters we identify companies from our investment universe that are well-positioned to capitalise on the convergence process. In the last step of the stock selection process, we identify the risk profile of the stock and assess how it will affect the overall portfolio characteristics. This includes the size of a position and its impact on portfolio diversification.