Alpha

The portfolio invests broadly in the European equity markets. The main characteristics for the product are:

All positions are included based upon a balanced mix of Delta, Quality and Valuation
Portfolio construction further optimizes between these three
Performance target 1,5-3% and tracking error 3-6%
Portfolio of 50-70 stocks
Position size is determined by conviction, risk contribution and relative exposure

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

Send an e-mail

Product details

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

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

The European equity universe comprises approx. 6,000 shares. By applying our minimum requirements to market cap and trading volume, Danske Capital reduces the number of shares to approx. 1,000. The qualitative element of our investment process is the screening for companies characterised by positive changes in internal or external factors (delta-factors) that will affect the future cash flows and the associated risk. The experience-based screening is supplemented by quantitative screenings that generate additional investment candidates. These screenings are focused on Valuation and Quality. The qualitative and quantitative screening processes further reduce the universe to 300 stocks.

Investment ideas are now subject to thourough fundamental analysis. If the stock still appears to be attractive, a portfolio weight is determined based upon risk characteristics as well as degree of conviction.