Process

Step 1: Investment profile
Through meetings and discussions with the investor, Danske Capital obtains a thorough understanding of the investor's profile. This means that each Global Solution Portfolio is individually tailored to reflect the needs of the individual investor. In these discussions Danske Capital's account manager will ensure that maximum knowledge about the investment profile is documented in the organisation.

Step 2: Risk budget
The discussions with the investor regarding the investment profile lead to an agreement where the investor specifies the risk budget for the portfolio in question. We invest much effort in understanding the investor's specific risk and return expectations, and the risk budget may be tailored to meet the needs of the individual investor.

Danske Capital will discuss with the investor the desired risk and return profile for the mandate, but the investor ultimately decides the investment framework within which Danske Capital must operate.

Step 3: Optimization of the risk budget
A very important aspect of Danske Capital's Global Solution product is the dynamic investment process where allocation between the different asset classes ensures optimum utilisation of the risk budget.

The goal of this dynamic investment process is to optimize the portfolios' value over the longer term and achieve a higher return through diversification and timing of the investment decisions. It is important to emphasize that we will only be invested in asset classes that we believe will improve the absolute return potential of the combined portfolio.

Step 4: Portfolio construction
In the portfolio construction phase it is the dedicated portfolio managers of the Solution team who have responsibility for the specific client portfolios. On top of the daily discussions about optimization of the portfolios formal bi-weekly meetings are held between the solution strategy team and the Asset Allocation teams to discuss the need for adjustments. In the event of volatile markets, these meetings increase in frequency and may be held on a daily basis.