New names for two alternatives funds
Danske Invest's alternative funds have standardised their names. In future, Defensive will become Alternatives - Global Private Credit, and Offensive will become Alternatives - Global Private Equity.
Danske Invest SICAV – SIF Alternatives – Defensive changes its name to Danske Invest SICAV – SIF Alternatives – Global Private Credit, and Danske Invest SICAV – SIF Alternatives – Offensive changes its name to Danske Invest SICAV – SIF Alternatives – Global Private Equity. This will take place on 28 June 2024. The change of name also includes a change of the investment strategies used in the two funds.
The funds were originally intended for investment in a wide variety of asset classes in the area of alternative investments. For strategic reasons, the focus of the funds will change so the investment scope is adapted to increase the focus on the asset classes of ‘private credit’ and ‘private equity’, respectively, and also include investment in private market funds that are exposed to underlying portfolio companies, or via co-investments with private market funds in a single portfolio company.
The proposed changes will not affect the risk profile or risk management of the funds. The leverage also remains unchanged.
What do the changes mean for me as an investor?
In short, the changes in Danske Invest’s two alternative funds mean the following for you as an investor:
- A more focused investment strategy in both funds
- Increased focus on co-investments
- And from 1 October 2024, a performance fee is charged on co-investments of secondary investments (which you can read more about below)
Be aware of the risk
There are always risks associated with investment. Investment in alternative funds may entail different types of risks depending on the type of fund in which you choose to invest.
In addition to the risk of market turbulence and price declines in the financial markets, alternative investments also entail risks connected with, for example, the use of leverage and liquidity risk, as alternative investments are typically much less liquid than traditional listed shares and bonds.
Danske Invest’s alternative funds
Danske Invest Alternatives – Private Equity and Danske Invest Alternatives Private Credit both belong to the category of alternative investments, which is a term for investments that fall outside traditional listed shares and bonds. Examples of alternative investments are hedge funds and properties.
Alternative investments such as private equity and private credit can contribute to diversifying risk and increasing the risk-adjusted return – i.e. provide a better return-to-risk ratio – in a well-diversified portfolio of investments.
Danske Invest SICAV-SIF Alternatives – Global Private Equity
- Provides access to a portfolio of alternative investments, primarily within private equity – i.e. investments in shares in unlisted companies. Private equity can generally open up a new world of investment options, because even though listed companies often get most of the attention, the vast majority of companies are unlisted.
- The fund’s private equity investments are mainly focused on Europe and North America.
- The fund invests in private equity via international private equity funds as well as through so-called co-investments in carefully selected individual companies.
- The fund provides access to investments that are normally reserved for institutional investors
- For the long-term investor – we recommend that investors in the fund have a time horizon of at least seven years
- • The investor must meet special requirements to gain access to the fund. This means that you must invest a minimum amount and that you sign to acknowledge that you are aware of the relevant risks connected with the investment, including that there is no daily option to enter and exit the fund.
- There is a minimum investment requirement of EUR 10,000.
- You can only invest in Danske Invest Alternatives – Global Private Equity if you are a Danske Bank customer and after a consultation with your investment adviser.
- Danske Invest Global Private Equity is managed by Danske Bank Asset Management, where Mikael Deigaard is Lead Portfolio Manager for the fund and Christian Boll is Senior Portfolio Manager. In the ongoing management of the fund, they draw on a large team of private equity portfolio managers in Danske Bank Asset Management.
Danske Invest SICAV-SIF Alternatives – Global Private Credit
- Provides access to a portfolio of alternative investments in primarily private credit – i.e. unlisted loans to businesses, consumers etc.
- The fund invests in private credit via international private credit funds and partly via so-called co-investments in carefully selected loans to individual companies or selected loan portfolios.
- In recent years, private credit has been a rapidly growing asset class, which today forms part of the portfolio of many large institutional investors.
- The fund provides access to investments that are normally reserved for institutional customers
- For the long-term investor – we recommend that investors in the fund have a time horizon of at least seven years
- The investor must meet special requirements to gain access to the fund. This means that you must invest a minimum amount and that you sign to acknowledge that you are aware of the relevant risks connected with the investment, including that there is no daily option to enter and exit the fund
- There is a minimum investment requirement of EUR 10,000.
- Danske Invest Global Private Credit is managed by Danske Bank Asset Management, where Marjo Koivisto is Lead Portfolio Manager for the fund and Lasse Lassen is Senior Portfolio Manager. In the ongoing management of the fund, they draw on a large team of private credit portfolio managers in Danske Bank Asset Management.
Change in performance fee from 1 October 2024
A performance-based cost – a so-called performance fee – is paid in the underlying funds in which Danske Invest Alternatives – Global Private Credit and Danske Invest Alternatives – Global Private Equity invest if they meet the agreed return targets.
From 1 October 2024, a performance fee will also be charged in the two funds. The performance fee is charged solely on the funds’ co-investments and secondary investments (i.e. purchases of existing investments in the secondary market) and not on the fund’s investments in primary funds (i.e. investments in the initial offering of the funds).
For Danske Invest Alternatives – Global Private Credit, the performance fee will be charged for each individual investment and will amount to 10 per cent of the return, provided that the annualised return exceeds 5 per cent for investments categorised as senior capital and 8 per cent for investments categorised as junior capital, respectively.
For Danske Invest Alternatives – Global Private Equity, the performance fee will be charged for each individual investment and will amount to 10 per cent of the return, provided that the annualised return exceeds 8 per cent.
Please note that if the funds have losses on co-investments or secondary investments, this loss will be offset in the calculation of the performance fee on other investments.
Any performance fee will be paid by Danske Invest Alternatives – Global Private Credit or Danske Invest Alternatives – Global Private Equity to the fund’s manager, Danske Bank Asset Management, respectively, and will thus reduce the return for investors.
Read more about the criteria for calculation of the performance fee in the prospectus for Danske Invest Alternatives – Global Private Credit and Danske Invest Alternatives – Global Private Equity, respectively.
If you invest in one of the two funds and do not want to transition to the new model, you can exit the fund at no cost until 30 June 2024. All customers have received information about the change from Danske Bank.
This publication has been prepared as marketing communications and does not constitute investment advice.
Information on historical performance information is not indicative of future performance or investment returns, that can be negative.
Please consult with your professional advisors about the legal, tax, financial or other matters relevant to the suitability and appropriateness of an investment to ensure that you understand its risks.
Please refer to the prospectus and the Key Information Document before making any final investment decision. A summary of investor rights can be obtained in English as well as more information on the sustainability aspects of the fund here: Danske Invest SICAV - SIF Alternatives - Global Private Credit Class C p - Facts and here: Danske Invest SICAV - SIF Alternatives - Global Private Equity Class C p - Facts The decision to invest in the fund should consider all of the environmental and/or social characteristics of the fund(s) as described in the prospectus.
Danske Invest Management A/S may decide to terminate the arrangements made for the marketing of its funds.
This publication has been prepared as marketing communications and does not constitute investment advice.
Information on historical performance information is not indicative of future performance or investment returns, that can be negative.
Please consult with your professional advisors about the legal, tax, financial or other matters relevant to the suitability and appropriateness of an investment to ensure that you understand its risks.
Please refer to the prospectus and the Key Information Document before making any final investment decision. A summary of investor rights can be obtained in English as well as more information on the sustainability aspects of the fund here: Danske Invest SICAV - SIF Alternatives - Global Private Credit Class C p - Facts and here: Danske Invest SICAV - SIF Alternatives - Global Private Equity Class C p - Facts The decision to invest in the fund should consider all of the environmental and/or social characteristics of the fund(s) as described in the prospectus.
Danske Invest Management A/S may decide to terminate the arrangements made for the marketing of its funds.
