HP Fondsmaeglerselskab A/S offers investors both unleveraged and leveraged bond portfolios. In both cases the investment universe
is Danish government and Danish mortgage bonds denominated in DKK.
Unleveraged Portfolio Management
Unleveraged portfolio management for large individual mandates, HP Invest or HP Wholesale. HP Fonds pursues a relative value strategy and our objective is to achieve a return 1% above the return on a comparable benchmark with same risk profile.
Leveraged Portfolio Management
Leveraged portfolio management is conducted for HP Hedge and aimed exclusively at professional investors. HP Fonds pursues a relative value strategy using bond futures to reduce the interest rate risk and our objective is to achieve a return of Cibor 1 plus 5%. HP Hedge can be leveraged up to eleven times, but usually leverage is between 4-7 times.
Individual mandates are tailored to high net worth individuals and institutions with special needs. In addition to the individual portfolio management contract, a tripartite agreement is made between the client, the clients’ bank and HP Fonds. This gives HP Fonds a trading proxy to buy and sell bonds on behalf of specific client custody account. In agreement with the client a duration for the portfolio is chosen as well as a suitable benchmark. The client can at any time alter the duration targets of the portfolio.
HP Invest was established at the end of 2007. HP Invest is subject to Danish legislation and regulations regarding investment funds and is led by a Board of Directors. HP Invest has three funds that are listed on the Copenhagen Stock Exchange and allows the certificated (units) to be traded in the market on all banking days. Price quotations and Net Asset Value can be found on the investment funds homepage www.hpinvest.eu.
HP Invest is administered by Nykredit Portefoelje Adminstration which monitors trading, mandate limits and provides the daily NAV calculation. Nykredit Bank acts as custodian. Both of these companies are subsidiaries of the Danish mortgage institute Nykredit.
HP Invest is approved, registered and under the supervision of the Danish Financial Supervisory Authority.
The investment universe is the same for all three funds: Danish government and Danish mortgage bonds and bonds guaranteed by the Kingdom of Denmark or issued Danish regional authorities. The bonds must be issued in Danish Kroner.
If any North European zone A country bond issuer, equivalent to the Danish Mortgage or Municipal and with a rating no lower, issues a bond in Danish Kroner and it is quoted on Nasdaq OMX (Danish Stock Exchange) it can be incorporated in our investment universe.
HP Invest Short Term Danish Bonds (HP Invest Korte Danske Obligationer)
The fund is dividend paying and is suitable for investors with a short investment period (minimum one year), or investors seeking an investment with low risk. The average duration shall be less than 3.
The benchmark consists of 35% Nordea Government CM (Constant maturity) 2-year and 65% Nordea Mortgage CM 3-year.
HP Invest Long Term Danish Bonds (HP Invest Lange Danske Obligationer)
The fund is dividend paying and is suitable for investors seeking a medium to long term investment period (not shorter than 2-3 years). The average duration shall be greater than 4.
The benchmark consists of 35% Nordea Government CM (Constant maturity) 5-year and 65% Nordea Mortgage CM 7-year.
HP Invest Danish Bonds Accumulating (HP Invest Danske Obligationer Akk)
The fund is accumulating and does not pay a dividend and is suitable for defensive investments of 1-2 years. The duration must not exceed 5.
On the links below you can read more about our sub funds and their historical performance.
HP Wholesale Short Term Danish Bonds (Professional Investment Fund Investin Pro)
HP Wholesale was split from HP Invest Short Term Danish Bonds in 2013. This product is exclusively targeted towards non private professional investors.
HP Wholesale is administered by Nykredit Portefoelje Adminstration, and Nykredit Bank acts as custodian.
HP Wholesale is approved, registered and under the supervision of the Danish Financial Supervisory Authority.
The HP Wholesale Short Term Danish Bonds is not dividend paying and is suitable for the cautious professional investor seeking a secure alternative to either cash deposits or an individual portfolio of Danish bonds with short range maturities.
The investment time frames and investment universe are identical with the HP Invest Short Danish Bonds fund and we attempt to maintain a minimum of 75% resemblance with that fund’s portfolio. The average maturity of Short Term Danish Bonds shall not exceed 3 years.
Contact HP Fonds for further information.
HP Hedge (Hedgeforeningen HP)
HP Hedge was established in 2007 and is an investment vehicle for professional investors in the marked for Danish bonds. HP Hedge has so far one fund, HP Hedge Danish Bonds.
HP Hedge is administered by Nykredit Portefoelje Adminstration, and Nykredit Bank acts as custodian.
HP Hedge is approved, registered and under the supervision of the Danish Financial Supervisory Authority.
HP Hedge Danish Bonds
HP Hedge Danish Bonds seeks to achieve an absolute return, aiming to earn positive returns regardless of the movements in the underlying marked.
HP Hedge Danish Bonds has the possibility of leveraging its net assets by 11 times, but on average its leverage is 4-7 times.
HP Hedge Danish Bonds is a complex product which is available to professional investors with a long investment timeframe and high risk exposure. The fund applies leverage, futures, interest rate swaps and other financial instruments and clients are advised to invest into the fund only after consulting their professional advisors and a thorough study of the current prospectus.
HP Hedge Danish Bonds is classified as “red” according to the Danish regulations regarding labeling of investment products. Red classification is given to investment products where it is possible to lose more than the invested capital or where investment products have a very complex structure. Products in the red category include hedge funds, options, futures, swaps and forward contracts.
It should be noted that losses on HP Hedge Danish Bonds cannot exceed the invested capital.
The fund is not quoted on NASDAQ OMX. Subscription is only possible on the last banking day of the month by contacting HP Fonds. Redemption can likewise only take place on the last banking day of the month and by contacting HP Fonds no later than five days prior. NAV (net asset value) is calculated daily and is published weekly on the basis on Friday's closing prices and published on the fund's homepage the following bank day.
The historical performance of the fund can be found on the following link HP Hedge Danish Bonds