- Advertisement -
- Advertisement -

Related

WH holds steady in August, sees positive trends

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – Danish Asset Manager WH Asset Management A/S posted a 0.74% increase (+4.56% YTD) for August. This was by comparison to a rise of 0.49% on the MSCI World Index and an estimated drop of -0.13% on the NHX Composite.

The fund, which invests in bonds and stock indices, invests in a combination of equity and loan capital and maintains a returns target of 10% per annum, sought by holding the right mix of stocks and bonds, reducing risk in stock index investment and investing in a combination of markets simultaneously.

In a comment to the month’s performance, Portfolio Manager Allan Winkel Hansen explained the month of August was one of mixed results, beginning strongly with positive news from the U.S. on the economy and unemployment, with the creation of over 250,000 new jobs outside agriculture, which contributed strongly to global equity markets. With virtually no corrections in the latter in the past few months, a positive underlying trend is emerging whereby current measurements will help set the tone in markets in the short term.

Shares couldn’t keep up in the latter part of the month, however, with Emerging Markets proving the exception, showing neat trends and continuing the good performance on display in previous months. Emerging Markets, Mr Hansen says, have performed better than traditional markets this year, after several years of underperformance and amid the recovery and stabilization of growth prospects in major markets such as China, India and Brazil. This is a sign of increased risk appetite, he says, but which is also supported by commodity prices rising in general, which is traditionally positive for Emerging Markets.

As usual, there was a heavy emphasis on the U.S. Federal Reserve, with high unemployment figures and the commentary of various members of the Fed leading to growing speculation a rate hike is imminent in September (without markets per se being convinced of this). This focus is somewhat excessive, according to Mr Hansen, as whether there are hikes in September or December ought to have a minimal impact on the real economy as a longer series of hikes is not expected. It is, however, expected that interest rates will remain low for the foreseeable future, with the main thing likely to be able to alter outlooks being a demand for assets capable of producing higher returns than can be achieved at the current 0% risk-free rate.

Danish government bonds showed negative returns in August, but the search for yield ensured a high demand for mortgage bonds, which contributed positively to profits for companies in the WH portfolio. It also created a high demand for high-yield corporate bonds and bonds issued by emerging markets. Both asset classes therefore enjoyed a good month, says Mr Hansen, with increases of 1.88% and 1.67% respectively.

Picture: (c) ramcreations – shutterstock.com

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Glenn Leaper, PhD
Glenn Leaper, PhD
Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Politics and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.

Latest Articles

Sissener Expands Investment and Sales Teams with Senior Hires

Just months after bringing on Mads Andreassen as Investment Manager, Norwegian fund boutique Sissener AS continues to expand its team with two key additions....

Fenja Capital Deepens Bench as Analyst Moves to Full-Time Role

After earning his Master’s degree in Economics from Aalborg University, Anders Madsen has transitioned from a part-time role to a full-time analyst position at...

Accendo-Backed SSH Secures Major Investment from Leonardo

While public and policy discussions around defence often focus on conventional weapons, many of today’s most active and frequent battles are unfolding in cyberspace....

Swedbank Robur Strengthens Private Equity Team

Swedbank Robur has appointed Lorenzo Gregory Sormani as co-portfolio manager of its private equity fund, Swedbank Robur Alternative Equity I, joining Senior Portfolio Manager...

Beyond Renewables: Coeli Fund Taps Into the Broader Electrification Race

Earlier this year, portfolio managers Vidar Kalvoy and Joel Etzler renamed their fund from Coeli Renewable Opportunities to Coeli Energy Opportunities – a move...

Three Danish Hedge Funds Recognized by the Hedge Fund Journal

Three Danish hedge funds have been recognized at the 2025 Hedge Fund Journal CTA and Discretionary Trader Awards. Two funds managed by Danske Bank...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.