The fund invests in Scandinavian government and mortgage bonds and bonds with equivalent security, including specially covered mortgage bonds. At the time of investment, the bonds must have a remaining duration of less than 5.5 years. As a starting point, the bonds are held for 3 years, after which the portfolio is realized. See illustration.
Investments will be leveraged via repo facilities in DKK, SEK, NOK, EUR as well as Danish, Swedish and Norwegian bonds. The interest rate risk is hedged with swaps or government bonds in local currency.