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Danish manager's bond fund hit hard by increasing interest rates

Formuepleje’s Fokus fund is down by 18 percent since the start of the year.

Photo: PR / Formuepleje

Danish mortgage bonds have typically been a safe harbor for investors, but rapidly increasing interest rates have meant that Danish asset manager Formuepleje’s Fokus fund, which invests in Danish mortgage bonds and uses leverage to gear its investment returns, has a generated -18% return since the start of the year, Danish financial media Børsen Pro Finans reports.

”Clearly, this is not satisfactory. We do not design products to lose money. So when that happens, it is a bummer,” says Frank Reisbøl, director and partner at Formuepleje, to the media.

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