Sparinvest - News

16-12-2011

Sparinvest moves its Headquarters to Luxembourg

Celebrating the tenth anniversary of its operations in Luxembourg, the Danish Asset Manager, Sparinvest SA has paid tribute to the Grand Duchy's financial services sector. Proving that actions speak louder than words, Sparinvest has announced that it has transferred the domicile of its parent company, Sparinvest Holdings SE from Denmark to Luxembourg.

The change was approved by shareholders at an Extraordinary General Meeting held in Taastrup, Denmark, on Friday 30th September.

Source: Paperjam, Luxembourg, December 2011.

Celebrating the tenth anniversary of its operations in Luxembourg, the Danish Asset Manager, Sparinvest SA has paid tribute to the Grand Duchy's financial services sector. Proving that actions speak louder than words, Sparinvest has announced that it has transferred the domicile of its parent company, Sparinvest Holdings SE from Denmark to Luxembourg.

The change was approved by shareholders at an Extraordinary General Meeting held in Taastrup, Denmark, on Friday 30th September.

Source: Paperjam, Luxembourg, December 2011.

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09-12-2011

UCITS IV First Mover: Sparinvest wants to build a big cross-border business

A Danish mutual fund company wants to build a big cross-border business. So why is it moving its headquarters to small Luxembourg?

(Source: DELANO Luxembourg, December 2011)

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11-08-2011

A Statement Regarding Market Volatility

Market turmoil does not affect our strategy
At Sparinvest we always invest with long-term results in mind. We don’t try to make predictions or speculate on developments in the financial markets and we never let short-term movements in either markets or economies affect our investment decisions. We firmly believe that the best and most stable returns will be achieved over time by defining the risk profile of an investment and sticking with a long-term strategy that will match it. We then stick to our guns and follow the strategy whether markets are going up or down. This is why we are able to see many factors underlying the current market situation that give us confidence in the long-term potential for strong returns. We are even looking at new investment opportunities.

Market falls will not change our long-term focus
You will no doubt be aware that August has not started well for equities. The markets were already in a state of nervousness caused by continuing worries about the debt crisis in peripheral Europe and disappointing economic figures. But the decision by the credit ratings agency, S&P to downgrade the USA from the highest AAA rating to the second-highest, AA+ has increased volatility and fuelled a steep market decline which has also adversely affected Sparinvest equity funds. On the positive side, our corporate bond fund range (and especially Sparinvest Emerging Markets Corporate Value Bonds) has performed robustly during the past year. To us this is an indication that many companies are much leaner, fitter and less indebted than they were two years ago, which is why we remain positive about the prospects for stock market recovery in due course.

Market turmoil does not affect our strategy
At Sparinvest we always invest with long-term results in mind. We don’t try to make predictions or speculate on developments in the financial markets and we never let short-term movements in either markets or economies affect our investment decisions. We firmly believe that the best and most stable returns will be achieved over time by defining the risk profile of an investment and sticking with a long-term strategy that will match it. We then stick to our guns and follow the strategy whether markets are going up or down. This is why we are able to see many factors underlying the current market situation that give us confidence in the long-term potential for strong returns. We are even looking at new investment opportunities.

Companies are stronger now than in 2008
A significant difference between the situation we see now and the market falls that we experienced in 2008 is that individual companies today are much stronger than they were when the financial crisis first took hold. In the past two years, the companies we invest in have spent a great deal of effort adapting to the reality of the post-crisis environment. This has meant cutting costs and focusing on their core business propositions.
The current turmoil has not altered the fundamentals of our companies which still have strong balance sheets and solid earnings. Our investments are made with the expectation that we will encounter periods of turbulence along the way but by investing in healthy, well-run companies with strong long-term potential, there is some built-in resistance to short term setbacks. This is why our strategy does not change when markets fall and why we remain confident that our portfolios will prove their worth over time by delivering satisfactory returns for the long-term investor.

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04-05-2011

Expectation of higher interest rates caused negative returns

After experiencing returns above expectation for the last 3 years, the Long Danish Bonds Fund showed negative returns of around 1.8%. In this video interview Claus Carøe explains that focus in the asset class is shifting from the issuer side to the investor side and that expectations of higher interest rates are now built into the yield curve. Claus Carøe expects the 2nd quarter to be more stable although still influenced by political issues.

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04-05-2011

Return of 6.5% in a dramatic 1st quarter

The increasing oil price and stronger regulation in the financial sector in Europe contributed to a high return for the fund in the 1st quarter. The higher oil price was beneficial to the assets in the energy sector in which the fund is overweight. In the financial sector, regulations are forcing the banks to become more creditor friendly by issuing equity, selling assets and reducing debt. In the video interview, Portfolio Manager Toke Hjortshøj shares his views on the developments in 1st quarter.

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