Different funds
You Invest consists of different funds that cover a wide range of investment opportunities. The funds can be either actively managed or passively managed, the latter also being known as index funds.
In an actively managed fund, the objective is to generate returns higher than those generated by the underlying market the fund invests in. This could, for example, be the fund, BankInvest Højt Udbytte Aktier (High Return Shares), which is a fund managed by an external asset manager.
In a passively managed fund, the target is to generate a return that highly reflects the return from the underlying market that the fund invests in. The costs associated with passively managed funds are also typically lower than those of actively managed funds. You can recognise these funds by the ‘PFA Indeks’ in their names. The fund's returns may deviate more from the benchmark returns than is typical for an index fund, as a comprehensive ESG screening of the companies' ESG profiles is conducted, i.e., their social, governance, and environmental impacts. The ESG screening may, for example, result in the exclusion of companies on PFA’s exclusion list or those with an ESG score below a minimum level set by PFA, as well as certain countries or sectors, either partially or entirely, from the portfolio. As mentioned, this can lead to significant deviations between the fund's returns and its benchmark, i.e., the returns from the underlying market.
Most of the funds are share funds. There are both global share funds and funds that invest in a specific region or individual country. There is also a single sector fund, dealing with the healthcare sector.
There are also several bond funds where you can, for example, invest in traditional Danish bonds or in index-linked bonds. In both types of funds, the returns will be influenced, among other things, by the development of inflation. Additionally, you can invest in bonds from Emerging Markets or in corporate bonds with varying degrees of credit quality.
Finally, there are also some special funds that allow you to invest in commodities and real estate.