Investment in equity
Only invest money that you can do without for at least four years
Equity is considered to be the best investment over time. As we have just seen during the outbreak of COVID19, stock markets can dive from one day to the next, and then it becomes crucial that you as the investor is not pressured to sell at a bad time because you need the cash. Our rule of thumb is that you should only invest money that you do not need in the next four years. With that time horizon, you will be equipped to get through fluctuations in the market - and you will historically have 85% chance of also having benefited from your investments. But of course, there are no guarantees for that.See how we invest
Our risk profile with 100% equities is high risk, or as your pension or bank advisor often says: "We have a long time horizon."
At Annox, we value investments, both in stocks and alternative funds, as well as knowledge and education. We want to contribute to and spread the understanding of stocks and equity funds for the same reason. Therefore, we have created the e-guide below about equity funds to share our understanding of them with our customers. We are constantly working to improve the e-guide and welcome suggestions for topics or things that you think should be better illuminated.
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Returns follow the risk, all else being equal. Risk is usually defined in banks as fluctuations in losses and gains on your wealth. Low risk usually results in low returns. High risk should hopefully be offset by high returns, also combined.
Our risk profile with 100% equities is high risk, or as your pension or bank advisor often says: “We have a long time horizon.”
Costs should ideally be in line with the returns delivered. We use low ongoing costs, and only if the returns are excellent do the costs increase.
In average each share accounts for only 0.5% percent of the portfolio, which provides you with a very diversified portfolio. Thus, one does not have a high concentration in any single stocks, as one sees in many other funds and indices that are market-weighted. For example, Amazon, Microsoft and Apple together make up over 30% of the Nasdaq 100 index. In contrast, the 3 largest stocks in the ANNOX fund typically make up no more than 4%.
Our equity portfolio is global consisting of more than 200 international equities from different regions. The main regions we work with are the Nordics, European, North American and Australian Asia - ie. all the regions known as being developed countries. Together these regions make up 90% of the global stock market.
As an investor in a mutual fund, you get easy and quick access to insight and knowledge about the financial markets
A mutual fund is an association of investors who invest together in predefined asset class or market. It can be stocks, bonds or something completely different. It can also be a mix of different asset classes. The members of the investment fund share the return and costs in proportion to the amount invested.
The investors own ANNOX
If you invest in ANNOX, you become a member of the mutual fund ANNOX Quant Global ESG Kl, which is a branch under Nykredit’s Investeringsforening Investin. As soon as you have purchased your investment certificate, you are automatically a co-owner of the association for the share that your certificate stipulates. The investment certificates can be traded daily on the stock exchange. The association is owned exclusively by the investors, who have access to the general meeting and who also have an influence on, for example, the election of the board.
Mutual funds can be traded on Nasdaq through online banking between 9-17 European Central Time. The pricing is done by the market maker of the fund, i.e. Nykredit.
The time for pricing is set at 10, 11, 12 and 16 every banking day, European Central Time for Annox Quant Equity ESG at.
When an investor submits a subscription or redemption request through the order form, the investor enters into a binding buy / sell order; price setting and execution usually takes place at the time of the next pricing.
Most mutual funds can be traded on a daily basis through online banking access to the Nasdaq exchange. However, when investing in mutual funds, the indicated time horizon is usually directed towards long-term investment.
Mutual funds can also be traded directly with the fund administrator through the order form. (In Annox’s case, this is Nykredit)
The administrator issues or redeems units based on the day-to-day transactions within the mutual fund. Investors are allocated shares corresponding to a proportionate share of the value of the underlying assets.
The price you can see in your online bank for a fund is the last known NAV price +/- subscription / redemption fee, as well as a minor adjustment that the marketmaker makes to price the fund, based on changes in the market since NAV last was calculated.
We apply “ever high water mark”, which means that ANNOX only receives performance fees when the return is above the high water mark and reaches a new height. If the performance is not above the high watermark, you only pay the admin fee of 0.75%.
You pay a brokerage fee for subscriptions / redemptions in the fund.
Your bank will charge you brokerage fee, that varies from bank to bank. Typical prices for brokerage through online banking are 0.15%. If you instruct your bank adviser to trade for you, the brokerage price may be higher.
In addition, you pay 0.35% to the fund when you buy or sell (subscripe/ redeem).
The investment certificates in ANNOX are listed on the stock exchange and must therefore be deposited with a bank. If you want to invest your pension funds in ANNOX, you can set up a pension scheme with a bank and elect to invest your pension savings in investment certificates from ANNOX. Ie. your pension scheme itself is with a bank, but the funds are invested in investment certificates from ANNOX.