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Mandatum Life Fixed Income Portfolio strategy provides an active and extensive portfolio management solution. Investments are made in fixed income markets on a diversified basis and according to current market views. Basket funds are invested in deposits, money market and fixed income instruments, mutual fund units and derivatives contracts. Interest rate risk (duration-measured) may vary from 0 to 15 years in duration and credit risk may not exceed 100% of the investment basket’s market value. The objective of the investment basket's investment activities is to apply active interest rate allocation to achieve a long-term return that outperforms money market instruments with credit risk. Other than euro-denominated investments’ currency risk can be modified with FX derivatives (both exchange traded derivatives and OTC-products).
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