DNB Fund Financials
Share class
The financial sector is a crucial part of the global economy and facilitates growth and efficiency. It includes banks, insurance companies, and various financial service firms, and accounts for over 17 percent of the MSCI World Index – only the technology sector is larger. The sector has been unpopular since the financial crisis, but many companies have strengthened their balance sheets, adapted to stricter regulations, and today stand with more robust and profitable business models.
New technology creates new opportunities for players in the financial sector. Digitalization enables established companies to deliver better and more efficient services, while also opening the door for new and innovative players that challenge traditional business models.
The actively managed equity fund invests in 30–50 companies across a broad range of financial subsectors. The fund seeks attractively valued companies with strong competitive positions, good returns on invested capital, and disciplined capital allocation. The fund is classified as Article 8 and integrates ESG factors into the investment process.
Main investment areas:
The fund invests broadly in the financial sector: banks, insurance companies, and a variety of financial service enterprises – from payment solutions, exchanges, and information services to asset management, investment banks, and credit rating agencies – as well as digital platforms and specialized niche players within fintech.
The financial sector is fundamentally different – highly regulated, balance sheet intensive, and complex. The fund is managed by Kjell Morten Hjørnevik and Knut Bakkemyr, both of whom became part of the management team in 2019. Hjørnevik has worked at DNB Asset Management since 1999 and has extensive experience in both tactical allocation and equity management. Bakkemyr has a background in auditing and asset management, and has worked with investments across a wide range of financial asset classes. Together, they form a solid and complementary team with in-depth knowledge of the financial market and many years of management experience.
The managers invest in companies where they identify a mismatch between market price and underlying value – and favor companies with robust value creation, lasting competitive advantages, and a positively asymmetric risk-return profile.
A clear, bottom-up driven investment process – supplemented with macro insights – ensures consistent implementation of the philosophy and a robust portfolio composition.
The approach emphasizes capital preservation. Risk is assessed and integrated at all stages of the process, tailored to the unique drivers in the financial sector.