DNB Fund Low Volatility Equities
Invest in companies with lower price fluctuations
DNB Low Volatility Equities provides broad global equity exposure with a focus on stability. The fund invests in companies with lower historical volatility, aiming to reduce the risk of significant value declines compared to the broader equity market. The fund targets developed countries, including the USA, Europe, and Japan, and invests only in stocks listed on regulated exchanges.
The goal is to provide smoother returns over time, without compromising on global diversification. The portfolio is constructed based on factor analysis, which looks at volatility, diversification, and company quality, among other things. This contributes to lower overall risk and moderate deviations from the benchmark index.
The fund is actively managed and has a disciplined investment strategy. The portfolio typically consists of a selection of companies that provide a lower overall level of volatility than the broader market. The fund avoids companies with high concentration risk and seeks a good balance between sectors and regions.
Stock selection is based on analysis of risk factors, valuation, and stable earnings. The fund looks for companies that have consistently delivered solid and predictable cash flow over time, combined with low volatility and good capital discipline.
Main investment areas:
Information technology, finance, healthcare, communication services, industrials, defensive and cyclical consumer, utilities, energy, and materials.