DNB Fund Nordic Flexible Bonds
Stable interest rate exposure with flexibility in the Nordic bond market.
DNB Fund Nordic Flexible Bonds provides balanced access to the Nordic bond market. The fund invests in corporate bonds with low to moderate credit risk from across the Nordic region. The portfolio offers exposure to companies in Norway, Sweden, Denmark, Finland, and Iceland, either through geographic affiliation, operations, or market listing. The fund combines stable returns with good credit quality and broad risk diversification.
The main focus is on bonds with high creditworthiness. Most of the investments are in bonds with an investment grade rating, meaning a minimum of BBB−. This implies a low probability of default and provides more stable cash flows than typical high-yield bonds.
The fund also has the flexibility to include high-yield bonds. The mandate allows for selective investments in securities with lower credit quality, down to B− when this is deemed to provide attractive excess returns. This gives the manager room to adjust the risk profile in line with market conditions.
Currency risk is managed through systematic hedging. Investments in foreign currency are generally hedged back to the fund's base currency. This helps to reduce the impact of currency fluctuations on the fund's overall value development.
Main investment areas:
Financial services, Industry and manufacturing, Non-cyclical consumer, Utility services, Energy, Diversified companies, and Communication services.