DNB Fund Nordic High Yield
Credit opportunities in a region known for stability and transparency
The Nordic high yield market combines attractive ongoing returns with stability and risk diversification. The Nordic countries have strong economies, low government debt, and high political stability. Sweden, Norway, and Denmark all have top credit ratings (AAA), and the region has previously demonstrated great resilience during both financial crises and pandemics. This creates a robust foundation for investments in Nordic corporate bonds with high yields.
The fund invests in bonds issued by companies in Norway, Sweden, Denmark, and Finland, providing broad exposure to a range of sectors including industry, real estate, finance, and technology. The Nordic high yield market stands out for its high transparency, good credit quality, and low interest rate sensitivity, as many of the bonds have floating rates and short maturities. This reduces the fluctuations in the fund's value when interest rates change. The result is an actively managed portfolio that balances attractive returns with lower volatility and good credit quality.
DNB Fund Nordic High Yield primarily invests in companies with solid fundamentals and stable cash flows, with a particular focus on bonds in the BB+ to B- segment. The fund prefers bonds with floating rates and short maturities, which provide low interest rate sensitivity and a portfolio duration of up to 2 years.
Main investment areas:
Real estate with stable cash flows, Transport and logistics, Diversified financial services, Banking and credit institutions, Government and public sector, as well as selective exposure to industry and energy.