DNB Fund Norway Corporate Bonds provides access to the Norwegian corporate bond market, aiming to offer steady returns through investments in debt securities with good credit quality. The fund is suitable for those who want lower risk than equity funds, but with higher potential returns than traditional savings accounts.
The fund invests in debt securities issued in Norwegian kroner, focusing on bonds from banks, public entities, and solid Norwegian companies. All investments have a minimum credit rating of BBB–, which means they are rated as investment grade, thus with a low probability of default.
The portfolio has moderate interest rate sensitivity, meaning that the value of the fund may be affected when interest rates in the market change. The fund invests in bonds with slightly longer maturities, which allows for higher interest income, while keeping the risk at a moderate level.
The fund follows strict investment guidelines and is not allowed to invest in fund bonds. A smaller portion of the fund can be placed in responsible loans and bank deposits with longer lock-in periods, but overall, the risk level is limited through clear rules about what the fund can own.
DNB Fund Norway Corporate Bonds is suitable for those who want a safer placement of their savings, with predictable returns and low credit risk, while investing in companies with strong financial health in the Norwegian market.
Main investment areas:
Corporate bonds issued by Norwegian banks, the state and municipalities, state-owned enterprises, and solid private companies with high creditworthiness.
