DNB to Bolster Absolute Return Offering

Stockholm (HedgeNordic) – DNB Asset Management announced plans to expand its range of absolute returns strategies with the upcoming launch of DNB Fund Multi Asset. The soon-to-be-launched fund will invest across several markets such as equities, currencies, rates and credit by blending both discretionary and systematic strategies.

“With a strong belief in the merits of absolute return strategies, DNB are excited to be extending our absolute return offering through the upcoming launch of DNB Fund Multi Asset,” writes Lena Öberg (pictured), who focuses on manager selection within Absolute Return Investments at DNB. “Through access to non-traditional return drivers and active strategy allocation, DNB Fund Multi Asset will seek to offer investors a valuable source of return and provide diversification benefits that do not rely on a negative correlation between equities and bonds which is generally the case in traditional balanced funds,” she adds.

DNB Asset Management’s existing absolute return offering includes DNB TMT Absolute Return and DNB ECO Absolute Return, both launched in late 2010 with an ambition to manage equity long/short strategies with market-neutral exposure. DNB TMT Absolute Return maintains a close to zero beta portfolio of stocks in the global telecom, media and technology sectors to capture alpha regardless of equity markets are heading. The market-neutral equity fund’s EUR share class, which is reflected in the Nordic Hedge Index, delivered an annualized return of 3.2 percent since launching in December of 2010. The fund’s NOK share class generated an annualized return of 4.7 percent over the same period.

DNB Fund Multi Asset will employ both long-only and long-short strategies, as well as relative-value trades. The portfolio management will rely on the expertise of multiple investment teams within DNB Asset Management. “Considering the low bond yields we currently have, we believe the benefits of diversifying a broader portfolio with non-traditional return drivers will prove an efficient way to provide downside protection,” concludes Öberg.

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Eugeniu Guzun

Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index (NHX), as well as being a novice columnist covering the Nordic hedge fund industry for HedgeNordic. Prior to joining HedgeNordic, Eugeniu had served as a columnist for a U.S. journal covering insider trading activity, activist campaigns and hedge fund moves. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018.

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