DNB Asset Management has managed its in-house multi-manager, multi-strategy fund platform since early 2020. After a period of muted performance in its early years, the fund has delivered particularly strong results over the past three years. Initially available only to Nordic investors, the former DNB Fund Multi Asset, now renamed DNB Fund Stable Alpha, is being introduced to the DACH region, covering Germany, Austria, and Switzerland.
“We are delighted to now make this fund available to investors in the DACH region,” says Dr. Malte Kirchner, Head of German-speaking Europe at DNB Asset Management. DNB Fund Stable Alpha combines twelve distinct internal strategies with a predominant focus on alpha generation, aiming to deliver stable returns across different market environments. With a targeted annual gross return of 4 percent above the risk-free rate and an expected volatility of 3-5 percent, the fund positions itself as a resilient alternative to traditional balanced portfolios, particularly relevant in an environment of structurally elevated market uncertainty.
“We are delighted to now make this fund available to investors in the DACH region.”
“Many investors today question the stability of classic balanced portfolios. Our Stable Alpha approach deliberately focuses on diversification beyond traditional risk premia,” adds Kirchner. “We are pleased to now make this fund accessible to both professional and private investors in the DACH region.” Building on that point, Amra Koluder, Head of International Clients & Distribution at DNB Asset Management, highlights the growing demand for such strategies. “Our clients are looking for solutions that can provide stability regardless of market direction,” says Koluder. “With Stable Alpha, we offer exactly that: a diversified, active approach with daily liquidity and high transparency, without relying on a traditional fund-of-funds structure and its associated costs.”
DNB’s Internally Managed, Best-in-Class Strategies
Since the early days of the coronavirus pandemic, DNB Asset Management has integrated a range of its internally managed, best-in-class strategies into this multi-asset, multi-strategy absolute return fund. The underlying strategies of DNB Fund Stable Alpha are broadly divided into two segments: alpha and beta. Alpha strategies currently make up around 75-85 percent of the portfolio, complemented by targeted beta exposures that provide stability and tactical flexibility. Portfolio managers Kim Stefan Anderson and Daniel Berg actively manage the fund’s allocations, supported by regular investment committee meetings where each strategy is assessed for its expected return, risk profile, and correlation within the overall portfolio.
On the alpha side, the portfolio combines a diverse set of market-neutral long/short equity strategies, with exposure to Norwegian equities as well as global financials, technology, media, telecommunications, and renewable energy stocks. It also incorporates macro-oriented approaches, including a discretionary FX strategy focused on G10 currencies, a non-directional equity index futures strategy, and a systematic trend-following component that leverages momentum signals across multiple asset classes.
On the beta side, the fund allocates to carefully selected fixed income instruments, including a Norwegian investment-grade corporate bond portfolio, a global high-yield strategy focused on “fallen angels,” and a duration-focused approach targeting U.S. and European government bonds with medium to long maturities. The beta sleeve also features a low-volatility global equity strategy designed to capture long-term risk premia, which is deployed tactically for defined periods to complement the portfolio’s alpha-driven core.
Track Record and Rebranding
Launched amid the turbulent market conditions of the coronavirus pandemic, DNB Fund Stable Alpha delivered muted returns in its first year, finishing 2020 flat, followed by a 4.2 percent gain in 2021. The fund experienced a slight decline of 1.8 percent in 2022. Since mid-2022, performance has improved, with the fund closing 2023 up 6.2 percent and achieving its strongest result in 2024, with a 10.3 percent return. The fund has advanced an additional 4.8 percent year-to-date through the end of September.
The fund was recently renamed from DNB Fund Multi Asset to DNB Fund Stable Alpha, reflecting a clearer representation of its strategy, which differs significantly from traditional multi-asset or balanced products. The new name emphasizes the fund’s strong allocation to alpha-generating strategies and its systematic focus on delivering stable, market-independent returns.
