Don't Worry. Stay covered.
Whether you are taking your first steps into investing or are a more seasoned investor, Covered Bonds could be your answer. This asset class is characterised by strong protection and attractive returns. Our covered bond strategies benefit from these characteristics while offering you different risk levels tailored to your needs.
Stay covered with Nordea’s Covered Bond solutions.
- Safety first for your lower risk investments
- Low volatility carry
- Alpha generation from an experienced team with a strong record*
*The performance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. There can be no warranty that an investment objective, targeted returns and results of an investment structure is achieved. The value of your investment can go up and down, and you could lose some or all of your invested money.
Why covered bonds? For protection.
Highly secured bonds
- If the issuer (a bank or mortgage institution) becomes bankrupt, the covered bonds have priority of payment in liquidation
Supported by a double level of protection (dual recourse)
- Backed by the issuing institution
- Backed by a “cover pool” of highly regulated assets that will cover the bond’s payments if the issuer can’t.
No covered bond has ever defaulted in more than 200 years.
Two covered bond solutions to meet your different requirements
Nordea 1 - European Covered Bond Fund
LU0539144625 (BI-EUR)
Nordea 1 - Low Duration European Covered Bond Fund
LU1694214633 (BI-EUR)
Nordea 1 - European Covered Bond Fund
LU0539144625 (BI-EUR)
Nordea 1 - Low Duration European Covered Bond Fund
LU1694214633 (BI-EUR)
The two European Covered Bond funds follow the same investment strategy and are managed by the same experienced team. The performance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of shares can greatly fluctuate as a result of the sub-fund’s investment policy and cannot be ensured, you could lose some or all of your invested money. ** There can be no warranty that an investment objective, targeted returns and results of an investment structure is achieved. The value of your investment can go up and down, and you could lose some or all of your invested money.
A strong record of Alpha generation
(starting 30.01)
Nordea 1 – European Covered Bond Fund
Iboxx euro covered
Alpha
Nordea 1 – European Covered Bond Fund
Iboxx euro covered
Source (unless otherwise stated): Nordea Investment Funds S.A. Period under consideration (unless otherwise stated): 01.01.2013 – 31.12.2024. Performance calculated NAV to NAV (net of fees and Luxembourg taxes) in the currency of the respective share class, gross income and dividends reinvested, excluding initial and exit charges as per 31.12.2024. Initial and exit charges could affect the value of the performance. The performance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of shares can greatly fluctuate as a result of the sub-fund’s investment policy and cannot be ensured, you could lose some or all of your invested money. If the currency of the respective share differs from the currency of the country where the investor resides the represented performance might vary due to currency fluctuations. * Average outperformance of the Nordea 1 – European Covered Bond Fund BP-EUR over the Iboxx EUR Covered Total Return Index, calendar year basis. Source: Nordea Investment Funds S.A. 01.01.2013–31.12.2024.
Experienced Team of Portfolio Managers
- 26 years average experience
- +15 years average working together
- Manages over EUR 40bn* in this highly liquid market
- With a strong track record of outperformance**
*Source: Nordea Investment Funds S.A. AuM as at 31/12/2024.
**The performance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of your investment can go up and down, and you could lose some or all of your invested money.
Glossary
Covered Bonds: top ranking corporate bonds with a double layer of protection
Spread Risk: the risk/opportunity arising from the additional bond yield over the risk free rate related to the risk of the issue
Interest rate risk: the sensitivity of a bond or a fund to interest rates, which drive bond prices down when rates go up
Duration hedge: reducing the exposure to interest rate risk, thereby making the fund’s performance less volatile
Fixed Income Rates Team
Multimedia
- 7 January, 2019
- European Covered Bonds
- Video