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 range of covered bond strategies benefits 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.

European Covered Bond Funds 1

Three covered bond solutions to meet your various risk requirements

Source (unless otherwise stated): Nordea Investment Funds S.A. Period under consideration (unless otherwise stated): 01.01.2013 – 31.12.2022. 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 31.12.2022. 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. 01.01.2013–31.12.2022.
All three European Covered Bond funds follow the same investment strategy and are managed by the same experienced team. The 1.15% alpha generation potential represents historical performance of the European Covered Bond Strategy, which is representative of the potential value added for all three funds and has the longest track record. The funds differ in their risk levels – spread and interest-rate risk. The doubling of the credit risk exposure in the Nordea 1 – European Covered Bond Opportunities Fund potentially increases the alpha opportunity.** * Average outperformance of the Nordea 1 – European Covered Bond Fund BP-EUR over the Iboxx EUR Covered Bond Index, calendar year basis. Source: Nordea Investment Funds S.A. 01.01.2013–31.12.2022. 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.

Experienced Team of Portfolio Managers

  • 22 years average experience
  • 15 years average working together
  • Manages over EUR 40bn in this highly liquid market
  • With a strong track record of outperformance*

*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

Danish Fixed Income & Euro Covered Bond Team

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