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About the Climate Transition Bond Fund
Bond fund with unique access to stable
corporate bonds generating impact.
01.
Terms
Return ➡ 5% p.a.*
Style ➡ Active Management
Rating ➡ A-**
Duration ➡ Avg. 5 years
Costs ➡ 0.5% p.a.
*Expected under current market conditions, equivalent to 2%
pick-up to 5y DKK mortgage bonds (flexobligation). Pre-cost.
**Current average portfolio rating. Min. avg. investment grade.
02.
Real-world climate impact
... Not just on paper!
03.
Impact
04.
Stability And Low Risk
A safe investment. Portfolio of 20-30 bonds with similar bankruptcy risk as Danish mortgage bonds as measured since 2010 at 0%*. Since 1982 a mere 0.15% bankruptcy risk*.
In the unlikely event of a company bankruptcy, the loss is fully recovered after 8 months of interest payments in the fund.
Focus on stable capital appreciation with no gearing.
05.
Our Bond Universe
We only invest in large, well-rated and market-leading bond issuers, predominantly in EUR. The size of our bond universe is significant. In fact, the global bond market is 1.3X larger than the global stock market!
06.
Low Cost And Optimized Return
Cost is king! On average 50% lower costs than other ESG bond funds managed actively in Denmark*.
The fund’s benchmark is to consistently deliver an attractive excess return to other low-risk alternatives, for instance Danish mortgage bonds of similar duration. Historically, excess return between 1.5-3%.
At present, above 2% excess return to 5y Danish mortgage bonds. On a DKK 10m investment that equates to DKK 1.1m excess return over 5 years.
*Source: Finans Danmark (2024)
07.
Climate Transition
Impact is key! We invest for a greener planet and adapting to irreversible climate change.
Unlike most other ESG funds focusing on showing lowest possible CO2 footprint on paper, we prioritize real-world impact, driving millions of tons of annual CO2 reductions and building resilience to climate change. We want to make a tangible impact for our planet. Investing with purpose.