Nordea 1 – Global Inflation Linked Bond Fund

A new bond fund offering real return

Nordea 1 – Global Inflation Linked Bond Fund invests mainly in inflation-linked bonds.  Inflation-linked bonds differ from ordinary bonds as their capital and return have been tied to the consumer price inflation index. In other words, they offer compensation for the realised inflation thus minimising the investor’s inflation risk.

Furthermore, the dependence of inflation-linked bonds’ return, in other words correlation, on nominal interest bonds as well as other asset classes is low. This means they offer a diversification benefit in the investment portfolio.

The bonds the fund invests in are issued by developed countries, supranational institutions, municipalities, building societies and companies. The investments are diversified globally and the fund’s currency risk is hedged.

The fund involves an interest rate risk caused by changes in the interest rate level, a credit risk based on the issuer’s solvency and counter-party and operative risks due to the derivatives used in the fund’s investment operations. You can read more about the risks in the Key Investor Information Document (KIID).

The fund suits you if

• you want a fixed-income investment with a minimised inflation risk
• you want to invest globally in government bonds
• you want to improve the diversification of your investment portfolio
• your investment horizon is at least 2 years.

Nordea 1 – Global Inflation Linked Bond Fund is managed by Nordea 1, SICAV, which is an undertaking for collective investment operating in Luxembourg.

Key Investor Information Document
Official prospectus including fund rules