DNB Technology



A successful history, a solid infrastructure and an experienced management team

DNB Fund - Technology is a UCITS IV global equities long-only fund investing in the telecom, media and technology sectors.

The fund has had a strong track record since its inception in August 2007. 

DNB Fund - Technology has a dedicated and experienced management team, headed by Anders Tandberg-Johansen, and can pride itself on its success on several fronts. In 2014 the fund was awarded the Lipper Fund Awards as the best over a five-year period in the category ‘Equity Sector Technology, Media and Telecommunication’. The fund has also been assigned top rating by Morningstar.


Strategy insights

Details on the strategy

The stock selection process is based upon four pillars: theme, value creation, valuation and momentum

Theme: We look for long-term trends within the TMT (telecom, media and technology) universe to identify the stocks that are best and worst positioned for changing industry trends. The TMT sector is characterised by rapid change which benefits certain business models while being disruptive for others. Understanding the industry themes and trends is a critical part of our investment process and forms the basis for the screening of stocks.

Value creation:
After the screening process, we look at the value creation potential. At the core of this process is management evaluation. The key parameters we are looking at are management track record, board track record, relative scale within the industry, barriers to entry, product demand, input factor, scarcity and inventories.

Valuation: The focus is on capturing future price directions by identifying value early. E.g. we will occasionally choose long stocks that have unfavorable trends or poor historical value creation if we identify deep value that can be realised through future changes in management, mergers, acquisitions or a change in capital allocation.

Momentum: We carefully monitor short-term earnings momentum and appurtenant market expectations. Certain companies and sectors also exhibit strong price momentum which impacts our entry/exit strategies.

Through modelling the whole value chain within the TMT sector, we sometimes find discrepancies between our own expectations and the market expectations. If we see satisfactory reward in relation to risk, we will make adjustments to our portfolio. As such situations often create high volatility, we take advantage of that to find good entry points for our long- or short-term positions.

Instrument types in the investment process

DNB Technology is a pure long-only equity product with close to 100% invested in equity stocks. The fund is authorised to make use of derivative financial instruments. The derivatives may include, amongst others, options, futures and forward contracts on financial instruments and options on such contracts, as well as swap contracts by private agreement on any type of financial instrument.
The derivative financial instruments must be dealt in an organized market or contracted by a private agreement with first-class professionals specialized in this type of transaction.

What makes the strategy unique?

Skilled and incentivised industry experts work with a proven infrastructure within a strong risk management framework. Valuation is viewed as a qualifying, but not an absolute, factor. What is actually priced into the stock is also a question. Company-, industry- and stock-specific knowledge are part of the investment decision and are analysed by virtue of various methodologies. An active approach and a disciplined portfolio construction process are part of our key attributes. Ultimately, it is the specialized skills, the knowledge and the experience of our individuals that will set us apart from our peers. Additionally, we consider that our strong relationship with the DNB group, as well as our access to a significant network of industrial expertise, will continue to provide us with a competitive advantage.