Active management is true fund management.

Kraft Corporate Bonds

European credit – Nordic foundation

Kraft Corporate Bonds is an actively managed fixed income fund specialized in the European corporate bond market. The fund is managed by Øivind Thorstensen and Simen André Aarsland Øgreid, who use their deep credit expertise to identify the best risk-adjusted opportunities in the European universe. By combining a Nordic investment philosophy with a broader and more liquid market, we seek to create added value for our unitholders.

Value management – Our three pillars

Our asset management is based on three mandatory principles that serve as a compass for all investment decisions:

– Protection of principal: This is our number one priority. Through a deep dive into loan documentation and collateral packages, we seek to secure our position in the capital structure. We only invest where we believe the downside is well protected.

– Maintain portfolio liquidity: We strive for a composition that ensures freedom of action in all market phases. Liquidity is an active choice that allows us to act quickly when opportunities arise or risks change.

– Relative pricing of risk: We rely on our own proprietary credit analysis rather than external assessments. By identifying inefficiencies in the market, we can find bonds where the credit spread results in overpaid risk.

Strategy – Active value creation

Excess return in the fund is created through active portfolio construction and ongoing repricing of risk. We distinguish ourselves by being dynamic in our approach:

– Active repricing: We closely monitor company fundamentals and market conditions. This involves a disciplined approach to taking profits when a security is fully priced, and the ability to take losses if the fundamentals of an investment weaken.

– Utilization of the yield curve: We actively analyze the yield curve of issuers to identify mispriced maturities. By moving capital between different maturities (curve arbitrage), we capture excess returns based on relative value.

– Structural understanding: We consider order of priority and security across issuers and sectors. This in-depth understanding of the structural aspect is the cornerstone of our search for alpha for unitholders.

Our mandate

The fund has a European mandate with a natural Nordic bias. We build a robust portfolio with broad sector diversification, typically consisting of 35-40 different investments. This composition provides a well-diversified exposure to the European economy. The fund aims for an average duration of less than 5 years and is managed in line with the established UCITS regulations, which ensure a good framework for risk diversification and liquidity.