Active management is true fund management.

An Investment Grade fund with a focus on Nordic bonds

The fund is managed by Øivind Thorstensen and Simen André Aarsland Øgreid (pictured) and focuses on credit risk in its mandate. The companies we focus on have profitable business models, stable prospects and good framework conditions for the future.

Value management

The Fund’s exposure to the fixed income market will primarily be achieved through direct investments in corporate bonds, government bonds, convertible bonds and other debt securities. Regardless of the credit rating, the manager will always make its own assessment of each individual investment. The choice of investments will mainly be based on cash flow analysis and the companies’ balance sheets. The fund has no restrictions on the maturity of individual bonds or the portfolio as a whole. Despite this, under normal market conditions, the fund intends to maintain an average maturity of around three years for the portfolio. The interest rate duration will normally be less than two years. Floating loans will give the Fund minimal interest rate risk.

Strategy – how to create excess returns?

Active Management is the foundation of the fund’s quest for excess returns. In asset management, it is important to have a thorough understanding of the loan documents and the structural aspects that can affect the return. This means, among other things, an active repricing of the portfolio. Either by arbitrating the yield curve of the issuer, where different maturities of loans may be mispriced, or mispriced relative to comparable companies. It is equally important to constantly replay and change the portfolio composition, whether the company’s deliveries over time are good or bad, as well as when market conditions change. In conclusion, good management is also based on the ability to take gains and losses when appropriate.

Our mandate

The fund invests primarily in the Nordic market, where we can invest across all sectors. The goal is to construct a portfolio that represents a cross-section of the Nordic economy. The investment philosophy is based on fundamental company analysis together with associated assessments of, among other things, access to equity, sector analysis, potential upside and downside, corporate governance and ownership structure. The portfolio will have an average of around 35-40 different investments. Dividends received from underlying assets are reinvested in the fund. The fund can hold up to 10 percent in cash and up to 10 percent in equities. The fund complies with the rules of the Securities Funds Act for UCITS funds.