Investment philosophy

Investment philosophy

 Our investment philosophy focuses on achieving absolute returns.

Through an investment process built on thorough proprietary analysis and in-house developed credit model, we are looking for attractive credit papers, mainly in the Nordic credit market.

Our company analysis includes analysis of, among other things, the business model, market position, product and service offerings, profitability, as well as risk and ESG factors. We are particularly concerned with uncovering downside risk, both operationally and financially.

The fund actively managed through the choice of credits and not through trading. We are mainly active in the primary market for bond issues and have good diversification on sectors with an estimated around 70 different positions. We continuously focus on risk/reward in the market to achieve positive absolute returns.

 

 

Arctic High Return is a UCITS credit fund that invests in high yield bonds and targets an annual return of 5-6%. The fund invests primarily in companies in the Nordic high yield universe with a focus on absolute return. We aim towards the better part of the high yield segment with a weighted average for the fund around BB-/B+. Interest rate duration for the fund must be less than three years and credit duration (tenor) will be less than five years. The reference index is OSE’s 3 month Government certificate index (ST1X). The fund managers have a strong track record and extensive experience.

Past performance in the fund is no guarantee for future returns. Future returns depend on the market, fund manager skill, fund risk level, costs, among others. Performance in the fund may at times be negative and may vary within periods.