The Nordic Credit Market

Why we invest in the Nordics

The Nordic Credit Market

The Nordic region is a region with a strong legal framework, effective institutions. In general, there is also good corporate governance, which contributes to opportunities for good long-term returns.

The relatively small, open and flexible economies we have in the Nordic region have provided a fruitful breeding ground for highly competitive companies with strong innovation capability and adaptability to new technology.

The Nordic credit market offers many investment opportunities across many sectors, which allows for good diversification. However, this requires that one must have resources and expertise on credit rating, as publicly approved credit rating agencies generally have little coverage in the Nordic market.

 

 

 

Arctic Return is a UCITS crossover credit fund that invests primarily in the Nordics. A minimum of 70% of the portfolio must consist of bonds with Investment Grade credit metrics. Weighted average rating per today is BBB-. The interest duration of the fund must be less than one year and the credit duration (average tenor) must be less than four years. Key focus is high liquidity and low volatility for the fund as a whole and thus the high yield part of the portfolio is generally in the short end of the curve. 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.