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 Nordic Investment Grade is a UCITS credit fund that invests primarily in the Nordics. The fund only invests in bonds issued by companies with an Investment Grade credit metrics (AAA til BBB-). Weighted average for the fund per today is BBB+. Both interest rate duration and credit duration (tenor) must be less than five years and focus on high liquidity and low volatility. 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.