Swedish investment grade and high yield, analyzed bond by bond.
We invest in Swedish investment grade and high-yield bonds across primary and secondary markets. Our process is rooted in issuer selection, curve analysis, cash-flow discipline and active participation in refinancing situations — calculating whether extension spread, roll-down potential and liquidity justify the risk. We do not buy a new issue simply because it is available.
Two strategies. One credit process.
IG Bonds
Senior, high-quality Nordic credits (min. BBB−) and covered bonds. Capital preservation and stable carry through the cycle, targeting 3–5% — the bedrock of Series I & II.
HY Bonds
Selectively chosen Swedish HY issuers (min. BB−) with strong fundamentals, targeting risk-adjusted returns of 6–9%.
A natural hedge, with tactical overrides.
The Swedish high-yield market is structurally dominated by Floating Rate Notes indexed to STIBOR — a natural hedge against rising rates and inflation. We selectively rotate into fixed-rate bonds to lock in elevated yields when we anticipate a peak in the rate cycle.
Discipline encoded in the mandate.
- · Maximum 5% of fund value in any single issuer
- · No more than 20% of an issuer's outstanding bonds
- · 5% primary liquidity buffer in T-bills, CP, covered bonds
- · Active hedging via futures and options
Indicative target allocation across 18 sectors.
Indicative target weights, all fund series. Actual portfolio composition may vary.
A four-tier workflow, top-down to bottom-up.
Identify cycle-resilient sectors with structural tailwinds. We avoid sectors or structures we do not fully understand.
Deep dive on capital structure, governance, management quality and cash-flow durability. We want to understand the business before we own the bond.
Assess extension spread, roll-down potential, liquidity profile and refinancing path. We participate actively when the structure and terms create value.
Risk budget, concentration limits, and derivative overlay. We only take risk that fits the portfolio and is priced to compensate for it.
The golden middle ground between return and fragility.
We aim for a portfolio that takes enough risk to generate attractive returns, while avoiding the fragile credits that periodically damage high-yield portfolios. Our edge is not buying every new issue; it is finding the right risk, the right structure and the right point on the credit curve.
A recurring focus is avoiding permanent capital impairment. When markets turn, we do not want too many skeletons in the closet. Our background in trading and derivatives shapes how we think about curves, liquidity and hedging — we are market operators, not just credit analysts.
"We do not want too many skeletons in the closet when markets turn."
Return targets, benchmarks, and portfolio constraints.
Targets reflect the mandate objectives across our fund series and are not guarantees of future performance. Actual returns will vary with market conditions. Capital at risk.