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 — from senior secured IG paper to selectively chosen HY issuers — targeting fundamentally sound credits with attractive risk-adjusted returns.
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.
Deep dive on capital structure, governance, and cash flow durability.
Covenants, seniority, collateral, yield-to-worst, refinancing path.
Risk budget, concentration limits, and derivative overlay.
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.