Glendevon King Asset Management (GKAM), the independent fixed income boutique, has launched a Norwegian Krone Class (NOK) in its new Global Bond Fund II with an initial focus on Nordic absolute return credit opportunities.
The Fund will invest mainly in bonds with an initial focus on issues by companies based in Denmark, Norway, Sweden, and Finland. Sitting as a sub-fund to the existing Glendevon King Global Fund SICAV-SIV, the Fund is seeking to emulate the success of Global Bond Fund I in the SICAV-SIF, launched a year ago.
The Fund will consist of a long cash part made up of corporate and/or government bonds. The selection of the issuers will be mainly based on a bottom-up approach that takes into account fundamental balance sheet data and ratios on a spot and trend analysis. Additionally, the Fund will trade an overlay of derivatives as well as using futures and/or options on bonds, interest rates and equity indexes to actively manage risks.
The reporting currency of the NOK class will be NOK and the initial exposure of the NOK class will be no less than 80% to Nordic investments. The management believes there is significant potential for NOK to further appreciate against major currencies such as the US dollar, Euro and Swiss Franc.
The Fund offers a minimum subscription of NOK 4 million (approximately EUR518,000).
GKAM is an experienced Nordic specialist, having existing trading lines with most of the local bond originators and liquidity providers. The Fund’s lead manager is Yannick Naud, who has been running a Nordic strategy within GKAM’s existing portfolios since 2009. Yannick joined GKAM in 2008 from Dresdner Kleinwort where he was Managing Director and Head of High Yield & Convertibles.
Yannick Naud (pictured), Portfolio Manager, says: “We are delighted to launch what we believe is the first SICAF-SIV strategy in a NOK class with a focus at launch on absolute return Nordic credit opportunities. The Fund was born out of strong demand from investors to separate corporate risk from country risk, and offers a very good opportunity for protection and growth against the deepening European sovereign debt crisis.
“Nordic countries are considered among the safest in the world for investment, with stable economic climates, low sovereign risk and for some of them higher interest rates. There is also now a deep and diversified credit market in local currencies, with companies linked to attractive sectors such as oil, gas, agriculture and technology.”