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AA-rated bond manager handed Nordic HY fund

AA-rated bond manager handed Nordic HY fund

Carnegie Fonder has handed a new Nordic-focused high yield fund to Citywire AA-rated Niklas Edman and his co-manager Maria Andersson, Citywire Selector can reveal.

Soft-launched on November 2, the Carnegie High Yield Select fund is focused on tapping strong yield plays in the Nordic region, with a focus on small- and mid-cap bond issuers.

The duo currently manage over €1.5 billion in assets focused on the Nordic high yield market, which is through the Carnegie Corporate Bond and Carnegie Strategifond funds.

This new approach both builds on and differs from existing strategies, according to Edman. He told Citywire Selector: ‘We stick to our bottom-up approach, focusing on solid companies that we expect to perform in the long term.

‘However, given the strong market we have seen with elevated risk appetite and spreads tightening we acknowledge the increased market risk going forward and therefore we aim to keep credit duration low, i.e. around three years.

‘The fund mandate is agile and we could easily increase the share of larger issuers with longer maturities and fixed coupons if we see the market normalize at a point in the future.’

Edman said the fund would have limited exposure to companies directly dependent on the oil price or commodities. In addition, Carnegie Fonder’s relatively large size in the Nordic market means the duo will get favourable treatment during primary issuance.

Commenting on fund focus, Edman said the fund was structured to allow greater allocation to smaller issuers representing a larger active share of the fund. This emphasis means Carnegie Fonder has capped the size of the fund to SEK 2-3 billion (€200-300 million).

The fund is currently registered for sale in Sweden, Norway, Finland and Switzerland.

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