Skagen has unveiled a new global corporate bond fund that aims to maximise returns by investing in the corporate debt market.
Dubbed as Skagen Credit, the new Norway-domiciled fund will invest in undervalued, under-researched and unpopular corporate bonds from around the world.
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The fund will be manged by Ola Sjöstrand, who has been managing the firm’s Norwegian and Swedish money market funds, and Tomas Middlethon, who has also been involved in the money market funds.
The fund’s primary source of return will come from corporate bonds that have the potential for a price change or those with a high stable running yield relative to the risk they entail.
It also aims to set up a high conviction and concentrated portfolio that has low exposure to interest rates, and will hedge currency risk.
With a annual management fee of 0.8% and has a minimum initial investment of £90, Skagen Credit is denominated and fully-hedged in different currencies so that unit holders will not be exposed to exchange rate risk.
Additionally, the fund has the flexibility to add value across the market cycle by varying the credit quality and maturity profile, and to invest across sectors, currencies and countries.
