GKAM said the Luxembourg-domiciled fund will invest mainly in bonds with an initial focus on issues by companies based in Denmark, Norway, Sweden and Finland.
It is a sub-fund to the existing Glendevon King Global Fund Sicav-Sif and will seek to emulate the success of the Global Bond Fund I, which was launched a year ago.
The long cash part of the fund will be made up of corporate and government bonds, with issuers selected through a bottom-up approach.
Derivatives, futures and options on bonds, interest rates and equity indices will also be used in an attempt to manage risk.
The reporting currency of the fund will be the Norwegian krone and initial exposure to Nordic investments will be no less than 80%.
GKAM said the management believed there was significant potential for krone to further appreciate against major currencies such as the dollar, euro and Swiss franc.
The fund is managed by Yannick Naud, who has been running the Nordic strategy within GKAM’s existing portfolios since 2009. He joined the firm in 2008 from Dresdner Kleinwort where he was MD and head of high yield and convertibles.
Naud said: "We are delighted to launch what we believe is the first Sicav-Sif 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."
