Skagen Credit, which is domiciled in Norway, was launched last Friday and currently contains £10m.
The Scandinavian mutual fund company said the fund will invest in “undervalued, under-research and unpopular” corporate bonds from around the world.
The fund’s primary source of return will come from selecting corporate bonds that have the potential for a price change or those that have a high stable running yield relative to the risk they entail.
Skagen Credit, which includes a 0.8% annual management fee and has a minimum initial investment of £90, is classified as a master feeder fund and has four funds feeding into it.
It will be managed by Ola Sjöstrand, who has also been in charge of the Norweigan money market funds Skagen Høyrente, Skagen Høyrente Institusjon and the Swedish money market fund Skagen Krona since joining the company in 2006.
It will be co-managed by Tomas Middelthon, who has been a portfolio manager of the Sjostrand’s money market funds for the past two and a half years.
The fund is denominated and fully-hedged in different currencies so that unit holders will not be exposed to exchange rate risk.
On the fund, Skagen said: “Investors should have a minimum investment horizon of two years to capture long-term income and price appreciation, while allowing for modest short-term price volatility.”
Skagen Funds is a Scandinavian mutual fund company founded in 1993 and headquartered in Stavanger, Norway. The company manages three equity funds and five fixed income funds.
