Kraft Høyrente was launched in August 2019 and just over six months later, more than half a billion kroner has been invested in the fund. On 26 February, the AUM measured NOK 571 million. On average, approximately NOK 100 million has been invested in the fund each month.
The great willingness to invest in the fund can of course be related to the return the fund has delivered - and not least the history of the fund's manager, Øivind Thorstensen.
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The fund is in risk class 2 (2 out of 7), but has delivered a return of 4.46 per cent* since inception. In terms of return, no other Norwegian high-yield fund has done as well.
- We are very pleased with the start the fund has had and it's nice that customers also seem to be very satisfied," says Thorstensen.
High activity in active management
He has 17 years' experience from some of London's largest asset management companies and in recent years has been one of Norway's most successful fixed income managers. Thorstensen has a clear management philosophy and what distinguishes him from many other managers is the degree of activity he puts into his management. In addition to the actual portfolio management, he is always on the lookout for other opportunities in the market.
- Put simply, it's about buying cheap from one party and selling more expensive to another. "We do this by taking positions that the big players think are too small and which therefore end up being overlooked. In addition, we are very active in the issue market," says Thorstensen.
Here you can read more about investing surplus liquidity
He is prepared to use all the tools in his toolbox to ensure the best possible return for his customers within the fund's mandate.
- "We will continue to deliver good results, but in order to succeed with a high degree of active management, we must have as much room for manoeuvre as possible and use all available tools. To ensure this room for manoeuvre, it may be necessary to close the fund when it reaches a certain size," says Thorstensen.
Satisfied director
The CEO of Kraft Finans, Sveinung Byberg, is also very pleased with the start of Kraft Høyrente.
- We believed that Kraft Høyrente would fit in well with our other product range, and this has proved to be the case. Customers have been very receptive to the fund. It's nice to be able to offer them a good alternative to high-interest accounts with the banks. The CEO of Kraft Finans, Sveinung Byberg, is pleased that customers have welcomed Kraft Høyrente.
Security, good returns and liquidity
He emphasises that Kraft Høyrente is particularly popular with companies with surplus liquidity in their bank accounts. For them, there are usually three recurring preferences;
- Kraft Høyrente is a good tool for companies that want better earnings on their surplus liquidity. This is money that is not normally needed for day-to-day operations. This money loses value if it remains in a high-interest account," says Byberg.
A good alternative to a savings account
Sveinung Byberg, CEO of Kraft Finans, is pleased that Kraft Høyrente has got off to a good start.
Close the fund?
If investments in the fund continue at the same level as today, the fund will reach NOK 1 billion by the summer. The fund will then probably be closed to new investments.
- In order for us to continue to succeed in delivering good returns, it is important to have room for manoeuvre. We lose this if the fund becomes too large. It's all about the best possible risk-adjusted return for our customers," concludes Thorstensen.
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* Return per 26 February 2020.
