Nordic group Absalon Capital has entered Spain with a pair of unconstrained credit strategies, Spanish financial website FundsPeople revealed.
The two funds are the Absalon Global High Yield and the Absalon Emerging Corporate Debt, which operate as benchmark-agnostic fixed income funds.
The Absalon Global High Yield aims at building a portfolio with an above average yield at below average prices focusing on out-of-favour areas of the market where the risk of default is often overestimated, but where the issuer is on a stable/improving trend.
A large percentage of the portfolio will be invested outside the index. According to the firm, this approach has historically produced superior returns with substantially lower default rates when compared to a passive or more index-orientated approach and provides investors with genuine diversification benefits.
The team aims to deliver an annual outperformance relative to the Bank of America ML Global High Yield Index (Euro hedged) over the cycle (3-5 years). This outperformance is designed to be principally driven by bottom up credit selection as duration is managed with a preference to be +/- 1 year of the index.
The Absalon Emerging Corporate Debt strategy adopts a similar investment philosophy as the Absalon Global High Yield fund with a distinct focus on value which is then adapted to reflect the broader scope of the emerging market debt universe (investment grade and high yield).
The team aims to deliver an annual outperformance relative to the JP Morgan CEMBI BD (Euro hedged) over the cycle (3-5 years). This outperformance is designed to be principally driven by bottom up credit selection as duration is managed with a preference to be +/- 1 year of the index.
Both strategies, with €110m in assets under management each of them, are managed by the Absalon Corporate Credit team, formed in 2006.
It is led byKlaus Blaabjerg, head of Credit, chief portfolio manager, who works alongside chief portfolio manager Sune Højholt Jensen; Toke Katborg Hjortshøj, senior portfolio manager; and Peter Dabros, senior portfolio manager too.
The team owns 35% of the equity of their business which according to the firm, ensures an alignment of interests between the team and their investors.