RELATIVE VALUE FIXED INCOME HEDGE FUND

The Asgard Fixed Income Fund is a relative value fixed income hedge fund which dates back to July 2003.

The Fund runs an active and adaptive strategy with the objective to generate a high and consistent long-term absolute risk-adjusted return.

To take full advantage of the financial crisis the Fund has since the beginning of 2008 mainly focused on picking the best risk premiums in short term high quality bond markets.

The Fund mainly invest in yield spreads and takes no or very limited risk on the general level of interest rates. Long interest rate risk is normally hedged with derivatives or short positions in other bonds.

A proprietary model is used to forecast short term expected return on various bond markets and the results are used in a portfolio optimizations model to maximize the Funds expected return subject to various risk limits. All results are used as helpful guidelines for the fund manager and advisor when trades are established. We believe this ensures a high return/risk–ratio.

Due to this nature of the Fund - being long risk premiums - the Fund does correlate slightly positively with risky assets such as equity markets.

The Fund is incorporated on the Cayman Islands and is regulated under the Mutual Funds Law (2009 Revision) of the Cayman Islands.

Performance since inception

ANNUALIZED NET RETURN SHARPE RATIO
14.20% p.a. 1.88

AWARD WINNING FUND

EUROPEAN FOCUS, SCANDINAVIAN BIAS

The Fund invests in European fixed income markets with a bias toward Scandinavian markets (Denmark, Sweden & Norway).

Trading strategies are implemented with long or short positions in high rated government, mortgage, covered or index-linked bonds, using listed and OTC fixed income derivatives for hedging and/or speculative purposes and the use of leverage.

The Fund does not invest in neither corporate debt nor senior debt.

INVESTMENT RESTRICTIONS

Further to the investment restrictions regarding the credit rating of bond related positions and leverage the Fund is governed by restrictions with regard to Value at Risk, interest rate risk and unhedged currency exposure.

SS&C GlobeOp provide the Fund with independent calculations on these figures and report these to the investment manager and investment advisor on a daily basis.

All investment restrictions can be found in the offering document for interested and eligible investors.