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CrossingBridge Nordic High Income Bond Fund in registration

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  • edited October 3
    https://www.lazardassetmanagement.com/ie/en_uk/funds/ucits-funds/lazard-nordic-high-yield-bond-fund/f4941/s319/

    The above link is the Nordic High Yield bond fund offered by Lazard. Inception date was November 2, 2022, It has annualized return since then of 10.37%. Can’t argue with that. I would expect similar results from the Nordic fund offered by CrossingBridge.

    A few caveats. The Lazard fund could not have had a more opportune time to come out. The bear market in equities and junk bonds had just bottomed in October 2022. Another caveat is a huge downturn in equites because of a perceived recession would not be kind to junk bonds, here there or anywhere,

    CrossingBridge as we know is an excellent shop with a stable of great funds known for their persistency of trend. I don’t see why their new fund should be any different. I hear all the time that European credit including the Nordic countries is undervalued. I don’t intend to participate to any large degree unless this thing comes roaring out of the gate. There have been so many opportunities recently in domestic bonds where you have had 5%+ returns the past three months. Of course that all could evaporate if the current spike in oil continues unabated,
  • Anyone have info on the level of volatility of Nordic bonds when Russia invaded Ukraine?
  • edited October 3
    Located another fund that invests in Nordic HY going back a few years - they are located in Finland. Nice returns....

    imageimage
  • edited October 4
    here's a chart for the fund junkster refers to. the fund did indeed open at the most opportune of times.

    image
  • Nice finds @JD_co and @linter. Thanks for sharing.
  • edited October 4
    In response to several comments made in the discussion board:

    CrossingBridge Nordic High Income Fund (“NRDCX”) intends to make monthly distributions.

    The Fund was internally seeded by CrossingBridge and/or affiliates with $2MM. According to Bloomberg, NRDCX now has $9.57MM in AUM

    Although NRDCX may seem a novelty to US centric investors, Nordic High Yield bond funds in the form of UCITs (European mutual find structures) are “alive & well”
    A list of the top 50 UCITs focused on Nordic High Yield sourced by our DNB institutional salesman indicated over USD$20 billion in AUM on August 31, 2024 which represent around 1/3 of the estimated market size of the Nordic High Yield Bond Market (deemed below investment grade).

    Fidelity platform is expected to be alive by Monday per John Conner but feel free to call customer service to complain.

    If you have any additional comments or questions, please feel free to e-mail [email protected]
  • Trade at Schwab went through yesterday.
  • are any of these other funds available in our regular brokerages to invest with regular commissions/ transaction fees? If not, pl share US based competitors to NRDCX that we can invest.
  • Thanks David for the answers.
  • BaluBalu and others:

    To the best of my knowledge there are no US mutual funds or ETFs dedicated to investing in the Nordic bond high-yield market. The 50 funds mentioned are all overseas UCITs
  • edited October 4

    BaluBalu and others:

    To the best of my knowledge there are no US mutual funds or ETFs dedicated to investing in the Nordic bond high-yield market. The 50 funds mentioned are all overseas UCITs

    Thanks David for confirming. Look forward to NRDCX’s success.

  • NRDCX is now available at FIDO.

    $5K min, plus a $49.95 trading fee.
  • NRDCX is now showing up at Vanguard but doesn’t show minimum investment yet.
  • edited October 5
    Per John Conner, when I asked about projected yield, he answered it will be based on the securities purchased. Of course it is, but he also said it is generally 1.5-2% over US companies. So I am guessing around 9%+ yield, if using CBLDX and RSIIX as the basis. If using OSTIX then maybe 8%+.
  • Since I am already a satisfied owner of CBLDX, I'm wondering how much overlap there will be between the new fund, NRDCX, and CBLDX. According to the Q2 2024 commentary, CBLDX contained 27.3% international holdings. I am assuming that consists mainly of Nordic companies.

    My question then becomes, "Does CBLDX already function as a global high income fund that incorporates the best US and Int'l ideas from the CrossingBridge investment team?" If so, is NRDCX therefore redundant and unnecessary for me to add to my portfolio?
  • edited October 5

    According to the Q2 2024 commentary, CBLDX contained 27.3% international holdings. I am assuming that consists mainly of Nordic companies.

    My question then becomes, "Does CBLDX already function as a global high income fund that incorporates the best US and Int'l ideas from the CrossingBridge investment team?" If so, is NRDCX therefore redundant and unnecessary for me to add to my portfolio?


    If my math is correct, CBLDX held only 0.5% Norway (NOK) plus 3.7% Sweden (SEK) securities based on 2Q 2024 holdings. I cannot say if there are any EUR or USD based Nordic investments buried in there, too.

  • To the extent CrossingBridge funds have foreign exposure (non-US), the issuers are likely to be predominately from Canada, Europe, and Australia. The Nordics may be only a portion of the foreign exposure.

    On June 30, 2024, the Nordic bond exposure was approximately 13% in CrossingBridge Low Duration (CBLDX) funds. These bonds may be denominated in NOK, SEK, EUR, GBP, or USD. The Nordic bonds were identified as originated out of the Nordic market but could be companies based outside the Nordics. I trust this clarifies the matter.

    Please note that further communication on the CrossingBridge Nordic High Income Bond Fund (NRDCX) may be limited as the discussion board is not always a good medium for communication. I encourage folks to reach out to [email protected] with questions.
  • Thank you Mr. Sherman for taking time away from your weekend respite to respond to my question. I apologize and in no way expected you to comment. It is a pure joy, however, when you do. Thank you for taking pride and ownership in your work.
  • I checked some of the Nordic HY bond UCIT funds that were mentioned, e.g., Pareto, DNB, etc. They hold mostly floating rate bonds. Success of these bonds are usually associated with periods of rising rates. Is it possible that we're late to the party, since rates have peaked and are now anticipated to decrease?
  • edited October 6
    chang said:

    I checked some of the Nordic HY bond UCIT funds that were mentioned, e.g., Pareto, DNB, etc. They hold mostly floating rate bonds. Success of these bonds are usually associated with periods of rising rates. Is it possible that we're late to the party, since rates have peaked and are now anticipated to decrease?

    The October issue of MFO has a good writeup on NORDX. Floating rate over there is not quite the same as here. It seems the majority of loans (residential and commercial) are FR.

    This is a Nordic bond fund, not a FR bond fund.

  • Anyone know if the fund will hedge foreign currency movement against the USD? (Hopefully not.)
  • @chang,

    The fund hedged the currency being invested. Professor Snowball provided a detailed write up on this fund on October’s commentary.
    The fund will hedge its currency exposure with one- to three-month forward currency swaps.
    https://mutualfundobserver.com/2024/10/launch-alert-crossingbridge-nordic-high-income-bond-fund/#more-19947
  • I've been purchasing RSIIX for our IRA and Joint accounts through our TRP Brokerage accounts without a fee, but TRP, at least for now, is charging a $35 fee to purchase NRDCX. Any ideas on whether the fee eventually goes away? Is this normal when a new fund is introduced on a brokerage platform?
  • Each brokerage has different policy / agreement with the specific mutual fund companies. You may want to call TRP directly.

    I am surprised that RSIIX, an institutional shares, is on the T. Rowe Price’s no-transaction fee platform. Apparently, CrossingBridge does not have the same agreement.
  • M* shows $5k minimum to get into NRDCX. Schwab shows $2.5k. And $1k for IRA. But there's a $49.95 fee.
  • Purchased 2000 shares through Vanguard. There was no fee.
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