NCP 3

0MKR
AUM
0-9%
yearly return target

NCP III started December 2017 and have a bond portfolio of c. SEK 1,500m, with a return target of 7-9% p.a. to investors. The fund primarily invest in Nordic high yield bonds. NCP III have a closed-end structure, which means that it doesn’t take in any new capital, or that investors can withdraw capital, until the maturity of the fund in December 2022. Though Investors can trade the debentures in the OTC market under ISIN SE0010521104. As with NCP’s other funds, NCP III have a significant focus on ESG and you can find more information below or here.

Jan.  Feb.  Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Return 1,2% 1,7%
NAV 9 619 9 787
Jan.  Feb.  Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Return 1,7% 0,1% -34,7% 2,6% 5,8% 10,9% 3,9% 6,5% 2,0% 0,7% 3,2% 1,3%
NAV 10 170 10 184 6 652 6 823 7 217 8 003 8 313 8 853 9 032 9 093 9 385 9 504
0%
Yearly return
Jan.  Feb.  Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Return 1,5% 1,1% 0,9% 1,4% 0,3% 0,1% 1,0% -0,4% 1,2% 0,8% 0,8% 1,8%
NAV 10 150 10 258 10 351 10 500 10 532 10 545 10 650 10 611 10 738 10 827 10 915 11 111
0%
Yearly return
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Return – 0,07% 1,01% 0,92% 1,33% – 0,15% 0,85% 0,17% 0,84% 0,74% 0,44% – 0,25% -0,20%
NAV 9 993 10 093 10 186 10 321 10 305 10 393 10 411 10 498 10 575 10 622 10 596 10 574
Return NAV
Jan. 1,2% 9 619
Feb. 1,7% 9 787
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
Return NAV
Jan. 1,7% 10 170
Feb. 0,1% 10 184
Mar. -34,7% 6 652
Apr. 2,6% 6 823
May 5,8% 7 217
Jun. 10,9% 8 003
Jul. 3,9% 8 313
Aug. 6,5% 8 853
Sep. 2,0% 9 032
Oct. 0,7% 9 093
Nov. 3,2% 9 385
Dec. 1,3% 9 504
0%
Yearly return
Return NAV
Jan. 1,5% 10 150
Feb. 1,1% 10 258
Mar. 0,9% 10 351
Apr. 1,4% 10 500
May 0,3% 10 532
Jun. 0,1% 10 545
Jul. 1,0% 10 650
Aug. -0,4% 10 611
Sep. 1,2% 10 738
Oct. 0,8% 10 827
Nov. 0,8% 10 915
Dec. 1,8% 11 111
0%
Yearly return
Return NAV
Jan. – 0,07% 9 993
Feb. 1,01% 10 093
Mar. 0,92% 10 186
Apr. 1,33% 10 321
May – 0,15% 10 305
Jun. 0,85% 10 393
Jul. 0,17% 10 411
Aug 0,84% 10 498
Sep. 0,74% 10 575
Oct. 0,44% 10 622
Nov. – 0,25% 10 596
Dec. -0,20% 10 574

‘Sustainability-related disclosures’

Summary

NCP’s strategy to promote ESG characteristics covers all AUM with the conviction that by integrating sustainability into our investment’s thesis, we will benefit our long-term investors and contribute to the development of sustainability in society at large.

The fund promotes ESG characteristics that are both industry specific ESG factors based on SASB’s Industry Standards, as well as company specific ESG factors that have been identified through research by our ESG specialist.

The methodology that NCP employs to measure the attainment of the ESG characteristics promoted by the fund involves qualitative analysis of the issuer’s or portfolio company’s management systems and integration of ESG characteristics and ESG risks in the operational practices. The company needs to be able to demonstrate that it has a strong understanding of its exposure to ESG risks as well as understand its impact on the environment and the society. In addition to this, the company must have a strong mitigation strategy in place to reduce its exposure to risks and possible adverse impact on sustainability factors.

We attain information from various sources. These are the issuer themselves, any third-party verification or opinion as well as semi-annual in-depth screening from an external data provider covering compliance with the UN Global Compact as well as product involvement.

No sustainable investment objective

This financial product promotes environmental, social and good governance characteristics but does not have as its objective a sustainable investment.

Environmental or social characteristics of the financial product

Below is a list of environmental and social characteristics that the Fund promotes through ensuring portfolio companies’ solid management approach on the listed characteristics. All characteristics are not applicable for each investment. Instead, the characteristics applicable for a certain investment are selected using the materiality-principle. We are constantly developing our approach and adding characteristics to the list.

Environmental characteristics

  • Reduction of Greenhouse gas Emissions
  • Improvement of Air Quality
  • Energy management
  • Water management
  • Waste management
  • Sustainable Materials sourcing
  • Mitigation of Product Lifecycle Environmental impacts
  • Reduction of Impacts on biodiversity
  • Climate Change Adaptation

Social characteristics

  • Diversity and inclusion
  • Good Labour practices
  • Human Rights
  • Employee health and Safety
  • Customer health and safety
  • Data privacy
  • Data Security
  • Ethical Marketing & selling practices
  • Animal Welfare

Investment strategy

NCP has two strategies when investing responsibly. The first strategy involves targeting issuers that have a mature sustainability strategy that is aligned with their business model. Under this strategy, we will not invest in issuers that do not meet our minimum ESG thresholds, regardless of their financial performance. The second strategy entails investing in issuers with a less mature sustainability strategy but with a commitment to develop a clear, ambitious, and quantitative action plan to transition into a sustainable company. This transition bond strategy involves NCP as an active partner and a support to the company in their advancement.

The strategy for assessing a company’s governance practices is thoroughly integrated in the overall investment strategy. The investment decision-making process involves scrutinizing issuers’ management of, or approach to, board structure, anti-corruption, anti-competitive behaviour, executive pay, tax, and transparency.

We exclude investments in companies operating in specific sectors or business areas that are deemed to meet major sustainability challenges. We also refrain from investing in companies engaged in activities that violate international guidelines and conventions. All NCP funds comply with our basic sustainability criteria and therefore do not invest in companies that are active within oil and gas, the weapon industry, pornography, tobacco, gambling, have more than 10 percent from alcohol sales or is in violation of international norms and standards.

If we receive signals that a company does not live up to our expectations, we encourage and support the company to develop measures to meet our expectations. In that way we can impact the market to become more sustainable.

You can find more information about our investment strategy for products that promote environmental or social characteristics here.

Proportion of investments

NCP’s investment strategy is focused on companies with strong cash flows, solid balance sheet, experienced management team and professional owners. We invest across most sectors in the Nordic region but refrain from investing in companies that are dependent on one single exogenous factor such as oil & gas.

Each investment is evaluated on its own merits, but we also consider the total portfolio composition to ensure diversification with regards to sectors, geographies, markets and risk level. Each investment requires a unanimous approval from the investment committee.

The fund primarily invests in Nordic high yield bonds. NCP III have a closed-end structure, which means that it does not take in any new capital, or that investors can withdraw capital, until the maturity of the fund in December 2022. NCP III started December 2017 and have a bond portfolio of c. SEK 1,500m, with a return target of 7-9% p.a. to investors.

NCP’s strategy to promote ESG characteristics covers all AUM with the conviction that by integrating sustainability into our investment thesis, we will benefit our long-term investors and contribute to the development of sustainability in society at large.

All investments constitute direct exposure in investee entities.

Monitoring of environmental or social characteristics

All portfolio companies agree to provide ESG reporting during the tenor of the bond. The companies we invest in are typically in the small to midcap segment and as such we maintain direct access to management and keep an ongoing dialogue. NCP also holds quarterly management meetings with the portfolio companies were ESG developments are discussed as well as semi-annual in-depth screening to identify any issues from an ESG perspective.

Methodologies

The NCP methodology to measure the attainment of the ESG characteristics that the fund promotes, entails continuous qualitative analysis of the portfolio company’s management systems and integration of ESG characteristics and ESG risks in the operational practices. This process requires the issuer to report according to the NCP ESG disclosure list, outlining industry and company specific factors as well as broad ESG factors. The issuer needs to provide this reporting during the tenor of the bond.

The indicators used to measure the attainment of the ESG characteristics include that the companies have developed sophisticated and comprehensive management strategies for their specific material ESG factors as well as having set clear and ambitious targets to reduce negative impact on the environment and society.

Data sources and processing

The data sources used to attain each of the ESG characteristics promoted in NCP III consists of reports from the issuer themselves, any third-party verification or opinion, a semi-annual in-depth screening from an external research provider covering compliance with the UN Global Compact as well as product involvement. The data is then processed through qualitative analysis and NCP Due Diligence and monitoring processes. No data is estimated. We currently rely on the good data quality of our data providers.

Limitations to methodologies and data

The limitations to the NCP methodologies for assessing and measuring the attainment of the ESG characteristics promoted by the fund includes the restricted capacity to analyse a larger number of quantitative indicators due to our small team. We are an investment team of three people with one portfolio manager dedicated to ESG analysis. Instead, NCP has developed its methodology based on the quality of the companies’ management systems of the material ESG characteristics as a proxy for the quantitative indicators.

Due diligence

NCP employs a thorough Due Diligence process for integrating sustainability risks into the investment decision-making process. The process requires all issuers to respond to a set of ESG questions on industry and company specific factors and broad ESG factors as well as agreeing to provide ESG reporting during the tenor of the bond. The industry specific ESG factors are based on SASB’s Industry Standards and the company specific ESG factors are identified through research by our ESG specialist. These material ESG factors also constitute the main sustainability risks for each company. The company needs to be able to demonstrate that it has a strong understanding of its exposure to these risks and its impact on the environment and society. This includes, but is not limited to, having a solid approach to identifying, managing, and monitoring the company’s specific material ESG factors as well as setting clear and ambitious targets to reduce negative impact on the environment and society.

All NCP funds comply with our basic sustainability criteria and therefore do not invest in companies engaged in activities that violate international guidelines and conventions or companies that are active within oil and gas, the weapon industry, pornography, tobacco, gambling, or have more than 10 percent from alcohol sales.

Engagement policies

We believe in active ownership and view every investment as a partnership. As a credit investor we contribute to the development of leading and sustainable enterprises and act as a constructive partner to shareholders, management, and employees.

Through our role as an active investor, we strive to encourage companies in their sustainability advancements, thereby encouraging change and safeguarding the interests of our investors as well as promoting sustainable business.
The companies we invest in are typically in the small to midcap segment. As a result, we can have a direct access to management, and we choose to limit the number of holdings as much as possible without increasing the concentration risk significantly. This allows us to spend more time analysing each credit both before investment and through the monitoring phase, which gives us a better chance of staying one step ahead of the rest of the market.

As an active manager, NCP takes a position on sustainability factors. This is done partly in the portfolio managers’ ongoing work, partly in the Board and Investment Committee and in the dialogue with our industry advisors. The Board, the Investment Committee as well as the Sustainability Council regularly discusses sustainability factors and quality assures the managers’ sustainability analysis. It is the responsibility of the Head of Sustainable Investing to keep the managers well educated on these matters.

NCP also has quarterly management meetings with all portfolio companies as well as semi-annual in-depth screenings to identify any issues from an ESG perspective.

If we receive signals that the company does not live up to our expectations, the following process is initiated:

  1. Portfolio manager seeks more information
  2. Portfolio manager contacts the company to gain further information
  3. Head of sustainable investing analyses the information to determine if a formal engagement should be initiated
  4. Portfolio manager discusses the holding with the investment committee
  5. NCP’s CEO makes a more formal contact with the company’s CEO or chairman of the board
  6. Consultation with other owners for a joint ownership dialogue

News from Cision

  • Nordic Credit Partners Fund III AB (publ) offentliggör substansvärde
    on 9 April, 2021

    Nordic Credit Partners Fund III AB (publ) (”NCP III” eller ”Fonden”) offentliggör idag att substansvärdet för bolagets emitterade kapital- och vinstandelslån (”Andelslånen”) uppgick till 9 955 kronor per andel vid marknadens stängning den 31 mars 2021. Andelslånens nettoavkastning sedan start den 20 december 2017 uppgår därmed till 16,6% inklusive utdelningar. Investeringsportföljen är för närvarande fördelad på ca 25 innehav verksamma inom bl.a. bank och finans, media och teknologi, underhåll och service, konsumentvaror, transport, fastigheter och bostadsutveckling. Extern säkerställd

  • Nordic Credit Partners Fund III AB (publ) offentliggör substansvärde
    on 5 March, 2021

    Nordic Credit Partners Fund III AB (publ) (”NCP III” eller ”Fonden”) offentliggör idag att substansvärdet för bolagets emitterade kapital- och vinstandelslån (”Andelslånen”) uppgick till 9 787 kronor per andel vid marknadens stängning den 28 februari 2021. Andelslånens nettoavkastning sedan start den 20 december 2017 uppgår därmed till 14,7% inklusive utdelningar. Investeringsportföljen är för närvarande fördelad på ca 25 innehav verksamma inom bl.a. bank och finans, media och teknologi, underhåll och service, konsumentvaror, transport, fastigheter och bostadsutveckling. Extern

  • Nordic Credit Partners Fund III AB (publ) bokslutskommuniké 2020
    on 26 February, 2021

    Nordic Credit Partners Fund III AB (publ) offentliggör idag bokslutskommuniké för 2020. Bokslutskommunikén publiceras på emittentens hemsida www.ncpgroup.se under fliken Fonder. För ytterligare information, kontakta: Emittentens VD Jakob Eliasson Telefon: 08-23 11 00 e-post: jakob.eliasson@ncpgroup.se Om Emittenten Nordic Credit Partners Fund III AB (publ) är en alternativ investeringsfond som regleras av lagen (2013:561) om förvaltare av alternativa investeringsfonder. Fonden investerar i nordiska högavkastande företagsobligationer och har en löptid begränsad till 5 år.

  • Nordic Credit Partners Fund III AB (publ) offentliggör substansvärde
    on 5 February, 2021

    Nordic Credit Partners Fund III AB (publ) (”NCP III” eller ”Fonden”) offentliggör idag att substansvärdet för bolagets emitterade kapital- och vinstandelslån (”Andelslånen”) uppgick till 9 619 kronor per andel vid marknadens stängning den 31 januari 2021. Andelslånens nettoavkastning sedan start den 20 december 2017 uppgår därmed till 13,0% inklusive utdelningar. Investeringsportföljen är för närvarande fördelad på ca 25 innehav verksamma inom bl.a. bank och finans, media och teknologi, underhåll och service, konsumentvaror, transport, fastigheter och bostadsutveckling. Extern

  • Nordic Credit Partners Fund III AB (publ) offentliggör substansvärde
    on 11 January, 2021

    Nordic Credit Partners Fund III AB (publ) offentliggör idag att substansvärdet för bolagets emitterade kapital- och vinstandelslån (”Andelslånen”) uppgick till 9 504 kronor per andel vid marknadens stängning den 31 december 2020. Andelslånens nettoavkastning sedan start uppgår därmed till 11,9% inklusive utdelningar. Investeringsportföljen är för närvarande fördelad på 27 kärninnehav verksamma inom bl.a. bank och finans, media och teknologi, underhåll och service, konsumentvaror, transport, fastigheter och bostadsutveckling. Extern säkerställd belåning har upptagits för att finansiera

  • Nordic Credit Partners Fund III AB (publ) offentliggör substansvärde
    on 7 December, 2020

    Nordic Credit Partners Fund III AB (publ) offentliggör idag att substansvärdet för bolagets emitterade kapital- och vinstandelslån (”Andelslånen”) uppgick till 9 385 kronor per andel vid marknadens stängning den 30 november 2020. Andelslånens nettoavkastning sedan start uppgår därmed till 10,7% inklusive utdelningar. Investeringsportföljen är för närvarande fördelad på 29 kärninnehav verksamma inom bl.a. bank och finans, media och teknologi, underhåll och service, konsumentvaror, transport, fastigheter och bostadsutveckling. Extern säkerställd belåning har upptagits för att finansiera

  • Nordic Credit Partners Fund III AB (publ) offentliggör substansvärde
    on 6 November, 2020

    Nordic Credit Partners Fund III AB (publ) offentliggör idag att substansvärdet för bolagets emitterade kapital- och vinstandelslån (”Andelslånen”) uppgick till 9 093 kronor per andel vid marknadens stängning den 31 oktober 2020. Fondens nettoavkastning sedan start uppgår därmed till 7,8% inklusive utdelningar. Investeringsportföljen är för närvarande fördelad på 29 kärninnehav verksamma inom bl.a. bank och finans, media och teknologi, underhåll och service, konsumentvaror, transport, fastigheter och bostadsutveckling. Extern säkerställd belåning har upptagits för att finansiera

  • Nordic Credit Partners Fund III AB (publ) offentliggör substansvärde
    on 7 October, 2020

    Nordic Credit Partners Fund III AB (publ) offentliggör idag att substansvärdet för bolagets emitterade kapital- och vinstandelslån (”Andelslånen”) uppgick till 9 032 kronor per andel vid marknadens stängning den 30 september 2020. Fondens nettoavkastning sedan start uppgår därmed till 7,2% inklusive utdelningar. Investeringsportföljen är för närvarande fördelad på 29 kärninnehav verksamma inom bl.a. bank och finans, media och teknologi, underhåll och service, konsumentvaror, transport, fastigheter och bostadsutveckling. Extern säkerställd belåning har upptagits för att finansiera

  • Nordic Credit Partners Fund III AB (publ) offentliggör substansvärde
    on 7 September, 2020

    Nordic Credit Partners Fund III AB (publ) offentliggör idag att substansvärdet för bolagets emitterade kapital- och vinstandelslån (”Andelslånen”) uppgick till 8 853 kronor per andel vid marknadens stängning den 31 augusti 2020. Fondens nettoavkastning sedan start uppgår därmed till 5,4% inklusive utdelningar. Investeringsportföljen är för närvarande fördelad på 30 innehav verksamma inom bl.a. bank och finans, media och teknologi, underhåll och service, konsumentvaror, transport, fastigheter och bostadsutveckling. Extern säkerställd belåning har upptagits för att finansiera

  • Nordic Credit Partners Fund III AB (publ) delårsrapport 1 januari – 30 juni 2020
    on 31 August, 2020

    Nordic Credit Partners Fund III AB (publ) offentliggör idag delårsrapporten för perioden 1 januari – 30 juni 2020. Delårsrapporten publiceras på emittentens hemsida www.ncpgroup.se under fliken Fonder. För ytterligare information, kontakta: Emittentens VD Jakob Eliasson Telefon: 08-23 11 00 e-post: jakob.eliasson@ncpgroup.se Om Emittenten Nordic Credit Partners Fund III AB (publ) är en alternativ investeringsfond som regleras av lagen (2013:561) om förvaltare av alternativa investeringsfonder. Fonden investerar i nordiska högavkastande företagsobligationer och har en löptid

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