Stockholm (HedgeNordic) – Three years after its reclassification as a fixed-income fund, Atlant Stability has earned its first assessment from Morningstar’s grading system, achieving a four-star rating. Despite employing a similar fixed-income strategy that incorporates derivatives, Atlant Fonder’s second-largest fund was reclassified from an “alternative” to a “fixed-income” fund in Morningstar’s strategy classification three years ago and has now reached the three-year milestone to receive its first star rating.
Atlant Stability follows the path of Atlant Fonder’s younger fund, Atlant Högräntefond, which was the first in the product range to qualify for Morningstar’s star grading, earning a five-star rating. Launched in March 2021, Atlant Högräntefond is an actively managed fixed-income fund with a focus on Nordic corporate bonds with short to medium maturities. Atlant Stability operates as an actively managed fixed-income fund that primarily focuses on higher-quality corporate bonds, while also using derivatives to manage duration risk and hedge against interest rate fluctuations.
“Stability has been around since 2008 and was categorized as an alternative fund until we chose to reclassify it into the broader fixed-income category three years ago,” explains the team at Atlant Fonder. Atlant Stability ranks among the top seven funds in its Morningstar category for SEK-denominated fixed income over three years and the top five over five years. “We believe a five-year comparison is also relevant, as we have managed Stability consistently in the same manner, even before the reclassification.”
Founded and managed by head portfolio manager Anders Kullberg, joined by portfolio managers Taner Pikdöken (pictured left) in 2016 and Nikos Georgelis (pictured right) in 2018, Atlant Stability has generated an annualized return of 3.1 percent since launching its launch in 2008. The performance has been achieved with an annualized volatility in returns of just 2.5 percent, resulting in a Sharpe ratio exceeding one. “This relatively low-risk fund offers good opportunities for a return that is higher than in a traditional fixed-income investment,” highlights the team at Atlant Fonder.
Atlant Stability enjoyed 14 consecutive years of positive performance until a slight decline of 2.8 percent in 2022. The fund rebounded with a 6.0 percent gain in 2023 and an additional 6.4 percent year-to-date through the end of October. Atlant Stability manages SEK 1.47 billion in assets as of the end of September, representing 16 percent of Atlant Fonder’s total assets under management of SEK 8.9 billion. Stability is the second-largest fund in the boutique’s lineup, following Atlant Opportunity, which manages SEK 6.4 billion.
