About Baltic Horizon
Baltic Horizon Fund (further “BH”) is a regulated closed-end contractual investment fund registered in Estonia on 23 May 2016.
Following a successful capital raising (IPO) Baltic Horizon merged with Baltic Opportunity Fund on 30 June 2016. Baltic Horizon is the remaining entity which took over 5 assets of BOF and its investor base. Trading of Baltic Horizon units on Nasdaq Tallinn Stock Exchange began on 6 July, 2016. Baltic Horizon Fund units are also listed on Nasdaq Stockholm. The first trading day on Nasdaq Stockholm was on 23 December 2016. In total approx. 64 mln of fund units were listed on the exchange.
The Fund is a public fund with no particular lifetime (evergreen). Units of the Fund are made available to the public in accordance with the Fund rules and applicable laws. Please refer to registered and approved by the FSA Fund Rules of Baltic Horizon Fund.
Management Company
Northern Horizon Capital AS is the Management Company (AIFM) of the Fund. Both the Fund and the Management Company are supervised by Estonian Financial Supervisory Authority. Northern Horizon Capital AS is part of Northern Horizon group headquartered in Copenhagen Denmark.
Northern Horizon Capital, the Management Company of the Fund is an experienced investment manager focusing on specialized real asset investment strategies in Northern Europe. The Management Company is the result of a merger in 2011 between BPT Asset Management and Evli Property Investments and has approx. 50 employees. Northern Horizon group currently manages 8 real estate funds across the Baltic sea region. Total assets under Northern Horizon management exceed 1,2 billion EUR.
For more information Northern Horizon refer to nh-cap.com website.
Structure and Governance
BH is a tax transparent and cost efficient vehicle. Management fee is linked to the market capitalization of the tradable units. It is also imbedded in the Fund Rules that the management fee will decrease from 1,5% to as low as 0,5% from the market capitalization as Fund’s assets grow.
BH operates under the REIT concept where vast majority of Fund’s cash earnings are paid and only 20% can be reinvested.
The Fund is managed by the Management Company which is Northern Horizon Capital AS. The immediate team comprises of the Management Board and the Supervisory Board of the Management Company. The Fund also has its Supervisory Board.
Financial objectives
12-15 ROE p.a.
7-9% distribution p.a.
50% leverage target
Risk management
Risk management is essential part of our business. The Management Board considers that a key factor of AIFM’s ability to create sustainable value is the risk that AIFM is willing to take and its ability to manage then effectively. Many risks exist in the Fund’s operating environment and continuously emerge on a daily basis. Risk management function activities do not aim to eliminate them except operational risks. The risk management and compliance functions instead focus on ensuring that these risks are known and are addressed through risk management process. All operative risks shall be minimized and only those business risks which are reasonably quantifiable and manageable will be taken. More on our risk management process can be found in the Fund Rules.
Jurisdiction
The Fund and the Management Company operate under the laws of Estonia and any disputes regarding rights and obligations under the Fund Rules and regarding the operations of the Management Company thereunder shall be resolved in the courts of Estonia.