Financial Investments

Aker has two specialized funds that are seeking out investment opportunities suited to their active management profiles: Converto Capital Fund and the hedge fund AAM Absolute Return Fund. Key to achieving attractive returns is their two highly competent management companies.

The Financial Holdings segment comprises share funds. The funds’ capital is managed by Aker Asset Management and Converto Capital Management. Each is a focused management environment with state-of-the-art expertise in their fields.

Aker Asset Management 
The management company Aker Asset Management is owned by Aker. However, 87 percent of the capital in AAM Absolute Return Fund originates with external investors.

Aker Asset Management established and has managed the hedge fund AAM Absolute Return Fund since December 2005. The fund’s total yield, since start-up in 2005 through year-end 2009 was 69,5 percent.

The fund achieved a yield of 7.4 percent in 2009, compared with 15 percent in 2008. The fund currently manages some USD 385 million following significant new fund subscriptions.

Converto Capital Management 
Converto Capital Management, which was established 1 July 2009, acts as investment advisors to Converto Capital Fund. Converto Capital Fund is the leading shareholder in the listed companies Aker Seafoods (65.9 percent), Aker Floating Production (72.3 percent), Aker Philadelphia Shipyard (50.3 percent), Bjørge (indirect 39.9 percent), and American Shipping Company (19.9 percent).

Converto Capital Fund also controls 100 percent of Ocean Harvest and is the largest American Shipping Company bondholder. In addition, the fund is a financial investor in some smaller-sized companies.

Converto Capital Management has great freedom of action, backed by wide ranging authorizations, regarding its mandate to create value for Converto Capital Fund. Accordingly, the management company can act opportunistically in its efforts to develop the companies in its portfolio.

Each fund investment is monitored directly by a Converto Capital Management investment manager. Generally, at least one Converto representative is a member of the board of directors of each portfolio company. Active ownership is exercised in the boardroom and through follow-up of day-to-day management and improvement processes.

Characteristics are proximity to investments, familiarity with portfolio companies, and rapid decision-making. Converto Capital Management can draw on resources from Aker in areas that include financing, acquisitions, mergers, and industrial expertise.


Financial strategy 
Converto Capital Management drives and develops Converto Capital Fund investments. Asset value is built by improving operating efficiency and financing. Implementing structural measures and making strategic acquisitions and disposals strengthen portfolio companies.

The fund has a planned lifetime of seven years, and the goal is to maximize returns to owners. Asset values are visualized through share sales to industrial or financial owners. Alternatively, a fund company could be developed into an Aker industrial investment.

Converto Capital Management is run by a dedicated team. Asset development takes place at arm’s length from Aker ASA. The long-term ambition for an upcoming investment fund is to attract capital from external investors.

Converto Capital Management’s further development is supported by Aker resources.