Simplicity launches Global Corporate Bond fund for Swedish market
Swedish manager Simplicity has launched a Global Corporate Bond fund one year after launching its Nordic corporate bond focused fund called Simplicity Företagsobligationer.
The earlier Nordic fund has attracted some SEK800m (€96m) in its first year, and provided a return of close to 8%, which is higher than the targeted 5% return – and with lower volatility than initially predicted too.
Simplicity said that the new Global Corporate Bond fund would use the same strategy as the Nordic corporate bond fund, although its slightly higher expected return of about 6% annually will also come with slightly higher risk.
The new fund will consist of a portfolio of between 30-60 corporate bonds, with exposure to the Nordic markets, Central Europe, the US and emerging markets. It will invest in bonds with different credit ratings, but will be focused on those with higher ratings.
The portfolio has been active since December 2012, and gained 1.83% from the start of the year to 31 March, Simplicity said.