Simplicity’s corporate bond fund on track to deliver target
Simplicity’s corporate bond fund is on track to deliver against its return objectives, the Swedish manager said, after publishing returns for the first six months since launch.
The fund has returned 3% in local currency terms, and is projected to offer a return over its first year of 6.1% from investing in a portfolio of 30-50 corporate bonds with a spread of credit ratings.
The fund has outperformed its benchmark OMRX T-Bill index over the period, although particularly over the past three months. It launched with a target of providing a 5% annual return at prevailing interest rates.
The focus is on higher rated debt from well known Nordic corporations, as the manager is targeting an absolute return at a reasonable level of risk over both the short and long term. The fund can be traded daily.
According to latest figures, the fund’s geographic exposure is Sweden 65.2%, Norway 25.7%, Denmark 5.6% and Finland 3.5%.
The top ten holdings are:
|FORTUM 170314 (SE)|
|TELIA 160720 (SE)|
|VOLVO FINANS 160509 (SE)|
|VOLVO TREASUR 161208 (SE)|
|DNB PERP 170329 (NO)|
|SBAB 170201 (SE)|
|AKELIUS 150625 (SE)|
|STOLT NIELSEN 180319 (NO)|
|AKSO 170606 (NO)|
|LÄNSFÖRS FRN 160808 (SE)|