SPP issues corporate bond fund
SPP, Norwegian insurer Storebrand’s Swedish asset management business, has launched a corporate bond fund that will invest only in companies with high credit ratings and that are based in the Nordic region.
The fund is intended to act as a complement to other types of Nordic investments, and will replicate a strategy already used for managing other portfolios, including within SPP Liv, the life insurance business of SPP, to achieve return with low risk.
The SPP Företagsobligationsfond will offer lower risk than other corporate bond funds, the manager said, and will seek to remove interest rate and currency risk to achieve a smoother return.
SPP said that it is confident that the new fund will appeal to both institutional and retail investors. All fixed income securities in the portfolio will have a rating from a rating agency such as Moody’s or Standard & Poor’s.