At Simplicity we offer domestic and foreign investors attractive and sustainable investment possibilities opportunities in equity and fixed income funds, with varying levels of risk and strong emphasis on risk adjusted returns.

The goal of our investment management is to generate long-term, stable and risk adjusted returns at a lower risk. We achieve this with our active, structured, and disciplined investment process where our focus is investments in well-managed quality companies.

These companies base their operations on strong historical results and sound balance sheets with operations that meet our requirements regarding responsible and sustainable investments.

High on the agenda is our risk assessment, which runs through each individual investment. This in combination with well-diversified fund portfolios, with holdings in many companies from different industries enables us to create good risk adjusted returns.

Our equity and fixed income managers have proven track records and experience to generate good risk adjusted returns during different market climates.

Our equity management

Simplicity Norden – Nordic equity
Simplicity Sverige – Swedish equity
Simplicity Småbolag Sverige – Swedish small cap equity
Simplicity Småbolag Global – Global small cap equity

 

We invest in companies that according to our assessment are expected to deliver good risk adjusted returns. The goal of delivering good risk adjusted returns is essential to us, and according to our philosophy we cannot say that we have outperformed the market simply by taking on more risk in our portfolios.

Our goal is to deliver good returns at a lower risk.

To achieve this goal, we see a high degree of active portfolio management as a necessity. As a result, our portfolios diverge considerably from indexes regarding countries, industries, and individual stocks.

All companies are assessed using the same structured and disciplined processes and no companies are favoured. Companies which benefit from current market conditions are prioritized since performance is one of four focal points of the analysis, whilst companies that struggle are avoided.

Fundamental to our investment philosophy is to invest in well-managed companies. That the companies we choose to invest in operate their business in a responsible and sustainable way is an important part of our philosophy. Please read more about our work as responsible investors. Just like our analysis regarding quality, value, risk, and performance our stance on responsible investments goes hand in hand with our risk awareness and goal of delivering good risk adjusted returns.

Our analysis has four focal points

  • Quality
  • Value
  • Risk
  • Performance

The analysis is an overall evaluation, which translates into investments in companies that generally receive good or satisfactory scores on all four areas rather than a top score in one area but low ranks on others. Feelings and subjective assessments are put aside in the decisions leading up to an investment since our analysis only focuses on measurable parameters and facts.

Our equity management is characterized by

  • Risk awareness
  • Long-term risk adjusted returns
  • A high degree of active portfolio management
  • Quality companies in a positive trend
  • Objective assessments
  • Structured and disciplined investment processes
  • Current market trends
  • Responsible and sustainable investments

Our fixed income management

Simplicity Likviditet – Short-term interest-bearing instruments
Simplicity Företagsobligationer – Nordic corporate bonds
Simplicity Global Corporate Bond – Global corporate bonds
Simplicity High Yield – High yield bonds 

Our investment processes

We have a fundamental investment process in which we assess many factors. Our starting point in each new investment is to get a picture of the company´s operations and business model, find the company´s weaknesses and strengths as well as the associated opportunities and risks. In this part of the analysis different sustainability aspects are monitored and evaluated. The company´s financial history, current position and projected development and valuation are also assessed for each individual bond.

These factors are evaluated for each company and compared to similar companies and investments. The key insight we always strive to map out are the risks associated with each investment, and how a new investment affects the overall portfolio composition.

We always emphasize a sound risk management approach by spreading the risks between many companies and bonds within different industries and prefer lower overall risk rather than chasing the last possible basis point return.

Our fixed income management is characterized by

  • Active portfolio management
  • Long-term
  • Fundamental investment process
  • Investments in quality companies
  • Spreading the risks and sound risk control
  • Responsible and sustainable investments
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