On August 14th, 2020 we launched our latest fixed income fund – Simplicity High Yield. The fund primarily focuses on investments in bonds issued by companies from the Nordic region. The companies in which the fund invests have slightly lower credit ratings compared to the majority of companies in which our current fixed income funds invests in. This translates into higher risk, but also higher possible returns over the long term.
The fund excludes non-renewable companies within the energy sector, such as oil, coal, and gas, just as we do in the rest of our funds. This decision is based on our belief that such companies will face challenges in the current transition towards a sustainable society. As we exclude certain industries as we deem un-fit, we will also seek to invest in companies which through their operations contribute towards this sustainable transition. We intend to invest a certain part of the funds capital in so called green and social bonds.
Simplicity High Yield is our fixed income fund associated with the highest risk. Investors should therefore have an investment horizon of at least three years. Our aim is that Simplicity High Yield will be the fund that generates the highest returns amongst our fixed income funds, with a yield of 5-6% given the current market environment.
Risk management is a central part of Simplicity’s management process and it is therefore important that sustainability risks are considered and monitored just like other types of risks. Simplicity High Yield is a fund that promotes environmental and social characteristics. The fund does not invest in companies that produce or distribute weapons, alcohol, tobacco, gambling, pornography, and fossil fuels. The fund also does not invest in companies that systematically violate international standards.
To measure and monitor the environmental and social impact, Simplicity has access to several different methods, services, and data sources. The fund has documented investment and sustainability processes that the managers follow. The managers have access to several different data sources, including Bloomberg, MSCI, Capital IQ and analysis from several analyst firms and banks. The fund’s holdings are regularly screened with the help of MSCI. The person responsible for Simplicity’s risk function audits, independently of the managers, that the fund complies with established criteria.
Read more about the fund’s sustainable investments in the fund’s prospectus and on our page for responsible investments.
- 100 SEK
- Medium (4)
Past performance is no guarantee of future returns. The money you invest in a fund can both increase and decrease in value and it is not certain that you will get back the full amount invested. The fund's value can fluctuate significantly due to its composition and fund management methods used by the Fund Management Company.