High Yield
Our latest fixed income offering which invests in Nordic bonds with slightly lower credit ratings, but higher possible returns.
- Fixed Income
- 2020.08.14
- 0,90%
- Yes
- Article 8
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.
Fund facts
- 2020.08.14
- 0,90%
- 0,96%
- 100 SEK
- 5518-0921
Risk information
-
01234567
- Low (2)
- 2,25%
- 2,49
Performance of the fund
Return
- 0.07%
- 1.50%
- 6.99 %
- 27.90 %
- 35.57%
- 0.38%
Risk information
Past performance is no guarantee for future performance. Fund units may go up or down in value and investors may not get back the amount invested. The fund's result (return) is calculated after deduction of annual fees, in Swedish kronor and with dividends reinvested in the fund. No consideration has been given to inflation.
Holdings and distribution
Industry distribution
- 63.9%
- 28.1%
10 largest holdings
- 1.5%
- 1.4%
- 1.3%
- 1.3%
- 1.3%
- 1.1%
- 1.1%
- 1.1%
- 1.0%
- 1.0%
Geographical distribution
- 55.0%
- 10.7%
- 6.2%
- 3.2%
- 2.7%
- 2.7%
- 2.2%
- 2.1%
Sustainability-related information
To manage sustainability risks, it is crucial that the companies in which Simplicity invests through its funds conduct their operations in a responsible manner. The company employs norm-based screening to ensure compliance with good governance practices. At a minimum, Simplicity expects these companies to adhere to laws and international norms and conventions, such as the ILO conventions, UN Global Compact, the UN Guiding Principles on Business and Human Rights, and the OECD guidelines for multinational enterprises. Simplicity also expects a certain level of compliance regarding other types of environmental, social, and governance-related incidents. All holdings in Simplicity’s funds undergo regular screening to verify that no violations have occurred. The norm-based screening is conducted by a third party.
If a company held in one of Simplicity’s funds is found to have been involved in an incident or violation, the fund company will take action. These actions may include initiating an engagement dialogue to understand the company’s view of what happened, what measures have been taken, and what measures will be taken to address the issue. The dialogue, together with other information collected by Simplicity, forms the basis for deciding whether the company remains investable or whether the holding should be sold. Simplicity’s funds will not invest in companies that systematically violate international norms and conventions without showing a willingness to change and/or have not compensated third parties who have suffered verified serious harm as a result of the violation.
Quantitative and qualitative analysis, together with screening, are used to achieve the environmental or social characteristics promoted by the fund. The fund managers regularly review sustainability data providers to ensure data quality. The data used is based on both reported and estimated information. The fund company has concluded that any potential limitations in data or methodology do not impact the fund’s ability to meet its environmental or social characteristics.
The binding elements of the fund are to 1) make at least 20 % sustainable investments and to promote environmental or social characteristics, with the remaining portion promoting environmental and social characteristics, 2) the share green, social, sustainable and sustainability linked bonds should be at least 5 % of the fund, 3) adhere to Simplicity’s responsible investment policy, including the exclusion criteria as well as the inclusion, norm-based screening, and engagement strategies. Due diligences are carried out regularly by internal controls.
Statement on principal adverse impacts of investment decisions on sustainability factors (PAI) – Simplicity AB.
Updated: 2025-12-05
This text contains sustainability-related information for Simplicity High Yield, a light green fund according to EU Sustainable Finance Disclosure Regulation (SFDR Article 8). This means that the fund promotes environmental or social characteristics but has no sustainable investment objective.
The fund promotes environmental and social characteristics through exclusion, inclusion, norm-based screening, and engagement. Additionally, the fund makes investments with a sustainable objective. Several sustainability indicators are used to measure the attainment of the environmental or social characteristics promoted by the fund as well as the fund’s sustainability objectives. These indicators are considered in investment decisions and are regularly monitored.
At least 20% of the fund will be invested in sustainable investments. The fund’s sustainable investments are linked to an environmental or a social goal. The goals of the fund’s sustainable investments include the UN Sustainable Development Goals, the objectives of the Paris Agreement, and the environmental objectives of the EU Taxonomy. A sustainable investment must contribute to at least one of these sustainability goals.
The fund considers principal adverse impacts on sustainability factors to ensure that the sustainable investments do not cause significant harm to any other environmental or social investment objectives through two main methods: exclusion and norm-based screening. Norm-based screening and exclusion are carried out in accordance with Simplicity’s responsible investment policy.
According to the fund terms, the fund can have a maximum of 10 % in cash held as liquidity. The fund may also use derivatives. The remaining portion of the fund is invested in assets that promote environmental or social characteristics.
The fund excludes investments in the following sectors: tobacco, cannabis, alcohol, pornography, gambling, weapons, fossil fuels, and GICS sector 10. Additionally, there are specific requirements for energy production based on fossil fuels and nuclear power. Norm-based exclusions are also applied to companies subject to applicable EU or UN sanctions. Thresholds are used to determine whether a company is related to any of the mentioned sectors or activities.