30 June

Simplicity High Yield – New fund launching on August 14th

On August 14th, 2020 we launch our next fixed income fund – Simplicity High Yield. The fund will primarily focus on investments in bonds issued by companies from the Nordic region. The companies in which the fund invests will 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 will be managed by our ordinary fixed income management team consisting of Henrik Tingstorp, Fabian Dahl and Magnus Thyni. The management team will also be supported by our in-house analyst Johanna Ingemarson.

The fund will exclude 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 will be 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.

Below is the management teams comments on why they choose to launch the fund now:

“Many of our clients and advisors have asked us if we would be willing to launch a pure high yield fund, so the idea of such a fund has been there for quite some time. The turbulence in the financial markets during the spring has also contributed to high credit spreads, which means that there is additional returns for investors willing to lend to companies right now. These factors combined make us believe that the time for launch is just right”.

To read more about Simplicity High Yield, please click here

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Monthly report July 2023

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