Lannebo Corporate Bond - Corporate bond fund
Companies seeking financing have traditionally have looked to conventional bank loans. Now many companies turn to the capital markets to fund their business, which has increased the potential to invest in corporate bonds. A corporate bond fund is an alternative to savings in a traditional fixed income fund. The fund is suited for those who are willing to take a little more risk than that of a traditional interest bearing savings but that do not want to invest in the equity market.
Lannebo Corporate Bond fund is an actively managed fixed income fund that primarily invests in corporate bonds from issuers in the Nordic region, with an emphasis on Sweden. More than 35 per cent of the fund’s assets can be invested in fixed income securities and other debt instruments issued or guaranteed by a state or local government in the Nordic countries. The average maturity of the fund’s holdings is normally 3-5 years, but may at times deviate from this range. The lowest average credit quality of the holdings is investment grade. Investments in foreign currencies are always hedged.
The fund is suitable for those who
- want a higher return than traditional fixed income funds but at a lower risk than equity funds
- want exposure to corporate bonds with low to medium risk
- want an actively managed fund where a thorough company analysis creates long-term returns
Subscriptions of SEK C, unit classes are available through a distributor, who has entered into an agreement with the fund company, providing investment advice on an independent basis or portfolio management to a customer and, consequently, may not receive and retain compensation from the fund company but is paid directly by the customer.
Each investment is evaluated individually and we invest only in bonds issued by companies we are familiar with. We build a balanced fund of corporate bonds from various industries, geographic regions and varying risk profiles. Investments are made in corporate bonds issued by stable companies with strong balance sheets. The aim of the fund is to generate stable returns over time.
Lannebo Corporate Bond conducts genuine active management with focus on long-term, profitability and sustainability. The funds managers choose holdings on the basis of a thorough company analysis. The managers assess factors such as the company’s business model, market position, growth opportunities and risks. How a company takes responsibility towards people, environment and society also affect its future growth. Therefore, before making an investment the portfolio managers complete an internal company sustainability analysis. The managers analyse and assess various areas of sustainability and review whether there have been previous sustainability incidents. The managers then rate the company based on the results of the analysis. The internal analysis also includes a rating from an external sustainability service provider. Lannebo’s active management means that our managers develop a deep knowledge of each holding, which we believe is a prerequisite for being able to integrate sustainability into the investment process. We are long-term investors and our task is to invest in companies that will be profitable and deliver to our fund investors a good return over time at a reasonable risk. The managers also meet with company managements regularly to monitor developments and discuss sustainability.
Lannebo Corporate Bond does not invest in companies that violate international conventions or in companies that produce and/or distribute controversial weapons. The fund also refrains from investing in companies in which more than 5 per cent of the company’s turnover comes from the production and/or distribution of tobacco, cannabis, alcohol, weapons, gambling or pornography. The fund also refrains from investing in companies in which more than 5 per cent of the company’s turnover comes from extracting of fossil fuels (coal, oil and gas).
Risk Indicator (SRRI)
Basic fund facts
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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.