Top rated manager handed short-dated corporate bond fund
Newly-launched fixed maturity strategy intended to cut interest rate risk and tap strengths of Euro Stars AA-rated manager.
Markets
by Chris Sloley on Nov 29, 2012 at 15:51
Danish investment firm Sparinvest has launched a short-dated corporate bond fund for Euro Stars AA-rated manager Klaus Blaabjerg.
The Sparinvest Value Bonds 2016 fund will be co-managed by Blaabjerg, who runs four funds for the firm, as well as fellow fixed income specialist Sune Højholt Jensen.
One of the main aims of the fund will be to adapt the underlying corporate bonds to match the fund’s intended lifespan – which is to December 2016. In prioritising this, it hopes to reduce interest rate risk.
Sparinvest, which recently relocated its headquartered to Luxembourg, said the fund will act as an alternative to existing Danish bond portfolios but it did state there is a higher credit risk.
If the companies pay as expected, investors in the new fund will receive an annual interest payment, which will be 3.5 to 4.0%-points higher than Danish government bonds, with the same maturity.
At present the fund is only registered for sale in Denmark, however, a spokesperson told Citywire Global the company is ‘testing the waters' with regards to other markets.
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