Maria Andersson and Niklas Edman are the two managers heading up the newly-launched fund from Carnegie – the High Yield Select Fund. According to an interview on Swedish business news site Realtid, the two envision a return of around five percent.
"I understand that people can be sceptical with the current sentiment in the market, however we are convinced that we can create an attractive portfolio with Nordic content," Niklas Edman told Realtid.
The fund was launched on Nov. 2, and by Nov. 22, it was already seeing an inflow of round SEK 100 million (EUR 10,1 million). Once the fund reaches SEK 2 billion, it will close.
Andersson and Edman are aiming to have bonds issued by 40 to 60 companies in High Yield Select's portfolio, and the fund is targeting a fairly wide spread of countries and sectors in the Nordic region.
"We have high-yield bonds in both the Carnegie Strategy Fund and the Carnegie Corporate Bond fund, so this is nothing new. We have a total of 12 billion high yields. Prior to launching this new fund, we have worked a lot with packaging and structure to create a pure high-yield fund. We have worked on it for three years in total. We have been thinking about how it can work in the long run and how to adapt it to what the world looks like in 2017," Edman said.
The idea is that it should be a niche product that is difficult to replicate, Realtid reported.