Espiria Nordic Corporate Bond

A fixed-income fund that gives investors unique access to the Nordic corporate bond market. Espiria Nordic Corporate Bond focuses on sustainability and quality to generate an attractive risk-adjusted return. The recommended invest horizon is +2 years.

The Nordic region offers a stable macroeconomic environment, characterised by AAA-rated economies and a strong AA-rated banking system. This means that Nordic covered bonds offer investors a level of security that is difficult to find in other markets. In addition, a large proportion of interest rates are floating, which means there is less volatility in the market. This, combined with higher spreads compared to credits in Europe and the US, makes Nordic bonds an interesting investment opportunity for those seeking low-to-medium-risk investments with attractive return potential.

The fund’s investment mandate includes higher-yielding bonds with lower liquidity and limited interest rate risk. The second component comprises more liquid investment grade bonds with low interest rate risk and a more moderate value creation. Approximately 5-15 percent of the fund is allocated to covered bonds.

Over time, the portfolio is expected to comprise:

• More than 100 individual issuers
• Predominantly Swedish exposure
• Broad sector diversification
• Limited exposure to sectors that are affected by the same external factors
• Exposure to large Nordic full-service banks

• Invests in Nordic bonds, where spreads and return potential have historically been favourable relative to broader Europe.
• The Nordics offer a stable macro environment (AAA-rated national economies)
• Investments based on robust internal credit assessment for non-rated bonds