Stockholm (HedgeNordic) – Swedish fund company AIFM Group has launched an AIF-regulated fund called Räntespar i Sverige, aiming to serve as an alternative to traditional fixed-income funds. Räntespar i Sverige was set up as an alternative investment fund that issues participating loans to investors, who, in turn, receive exposure to a pool of predominantly investment-grade corporate bonds.
With the participating loans listed on the Nordic Growth Market, investors can sell their investments without Räntespar i Sverige having to liquidate existing positions. The fund is not affected by inflows and outflows, which ensures a long-term horizon that protects against short-term movements in the market. The vehicle offers an annual interest rate of at least 2.5 percent above the three-month STIBOR (Stockholm Interbank Offered Rate), with quarterly interest payments and a possible annual payment on excess profit. Investors receive 80 percent of the excess profit over the target of 2.5 percent plus three-month STIBOR.
The launch of Räntespar i Sverige marks the first collaboration between AIFM, a Swedish fund company offering a comprehensive infrastructure for setting up Swedish domiciled funds, and Räntespar. “Our mission is to offer a better alternative to a traditional savings account, simply put, how saving is supposed to be,” CEO Per Thornadsson comments on the launch.
Räntespar i Sverige will maintain exposure of at least 70 percent to investment-grade corporate bonds across North America, Europe and the Nordic region. “Räntespar is an exciting product that has a slightly different approach compared to a traditional fixed-income fund,” says Johan Björkholm, Deputy CEO at AIFM Group. “We see a great demand for these types of funds, and that demand has not directly decreased lately.”