Avanza is broadening its fund offering with Avanza Ränta Global, a fixed income fund with exposure to global corporate bonds, which gives customers an opportunity to benefit from today's high interest rate environment. The fund is managed by Captor Fund Management AB, whose investment strategy previously has been used primarily by large institutional clients. The policy rate is the higher in over 15 years, which has taken a heavy toll on both the stock market and the finances of individual investors. To enable more customers to take advantage of the high interest rate environment, Avanza is therefore launching Avanza Ränta Global, a fixed income fund with exposure to global corporate bonds. Avanza Ränta Global offers exposure to global corporate bonds in two different credit segments. Investment Grade (70%) is composed of 250 global companies, evenly distributed across North America and Europe, with high credit ratings. High Yield (30%) is composed of 100 North American and 75 European companies with lower credit ratings, which means that their bonds offer the possibility of a higher return at a higher risk. All companies in both credit segments are equally weighted, so they represent an equal share of the fund. Captor's investment strategy is to provide exposure to corporate bonds through derivatives. This means that the fund takes Swedish rather than international interest rate risk, while the exposure to companies is global. This provides better diversification, higher liquidity and minimal currency exposure. Avanza Ränta Global is a feeder fund, which means that it must invest at least 85% of
assets under management in its master fund. In practice it is 100%, however. The fund's interest rate duration is expected over time to be 4 years and the total fee is 0.58%. The recommended investment horizon is at least 3 years.