EUROPE - Swisscanto has launched its (LU) SICAV 2 Bond Absolute Return (CHF and €) bond funds, which aim to achieve positive yields of 1.5% (CHF) and 2% (EUR) above their respective money market yields over a rolling time horizon of three years.
The SICAV 2 bond is targeted at clients in search of a security-orientated investment that will provide a regular income, and will be available to clients from the beginning of November.
Swisscanto said the fund would try keep risks at a minimum with a wide diversification of investments rather than concentrating on a single investment. "Bond investments with differing risk properties will offset the risks contained in each investment so that they complement one another."
The bond will aim to provide an interest return above that from the money market with a system of active management.
"Choosing the right time and terms for investments and calculating the durations of investments with derivative instruments will reduce the risks from changing interest rates," Swisscanto said in a release.
Currency risks are hedged for the most part against the respective fund's currency (CHF or €).
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