Historical performance is no guarantee of future returns, and fund shares can both increase and decrease in value. There is no certainty that you will get back the full amount invested. When markets are volatile, many investors turn to bond funds. This is a type of fund that is particularly good to invest in right now because high interest rates are still holding strong. This means that funds investing in bonds have higher expected returns than they have had in a long time.
“It is wise to spread your risk between stocks and bonds. Due to the recent economic turbulence, bond funds have become popular – and rightfully so. What one should remember is to choose a bond fund with low fees,” says Johan Moeschlin, the manager of the award-winning AMF Bond Fund Long, with a fee of only 0.10 percent.
How is the fund structured?
“AMF Bond Fund Long holds only bonds issued in Swedish kronor, but with longer maturities, averaging close to four years. The fund also contains a significant portion of corporate bonds. Therefore, the fund has higher expected returns than AMF Bond Fund Short, but it can also vary more in value as it follows the fluctuations in long-term interest rates and credit spreads. Due to the higher risk, one should have an investment horizon of 2 to 3 years to invest in this fund.”
Over the past 10 years, the fund has averaged a return of 1.22 percent per year, which is the best in its category.
High returns thanks to active decisions
Like all AMF funds, AMF Bond Fund Long is actively managed. This means that it is managed by a team that makes its own assessments and decisions based on analysis, data, and monitoring of the environment and market conditions.
“All members of the team are specialists, and we complement each other. Our broad expertise and close collaboration are strengths in our management,” says Johan Moeschlin. “As a bond manager, I have two main levers to adjust the portfolio: allocation between different types of bonds and adjusting the duration or average maturity.”
The approach of active management truly pays off.
“It is essential to constantly keep an ear to the ground. Together, we pieced together how the market was about to change and adjusted the fund accordingly. Collaboration is crucial for the result,” says Johan Moeschlin.
AMF Bond Fund Long has five stars from Morningstar. Morningstar has also named the fund the best bond fund in 2024.
Funds for everyone
AMF offers a dozen funds for individual fund savings, occupational pensions, and premium pensions. The funds are actively managed, tailored for long-term savings, and have low fees. All funds are managed by AMF Fonder AB.
Morningstar Awards for Investing Excellence 2024, Best SEK Bond Fund
Morningstar, category Bonds – SEK bonds, mix, 20141025-20241025. Inflation has not been taken into account.
As of 20241025