Lazard Asset Management has launched a fixed income vehicle investing in the higher end of the Scandinavian bond market, noting the stable fundamentals in the region.
Believing the Lazard Scandinavian High Quality Bond fund to have no directly comparable peers, managers Michael Weidner and Daniel Herdt will invest with a medium to long-term horizon, focusing on issues with high credit rating and liquidity profiles.
The pair sit in Lazard's European fixed income team.
The fund will hold Scandinavian bonds and global bonds denominated in Scandinavian currencies.
Weidner and Herdt will use a blend of bottom-up fundamental analysis and security selection with a top-down asset allocation.
Weidner said: "The fundamentals of the Scandinavian economies of Norway, Sweden, Finland and Denmark are exceptional, and the bonds have been providing stable performance for many years."
He expects that the combination of attractive returns with high levels of credit rating, liquidity and diversification will appeal to investors.
The manager added this was particularly true "in times of geopolitical risk and historically low or negative interest rates".
He said: "In our opinion, there is no comparable product currently available in the market."
The fund will carry charges of 3% initial and 0.4% annual management charge (AMC) on its primary share class, which stipulates a minimum investment of €250,000.
Lazard will also offer a more retail-focused share class, with a 3% initial and 0.25% AMC, with a minimum investment of €500.