Due to the continuing low interest rate environment, fixed maturity funds are enjoying increasing popularity. The Raiffeisen-Mehrwert 2024, the new fixed maturity fund from Raiffeisen Capital Management, will be launched early July. The fund seeks to allocate 70% in investment grade and 30% in high yield corporate bonds until its maturity on April 26, 2024. An average rating of BBB is expected across 170 issuers. Raiffeisen Capital Management expects the fund to have a yield to maturity of around 1.83% - with an anticipated yield to worst of around 1.77%.
Due to the fixed maturity, the fund has a manageable investment horizon. During the term, the bonds will be chosen to reach maturity at the end of the fund’s life. From six months before the end of the fund, investments can be made predominantly in cash deposits.
The subscription period for the Raiffeisen-Mehrwert 2024 ends on June 29, 2018. First details on the new fund can be found in the OnePager (German language).
Fixed maturity funds previously launched by Raiffeisen Capital Management are the Raiffeisen-Laufzeitenfonds-Anleihen 2019, as well as the Raiffeisen-Mehrwert 2020, Raiffeisen-Mehrwert 2021 and the Raiffeisen-Mehrwert 2023.