Storebrand Obligasjon+: Suitability

The Storebrand Obligasjon+ Fund would be suitable for those with a medium-term investment horizon or where a decision has been made to avoid or limit investment in the stock market. Historically bonds have outperformed cash, but are a more volatile asset class. The Fund may trade in fixed income securities with duration between 0 and 10 years and may also invest in the credit markets.

The Fund would be appropriate as part of a cautious strategy or as part of a balanced strategy where investment is allocated into a mixture of equities and cash/bonds. The Fund would also be appropriate to someone close to retirement.

Investing for retirement, as with all investment opportunities, is about balancing performance against risk. The tolerance to risk will depend on a whole range of factors; for example, whether or not other savings exist to fall back on. However, the most important consideration is likely to be age and time remaining until retirement. A younger investor may typically be more likely to invest in equities. As the time to retirement approaches, the investor may look to consolidate gains by switching equities into less volatile investments such as bond and cash funds.

Investors should note that, due to the plan's benefits being provided in Norwegian Krone but funds being invested in foreign markets, an exchange rate risk is involved.