Strand Corporate Bond Fund will hold an "underweight” position on Sweden’s real-estate industry, according to its co-managers Mari Fors Rhenman and Carl Johan Lagercrantz of Strand Kapitalforvaltning AB.

Issuance in Sweden’s corporate bond market has been increasingly dominated by real estate firms, which have used the debt to pay for their rapid growth. At the same time, the secondary market for trading bonds has been widely criticized for its lack of liquidity and price transparency. Earlier this year, 35 Swedish bond funds slammed shut amid an investor panic triggered by the pandemic.