The approach provides a Nordic/Global corporate credit exposure with low geopolitical risk and a sound ESG profile.
March 2024
In March, and generally since the beginning of this year, our Nordic Bond funds have shown a remarkable level of resilience and strength. While the predominant theme among bond investors in developed markets has been the question of just by how much central banks would be cutting rates this year, many markets did not reflect that. The Bloomberg Global Aggregate Index, as a proxy investment grade markets, is down by 2.1% year-to-date.
By contrast, Nordic Bonds have been on a steady path of positive returns – that is, as long as investors were able to avoid the pitfalls of rising default rates. Such has been the case with the Pareto bond funds, where the default rates are hovering at or near their historical lows. Pareto’s fundamental, bottom-up management style is paying off.
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