2021 has been characterised by a favourable macro tailwind for Nordic high yield bonds with relatively low interest rates and credit risk duration.
We continue to be optimistic with respect to the outlook for the Nordic markets in the second half of 2021. However, we acknowledge that with high valuations comes increased risk and less potential for further capital appreciation on top of underlying carry.
This year the EU Sustainable Finance Disclosure Regulation (SFDR) came into force. This regulation concerns the disclosure of information on sustainability in financial products. The goal is to direct capital flows towards more sustainable investments with lower climate emissions.
Read more about this, about active ownership, our company assessments and much more, in our latest report on responsible investments.
Going into 2020, financial markets were characterised by restrained optimism, as rate cuts in the preceding year had triggered a bull market in stocks and tightening credit spreads. Then came WHO and declared a global health crisis.
A year of unprecedented declines and record rises provided some very useful lessons in investing. Read Finn Øystein Bergh's annual review.
Pareto Asset Management is an independent fund manager, with operations dating back to 1995. The company is part of the Pareto group, headquartered in Oslo, with branches in Stockholm and Frankfurt.
We believe that responsible investments are important for achieving the best possible risk-adjusted return for our unitholders and clients, and shall exercise active ownership in the portfolio companies in order to promote responsible business operations.