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Alas, no. These factors certainly moved financial markets in February. We're happy to report that all our mandates increased in value this month and, yes, upbeat financial news certainly made things easier. We just don't think this is how we create value for our clients. You didn't really entrust us with your funds in order that we should navigate the incessant flow of financial news, did you?

Four months ago, I quoted the late Paul Samuelson as saying that the stock market has forecast nine of the last five recessions. If you look at stock price movements from day to day, the real figure is probably a lot higher. With every dire report of deteriorating trade relations or incomprehensible tweets, there is always the possibility that extrapolating provides the best guess. And if things really go wrong ...

We’re happy to report that all our mandates increased in value this month.

Every so often, it is evident that markets are gripped by fear. Here's a bit of statistical fun derived from the Norwegian benchmark index OSEBX: If, somehow, you lined up all the worst index days in a row, you would have lost 75 per cent of your investment in just two weeks. Quite a few predictions of a recession just there.

On the other hand, or rather at the other end of the scale, you would have tripled your money in a mere 12 days of statistical euphoria.

Extremely unlikely? Of course. That's just the point: Market movements often reveal expectations of an extremely unlikely turn of events. There's a hint of extrapolation in quite a few days of trading.

So, no, we don't think this month, enjoyable as it may have been, is a good cause for celebration. Then again, we are likely to tell you that the next month of heavy losses is no reason for mourning.

It's all part of the game.

Fund updates for February 2019

Pareto Investment Fund
In February, the fund continued its positive start to the year. Market sentiment has gradually eased, with receding concerns about an all-out trade war and weakened demand, especially from China.

 

Pareto Aksje Norge
The positive start to the year continued into February. Most of the decline we saw during the autumn has been reversed, but there is still some ten per cent up to the peak in October.

 

Pareto Nordic Equity
For Nordic equities, February proved to be another good month – both the fund and the market gained 4% in value.

 

Pareto Global 
February was another very positive month for Pareto Global. The fund ended up more than five per cent.

 

Pareto Nordic Return 
For Nordic equities, February proved to be another good month. The fund gained almost 4% in value.

 

Pareto Nordic Alpha
The fund had a very positive month. All our ownership positions, with one exception, delivered a positive return.

 

Pareto Nordic Omega
The fund had a very positive month. All our ownership positions, with one exception, delivered a positive return.

 

Pareto Nordic Corporate Bond
The Nordic high-yield market continued its strong development from January. Activity in the secondary market was good and credit margins continued to decline.

 

Pareto Global Corporate Bond
The year has really begun well for asset classes with risk, credits included. Market liquidity is considerably better than at the end of 2018. New issues that have come out this year have traded strongly afterwards.

 

Pareto Høyrente
Pareto Høyrente had a strong month in February. Thus, the fund has started the year very well and made up for the somewhat weaker development towards the end of 2018.

 

 

Historical returns are no guarantee for future returns. Future returns will depend, inter alia, on, market developments, the portfolio manager's skill, the fund's risk profile, as well as fees for subscription, management and redemption. Returns may become negative as a result of negative price developments.

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