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What I do know, is that a lot of our clients are asking themselves – or us – what the outcome of the election means for the financial markets.

Is volatility going to increase? Would economic growth be impaired? What about the dollar and interest rates?

No, I won't go into financial detail. Instead, here's a bit of British political history. The late Margaret Thatcher, prime minister from 1979 to 1990, famously said that "there's no such thing as society. There are individual men and women and there are families."

Her words have an interesting pertinence to our present outlook. Of course, there is indeed such a thing as a market. You can actually buy the market, if that's what you want to do.

We don't do that. We buy individual securities. Bonds issued by presumably strong corporations and banks, or stocks in profitable, healthy companies. Of course, these may be affected as well – we just have to find out how.

So ... here goes:

Will the Swedish real estate company M2 Asset Management default on their bonds, with a loan to value of some 30%? Is the election going to make Norwegian network operator Ice Group default on their bonds? What about the bonds in Finnish forest industry company UPM-Kymmene?

As for stocks, will Lerøy Seafood Group make less money selling fish? Will fertiliser giant Yara see falling free cash flow as a result of the election? And would it erode profits at Microsoft or Swiss health care company Roche, or perhaps the Norwegian energy company Scatec Solar?

Well, that may certainly be the case, but it's hard to see why these companies should be materially afflicted.

That's not to say that no companies in any market would feel the impact of the political uncertainty or the political choices of the US president for the next four years. These companies, however, are selected precisely because we believe they can withstand such turbulence and continue to prosper and grow.

We may be wrong, and we'll most certainly appear to be wrong many times in the future, but we believe strongly in our philosophy. This company is not for turning.

Fund updates for October 2020

Pareto Investment Fund
October was a weak month in the stock market. The price increase we saw earlier this autumn disappeared, and the market is back at the level we saw in July.


Pareto Aksje Norge
October was a weak month in the stock market. The optimism arising from the positive third quarter results was replaced by corona fear and the ensuing uncertainty about the recovery of the global economy.


Pareto Nordic Equity
After six consecutive months of appreciation, Nordic equities fell through in October after a half-run, ending with a negative sign.


Pareto Global 
A common denominator for many of our companies now is the challenges related to the pandemic, and in the short term, stock prices largely reflect the new resurgence of the virus.


Pareto Nordic Return 
After six consecutive months of appreciation, the fund had its first month of negative return in October.


Pareto Nordic Alpha
The fund developed negatively in a declining Nordic stock market in October.


Pareto Nordic Omega
The fund developed negatively in a declining Nordic stock market in October.


Pareto Nordic Corporate Bond
The increase in Covid-19 cases in Europe, followed by new measures to contain the virus, led to higher market volatility and some spread widening. Despite this the monthly return remained positive.


Pareto Nordic Cross Credit
Like September, the turn came at the end of the month. The second wave of corona hit with full force, terrorism was back in Europe and the final round of Trump vs. Biden was on.


Pareto Global Corporate Bond
The fund dropped towards the end when the market weakened, but October was still a month with a positive return above the monthly average.



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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