Instead, let me tell you about a new fund that we just launched. It's something we find a lot more interesting.
Yes, I know what they say: Everybody's so into themselves; I'm the only one who cares about me. But I'll risk it. You just might find it useful.
The name of the newborn: Pareto Nordic Cross Credit. It's a Nordic bond fund. In the local lingo, it's a crossover fund, meaning it has a mix of investment grade and high yield bonds.
If you read this in English, you might appreciate the low interest sensitivity due to a preponderance of floating rate notes, or perhaps the refreshingly boring political environment in the Nordics. In addition, a major element of unrated bonds implies attractive credit spreads and untapped opportunities for our in-house credit research.
“If we really feared a major market meltdown, would we put so much resources into launching a new fund?”
If you receive this mail in Norwegian, you might feel there's something familiar. And you'd be right: We've been doing this for years. It looks a lot like Pareto Høyrente, right? There's a couple of differences, like the extension of the universe to the Nordics, with an added portfolio manager in Stockholm, or perhaps the intensified ESG focus. But we're talking well charted territory and the same lead portfolio manager. Fast forward a few weeks and Pareto Høyrente will probably be merged into Pareto Nordic Cross Credit.
Having said this much (our sales department would probably want to say a lot more), I'd like to point out that November's monthly commentary isn't really void of a market perspective. After all, if we really feared a major market meltdown, would we put so much resources into launching a new fund?
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.