Skip to main content

News

News and information about our funds and market commentaries.

  1. Monthly reports November 2024

    The result of the US election was a clean sweep for the Republicans, with Donald Trump winning the presidential election and Republicans achieving a majority in both the Senate and the House of Representatives. The initial market reaction was higher market rates and a clear risk-on sentiment, with spreads moving tighter and stocks gaining momentum. Trump’s intended policy is pointing towards lower taxes, broad-based tariffs, deregulation and increased expenditures, which is expected to be inflationary and boost US growth while likely pushing Fed to cut its policy rate at an even slower pace.

  2. Monthly reports October 2024

    In October, after six straight months of declining U.S. Treasury yields, we saw a sharp rebound, with both 10-year and 2-year yields rising by 50 basis points. This shift is partly driven by solid economic data, prompting the market to take a step back from the aggressive rate-cutting expectations we had at the end of last month. Market pricing is now more in line with the Fed’s latest forecast of two 25 basis point cuts for the remainder of 2024.

  3. Monthly reports September 2024

    The main focus during the month was on the Fed, which announced its key interest rate decision. The outcome was a 50 basis point cut, signalling the start of its rate cut cycle. We had expected the Fed to start more calmly with a 25 basis point cut, but the justification from the Fed was that the labour market is showing signs of weakness and therefore a double cut was justified. Furthermore, the central bank believes that a recession is not in the cards and showed an interest rate curve that implies two cuts in 2024, four cuts in 2025 and two more cuts in 2026.

  4. Monthly reports August 2024

    August started volatile after weaker U.S. economic data ignited concerns about a potential hard landing. Simultaneously, Bank of Japan’s decision to lift its policy rate triggered the closing of “carry trade”-strategies, leading to a wide sell-off in global markets. Since then, markets have recovered and recession fears have eased.

  5. Monthly reports July 2024

    American politics have been in the spotlight after Donald Trump survived an assassination attempt and Joe Biden announced his decision to withdraw from the presidential campaign, with Kamala Harris expected to take over. In Europe, there were elections in France and the UK. The outcome in France was a surprise, with the left-wing alliance New Popular Front winning the most seats, followed by the centre party Ensemble and the right-wing party National Rally, but where no party got any majority. In the UK, the outcome was much clearer, as the Labour Party won a landslide victory.

  6. Monthly reports June 2024

    During June, the European Central Bank (ECB) chose to lower its key interest rate to 3.75%. It was the first time since 2019 that the ECB lowered its deposit rate. The Federal Reserve also had a key rate announcement during the month. The decision was to keep rates unchanged, which was widely expected. The FOMC committee guided towards a single rate cut at the end of the year. Market pricing for the ECB indicates two further interest rate cuts in the second half of the year.

  7. Monthly reports May 2024

    Most economists agree that policy rates have peaked for both the Fed and the ECB. The question is rather when interest rate cuts can begin to take place. At the moment there is divergence between Europe and the US, where the US economy has proven to be stronger than many expected. Although forecasts are always uncertain, it looks like Europe will lead the way with interest rate cuts. Already in May, the Swedish Riksbank showed the way by lowering the interest rate by 0.25 percentage points to 3.75% for the first time in 8 years. The market is pricing in an ECB rate cut in June, while a possible US interest rate cut is not expected to take place until September.

  8. Monthly reports April 2024

    “Little did you know. Your home’s really only a town you’re just a guest in (take me to Florida) So you work your life away. Just to pay for a timeshare down in Destin (take me to Florida) " Florida, Taylor Swift, 2024

  9. Swing pricing

    Pareto Asset Management AS has established procedures for swing pricing in accordance with the prospectus, to further improve protection of long-term unit holders, and shield existing holders from bearing trading related costs associated with the subscription and redemption of units.

  10. Monthly reports March 2024

    “There are ways to get there. If you care enough for the living. Make a little space. Make a better place.” (Heal the World, Michael Jackson, 1991)