Monthly commentary Pareto ESG Global Corporate Bond
At this point, it remains uncertain to what extent Trump will implement his policies. However, there is a higher risk of larger U.S. fiscal deficits, less prioritisation of sustainability under the Trump administration, and increased chal-lenges to global trade.
During the month, the fund participated in one new deal with the German healthcare company Gruenenthal, which issued a 7-year €500 million bond. The company plans to refinance its existing 2026 bond, which we own, with a coupon of 3.625%. We are satisfied with the company and appreciate the prudent liability management of refinanc-ing the bond two years in advance. As a result, we decided to take part in the new bond, which landed at a higher coupon of 4.625%.
In the secondary market the fund sold off its position in Amer Sports, as its overall ESG profile did not fully align with the standards we strive for in the fund.
Fund performance was positive in November, driven by the yield carry and duration.
Portfolio management team
Philip Lindgren
Portfolio manager
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