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.

Published: 05 September 2024

Monthly commentary Pareto ESG Global Corporate Bond

Towards the end of September, China announced a large stimulus package of fiscal, monetary and property-related stimuli aimed at stimulating demand, recovering the economy and stabilising asset prices at the same time. The announcement induced a large positive shift among the investor collective and will raise economic growth in the short term.

The primary market has started after the holidays, with the Nordics in particular standing out with very high activity. The fund invested in one company in the primary market, Belgian Azelis, which is a globally leading supplier of chemical ingredients to customers in several sectors. Furthermore, the company was ranked number 1 in ESG among 205 competitors in the same industry by Sustainalytics 2023.

September was a good month for the fund, driven by the good cash return and lower market rates.

The fund is classified as an article 9 fund under the SFDR Disclosure Regulation.

Portfolio management team

Philip Lindgren

Portfolio manager

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. This is marketing communication.