The Norron Nordic Sustainable Corporate Bond fund rose 0.78 percent in May. Since the beginning of the year, the fund has returned 1.08 percent. This is stated in a monthly report from the management team consisting of Peter Werleus, Jan Törnstrand and Jesper Laudon.

Initially, the management notes that returns were driven by falling market interest rates, narrowing credit spreads, and ongoing coupon income.

Despite continued global uncertainty, risk appetite strengthened during the month. This contributed to credit spreads within the IG segment narrowing by approximately 5 basis points.

Several new investments were made in the fund during the period. These included H&M, Balder, TVO, Stockholm Exergi and Assa Abloy, all in the form of fixed-coupon green bonds.

The portfolio changes meant that both credit duration and interest rate duration increased during the month. Credit duration amounted to 3.6 years, compared to 3.3 years the previous month, while interest rate duration rose to 2.4 years from 2.2 years.

At the same time, the fund's yield fell marginally to 3.5 percent. The allocation between investment grade and high yield, however, remained unchanged compared to the previous month, standing at 84 and 16 percent respectively.

At month-end, the fund's three largest holdings were Stockholm Exergi Holding, Sveafastigheter and Hufvudstaden with portfolio weights of 2.05, 1.71 and 1.46 percent respectively.

Norron Nordic Sustainable Corporate Bond, %May, 2026
Fund MTD, change in percent0.78
Fund YTD, change in percent1.08