The Storebrand Grön Obligation fund rose 1.14 percent in May, outperforming its benchmark index which gained 1.04 percent. Since the turn of the year, the fund has returned 1.19 percent, also ahead of the index's 1.06 percent increase. This is according to a monthly report from fund managers Gustaf Linell and Johan Hedengren.

Market interest rates continued to be driven by expectations surrounding the conflict in the Middle East in May. The clear decline during the month is interpreted by the managers as investors now seeing a higher probability of a resolution than a month ago.

The Riksbank left the policy rate unchanged at its monetary policy meeting. The central bank's communication is described as balanced, and it is assessed that they likely want to await more inflation and economic data before drawing any clearer conclusions.

Furthermore, the market is explained to once again be pricing in only one rate hike during 2026. Despite persistent geopolitical uncertainty, risk appetite remains high, which according to the management has contributed to both covered bond spreads and credit spreads tightening.

Regarding portfolio activity, the fund increased its positions during the month in Danske Bank, the Municipality of Gothenburg, Landshypotek, SBAB, Sparbanken Mälardalen, Stadshypotek, Vasakronan, and Ziklo.

Following the decline in market rates, the fund has chosen to reduce its interest rate duration and adopt a neutral position.

Interest rate duration and credit duration amounted to 2.88 and 3.84 years respectively at month-end, and the fund's yield stood at 2.69 percent. The fund has an average rating of AA.

The largest issuers in the fund's portfolio at the end of the month were Stadshypotek, followed by Sparebanken Vest Boligkreditt and Nordea Hypotek.

Storebrand Grön Obligation, %May, 2026
Fund M/M, change in percent1.14
Index M/M, change in percent1.04
Fund YTD, change in percent1.19
Index YTD, change in percent1.06