The Espiria 30 A fund rose 0.8 percent in July, which was worse than the fund’s benchmark index, which rose 1.5 percent. Since the turn of the year, the fund has returned 9.7 percent and is thus better than the index, which has increased 6.0 percent. This is evident from a monthly report from the management team consisting of Peter Van Berlekom, Jakob Wikander, Huizi Zeng and Stefan Pari.
Initially, the administrators write that July was a weaker month after the strong market development that marked the first half of the year. In addition, the technology sector’s strength has moderated somewhat in July, while more cyclical sectors such as health care have fared better.
“Probably the expectations for the results of the largest companies in the second quarter have been too high
optimistic given real outcomes. With highly valued large companies (among other Mag7 companies), the tolerance for disappointment is low. In the long term, however, companies such as Microsoft, Alphabet and Meta, all of which are existing holdings, have developed very well operationally, which suggests that the correction on the stock exchanges should be undramatic and of limited magnitude.”
For the fund, the development could be linked to a combination of interest-bearing investments, a weaker krona and a strong development from the Swedish share holdings, despite the weakness of the technology sector.
Furthermore, the trustees write that economic activity is at a low speed, that inflation is on the way down and is close to the central banks’ targets in many places.
“A reduction in key interest rates has begun in Europe, where the US is expected to follow suit. With this as a background, risk assets are still interesting. We have chosen a well-balanced exposure to precisely this type of risk assets. For corporate bonds, the development as before is well in line with our vision scenario for the whole year.”
The fund’s largest holdings at the end of the month were Skandiabanken, Danske Hypotek and Open Infra, with portfolio weights of 4.4, 4.0 and 2.9 percent respectively.
The fund had the largest sector exposure to technology, followed by healthcare and consumer.
Espiria 30 A, % July, 2024 Fund MM, percentage change 0.8 Index MM, percentage change 1.5 Fund this year, percentage change 9.7 Index this year, percentage change 6.0
Alex Kennegaard
News agency Finwire
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