Portfolio manager comments — Q2 2025
Fund performance was negative during the second quarter.
The holdings with the most negative impact on fund returns were AstraZeneca, Hexagon and Essity. AstraZeneca underperformed due to concerns about tariffs and regulatory changes related to the healthcare sector in the US. Hexagon was negatively affected by its international exposure and sensitivity to the USD. Essity released a quarterly report that came in slightly below market expectations.
The strongest positive contributors were Autoliv, Sandvik and Beijer Ref, all of which delivered strong quarterly reports during the period.
Autoliv exceeded market expectations with results that demonstrated solid resilience. Sandvik also reported stable figures, which were well received in an otherwise uncertain market climate. Beijer Ref delivered a report above expectations and emphasized that the company had not seen any major negative impact from tariff concerns.
During the period, the fund added a new holding in Systemair, a global supplier of ventilation equipment that stands to benefit from a potential improvement in sentiment around the European construction market and energy efficiency in buildings. The fund also increased its holding in AstraZeneca to maintain a significant allocation after the share price declined, and reduced its holding in Assa Abloy due to its relatively high exposure to the US housing market.
We continue to focus on investee companies with sustainable business models and competitive offerings that support resilient and profitable growth.