Portfolio manager comments — Q2 2025
Fund performance was positive during the quarter, rising by nearly 6% in SEK.
The largest contribution came from the Taiwanese semiconductor company TSMC, which continues to benefit from the AI boom, with strong demand for advanced chips for AI data centers. South Korea’s SK Hynix also contributed positively, as demand for memory for AI servers—both DDR5 and HBM—has increased, leading the market to take a more optimistic view of its future growth.
The Chinese gaming company Netease also performed well, driven by continued optimism around new releases. The Hong Kong Exchange benefited from a strong IPO market in the region, with capital inflows reaching near-record levels and a significant increase in listings during the first half of 2025.
Meanwhile, Chinese tech giants such as Alibaba, JD.com and Tencent underperformed. Alibaba had the most negative impact during the quarter, affected by subdued consumption in China and intense competition in e-commerce. JD.com faced market concerns about its new initiatives, such as food delivery, despite its core business remaining relatively strong.
The fund made several portfolio changes during the period. The holding in India’s Hero Motocorp was divested, along with some companies from the merger with the Brazil Theme in Q1. New investments were made in South Korea’s KB Financials, China’s Tencent Music, and Chinese pharmaceutical companies Sichuan Kelun-Biotech and Wuxi XDC.