Portfolio manager comments — Q2 2025
Fund performance was positive during the quarter and rose by 3,85% in SEK.
The second quarter of the year began with rising tensions in financial markets. The US introduction of broad import tariffs—referred to as “Liberation Day” on April 2—triggered sharp reactions in global financial markets, including falling government bond yields, widening credit spreads, and broad equity market declines. Geopolitical tensions also intensified, primarily due to the escalation of the conflict between Israel and Iran.
At the same time, central banks responded in different ways. The European Central Bank (ECB), the Riksbank, and Norges Bank began cautious rate cuts as inflation continued to decline. In contrast, the US Federal Reserve (Fed) kept its policy rate unchanged, citing a still-strong labor market and uncertain inflation outlook. The divergence between central banks contributed to increased volatility in the interest rate markets.
Credit markets were clearly affected at times by these developments but ended June with a well-functioning issuance market and credit spreads that had recovered to levels similar to those seen before Liberation Day.
The fund was positioned for falling interest rates, which contributed positively to performance during the quarter.