Portfolio manager comments — Q2 2024
Fund performance developed sideways during Q2. Major contributors included AstraZeneca, Infineon, Novo Nordisk and ASML. AstraZeneca’s new, explicit growth targets as well as positive clinical trial results provide increased confidence to an attractive growth profile over a number of years ahead, while the growth trend for Novo Nordisk continues to look strong. After a weak start to the year, Infineon has rebounded after the company provided additional communication about growth conditions and the ability to maintain its market position in China. ASML continues to post strength, driven by the approaching shift in technology in the semiconductor industry even though 2024 is a year with some cyclical weakness. The new holding in Rentokil has also contributed positively over a short time and we see conditions for the company to continue to perform strongly through streamlining and the successful integration of the Terminix acquisition going forward. Teleperformance also contributed to the fund when the equity rebounded in May, which led us to divest the remainder of the holding. French equities have subsequently lost ground in general due to the political uncertainty that has arisen in France. This resulted in the negative impact from Edenred in particular, and to some extent from Cap Gemini and Air Liquide.
Renewed concerns about further weak demand within biotechnology and medical technology weighed on the holdings in Tecan and Sartorius and, together with the French holdings, had a negative impact on the fund’s performance during the period. We believe that the high quality of the portfolio provides the conditions for a stronger performance going forward.