Portfolio manager comments — Q2 2024
The month of June was positive for the global equity markets and the World Index rose just 3% in SEK. A weaker SEK benefited the returns on foreign holdings. The US equity markets posted the strongest performance, driven by the major US technology companies. Emerging markets also posted strength in the period. In contrast, the stock markets in Sweden and Europe lagged. The market continued to focus on inflation data and the actions of the central banks. As expected, the European Central Bank cut interest rates at the beginning of June. The upcoming elections in France, UK and US have periodically affected the financial markets.
We increased the fund’s holdings in Handelsbanken Global Digital and Handelsbanken Hälsovård Tema. We also added a new global equity fund, JPMorgan Global Research Enhanced Index Fund, whose strategy is based on Handelsbanken’s sustainability framework. We decreased the exposure to US small caps and made a corresponding increase in European small caps where we currently see greater potential.
We are maintaining our positive outlook on risk assets and expect the inflation rate to continue to decline and that economic growth will gain momentum. In this climate we also expect to see higher corporate earnings. As a result, we believe there are good conditions for a further rise in the equity markets and therefore remain overweight in equities. We see the strongest potential in high-quality companies, small caps, digitalization, healthcare and real estate.