Portfolio manager comments — Q2 2025
Fund performance was positive during the second quarter of the year, rising by 4.5% in SEK, primarily driven by the Taiwanese semiconductor company TSMC, which benefited from the continued AI boom. The strong demand for advanced chips for AI data centers has strengthened the company’s growth outlook.
SK Hynix, a South Korean memory manufacturer, also contributed positively as demand for DDR5 and HBM memory for AI servers increased, leading the market to take a more optimistic view of the company’s future growth.
The Korean bank KB Financial also contributed. South Korea’s equity market has been one of the strongest equity markets in Asia during the first half of the year, driven by reform expectations, political stability, and capital-friendly initiatives from the government.
At the same time, the fund’s Chinese internet holdings underperformed. Alibaba had the most negative impact due to subdued domestic consumption and intense price competition in e-commerce. JD.com also came under pressure due to concerns about higher costs related to new initiatives, such as food delivery.
New holdings added to the fund included Kakao, Tencent Music, and Wuxi XDC, while the Indian bank Kotak Mahindra Bank was divested.
The fund maintains its focus on strong companies within technology and digitalization.