Portfolio manager comments — Q2 2025
Fund performance was positive during the second quarter, rising by just over 6% in SEK, which was slightly below the fund’s benchmark index*. The top contributor was the new holding in Comfort Systems, followed by the Austrian bank Bawag and the Chinese gaming company Netease.
The weakest performer was UnitedHealth Group, which fell sharply after withdrawing its guidance and announcing a CEO change.
The fund has maintained a low exposure to healthcare, as the sector has been negatively affected by the US administration’s efforts to reduce healthcare costs. Payment services company Fiserv also weighed on returns after lowering its growth expectations.
Insurance holdings experienced a pullback during the period due to expectations of increased cost pressure from tariffs. This effect is expected to be temporary, and the fund has retained its exposure.
The largest absolute contributors were Broadcom and TSMC, which continue to benefit from the ongoing AI boom. The fund increased its holdings in both companies while divesting its position in Apple. Apple faces several challenges that increase the risk of not maintaining its growth trajectory.
The fund is positioned with balanced sector, factor and regional risks, and the holdings are selected to avoid obvious exposure to geopolitical or cyclical effects. Our basic view is that geopolitics, inflation, interest rates and the economy will improve in the second half of the year, which could trigger a positive revision trend, lower risk premiums and lower inflation expectations. Such an environment should benefit equities in general and attractively valued quality equities in particular.
* Solactive ISS ESG Screened Global Markets Index