Portfolio manager comments — Q2 2024
Fund performance was positive during Q2 and the fund rose 2.7% in SEK. The strongest contributions were from
TSMC and the new holding in Apple. The fund purchased the holding in Apple after a downturn in its share price during the outset of the year when the company was significantly underperforming other technology equities. The analysis showed that the market had become too pessimistic about Apple’s performance in China and how the company was lagging behind within AI development. The position in Apple rose by 25% during the quarter. The fund also acquired equities in Broadcom, which rose by almost the same amount after a strong report. HDFC Bank, the fund’s Indian bank holding, was also positive and began trending upward after a period of decline.
Estee Lauder, Edenred and Accenture were the weakest positions during the period as these equities posted two-digit downturns.
The fund sold the holdings in Ecolab, Cooper Companies and EssilorLuxottica to make room for the new holdings in Apple, Broadcom and Edwards Lifesciences. Edwards Lifesciences, which is a global leader within heart valves, is expected to see accelerated sales when new products are launched and healthcare in the company’s major markets increasingly begin to reduce the healthcare queues that arose as a result of the pandemic.
The fund currently has an overweight of approximately 10% within technology. The overweight in Europe was reduced in conjunction with the new investments and is now at approximately 5%, with a corresponding underweight in Asia.