Portfolio manager comments — Q2 2025
Fund performance was positive during the second quarter, rising by 1% in SEK, slightly below its benchmark index*.
The top contributors to fund performance were Autoliv, Axfood and SEB. Autoliv benefited from releasing a quarterly report that exceeded market expectations. Axfood was supported by its relatively local exposure to Sweden, which made it less negatively affected by trade policy concerns and a weak dollar, and by stabilized margins at Willy’s. SEB delivered a stable report during a period marked by uncertainty.
The holdings that negatively impacted performance were Hexagon, Essity and AstraZeneca. Hexagon was weighed down by its international exposure and sensitivity to the USD. Essity released a quarterly report that came in slightly below market expectations, and AstraZeneca underperformed due to concerns about tariffs and regulatory changes related to the US healthcare sector.
During the period, the fund added a new holding in Systemair, a global supplier of ventilation equipment that stands to benefit from a potential improvement in sentiment around the European construction market and energy efficiency in buildings. The fund also reduced its holdings in Sampo and ABB, where valuations had increased.
We continue to focus on ensuring that the fund’s investee companies have sustainable business models and competitive offerings that support resilient and profitable growth.
* SIX SRI Sweden Index GI