In the introduction, the managers write that December was characterized by a general stock market decline, which followed a strong US stock market rally in November. The decline is partly explained by a rebound after November, but also by a continued weak economy and rising interest rates in the US, Europe and Sweden.
The most affected sector was the interest rate-sensitive real estate sector, where the Swedish real estate index fell by 4.8%.
The US Federal Reserve cut interest rates by 25 basis points during the month, but at the same time raised the interest rate path, which caused a negative reaction in the market. The Swedish Riksbank also cut interest rates by 25 basis points during the month.
US equities now account for almost two-thirds of a global index, with Japan next in line at only around 5.5%. Meanwhile, the US S&P 500 had its best year relative to the world index since 1997.
In Europe, economic growth has been weaker in central and northern Europe compared to southern Europe. Germany now has one of the lowest growth rates in the region. In addition, new elections are expected in 2025 in both France and Germany, which could affect economic and political stability.
"In terms of valuation, however, the discrepancy between Europe and the US is beginning to stand out (i.e. European equities are historically undervalued relative to US equities) and if we see that political turbulence decreases, and perhaps that the war in Ukraine is resolved, European stock markets should be able to surprise positively again," the managers write.
In terms of portfolio activity, the fund initiated a position in SCA and added to its holdings in Atlas Copco, Atrium Ljungberg, Hexagon, Essity and Sandvik. At the same time, the Fund took a marginal profit in Securitas.
The largest holdings in the portfolio at the end of the month were Investor, Atlas Copco and Essity, with weights of 7.9, 7.1 and 6.2 percent respectively.
Carnegie Sverigefond, % | December, 2024 |
Fund MM, change in percent | -0,65 |
Fund full year, change in percent | 10,43 |