Attractive issue from Kinnevik

February news revolved around the coronavirus and its spread, which accelerated outside China. This, of course, countered the indications that the infection rate was actually slowing down in China.

Concerns about virus’s impact gradually escalated during the month, causing both stock markets and long bond yields to move down sharply. And credit spreads widened. Understandably, other news was overshadowed, but the Riksbank chose to leave policy rates unchanged. Inflation figures came in lower than expected, leading to a fall in the ten-year bond yield, and this was reinforced by the general worries during the rest of the month.

In the early part of the month, the fund participated in issues of five-year bonds from Kinnevik, Industrivärden and Castellum. Exposures were also increased in insurance company Storebrand and real estate company Vacse. Issues came to a halt towards the end of the month as worries escalated about the coronavirus. The fund reduced its exposures in Tele2 and Stockholm Exergi. We sold a bond in Stockholm Exergi that matures next year as its return was no longer judged attractive. Otherwise, no major changes were made.

The fund strives for a balanced exposure that stands up well even in turbulent times, which we are currently experiencing. It remains to be seen how the virus progresses and what impact we will see in its wake. Predictions are naturally difficult, but it will inevitably some effect on the global economy.

Carnegie Investment Grade fell 0.13 percent this month.

Carnegie Investment Grade is a fund focused on Nordic corporate bonds with high credit ratings. We are in a low interest rate environment, which of course poses a challenge, but strong and stable companies that have a sustainability focus are an attractive combination, and we see sound prospects to achieve a good return over time.


More about the fund

Investment­ Grade A

Grafen ovan visar data för Carnegie Investment Grade A. Carnegie Investment Grade finns även i andelsklasserna: H och B (NOK). Carnegie Investment Grade investerar i obligationer utgivna av nordiska företag....

More info
Buy fund

More articles

A Danish hearing specialist
Carnegie Investment Grade

A Danish hearing specialist

The last month of 2019 offered no major surprises. There was a highly anticipated decision from the Riksbank to raise interest rates by 25 basis point to 0 percent in...

Mona Stenmark 7 January 2020
An ever-greener IG portfolio
Carnegie Investment Grade

An ever-greener IG portfolio

As expected, the Riksbank left interest rates unchanged at the beginning of the month and communicated that increases are likely to occur at a slower pace than previously forecast, given...

Mona Stenmark 2 October 2019
Values – Carnegie Fonder’s Sustainability Report

Values – Carnegie Fonder’s Sustainability Report

Focus is increasingly on sustainability. The concerns are rarely new to Carnegie Fonder because it has always been important to us to invest in companies for the long term and...

Hans Hedström 1 October 2019