Close

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

Carnegie Investment Grade A

Carnegie Investment Grade är en räntefond som investerar i företagsobligationer med stort hållbarhetsfokus och höga kreditbetyg. Fonden investerar i hållbara bolag, som har en lägre risknivå då frågor som berör...

More info
Buy fund

More articles

The summer ended on a high note
Carnegie Investment Grade

The summer ended on a high note

The market regained its momentum in August, and there is significant demand from investors as a result of inflows and growing cash positions. This was of course reflected in great...

Mona Stenmark 3 September 2020
Signs of resilience and stability in the real estate sector
Carnegie Investment Grade

Signs of resilience and stability in the real estate sector

The high summer month of July was calm as expected, and we saw limited activity in the primary market. The market is dominated by buyers, which drives up prices and...

Mona Stenmark 5 August 2020
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