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Investors in Strategifond rewarded in the long term

October’s stock market slide slowed in November, and some markets recovered a little. It is worth noting that emerging markets were relatively strong in November, despite tough US rhetoric on trade tariffs. However, commodities widely fell, including oil, as global demand appears to be waning. Oil prices have also been influenced by speculation about how leading oil nations will regulate their production.

If there was a slight brightening in the stock markets, credit markets experienced the opposite. These have been weak throughout 2018 in a global perspective, but the Nordic credit markets have been relatively robust. This can be partly explained by the fact that Nordic companies usually issue floating-rate bonds, so their value is less affected by rising interest rates. Furthermore, the ECB is expected to reduce its bond repurchases, which has negatively impacted the euro-denominated credit markets. In November, however, the Nordic markets were also infected when investment willingness fell sharply, impacting the pricing of credits.

Carnegie Strategifond fell 0.9 percent in November, which means the performance so far this year is -0.7 percent. It therefore looks like the fund’s performance in 2018 will be quite a bit below the average annual return of around 11 percent over the past ten years. This means that long-term unitholders have still been handsomely rewarded, and we naturally hope that the performance this year will also be at least positive.

The fund continued to buy shares in Dometic and Epiroc during November. We also increased our holding in Essity, which has now performed better due to falling commodity prices, and in Volvo, which appears very undervalued. The position in Industrivärden has been trimmed slightly. Although this share is traded at a discount, it is relatively small. Com Hem has redeemed its bonds, which financed the fund’s share purchases.

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