Three-year green bond from Sveaskog
The late-March trend persisted in April, with stabilising prices and buyers returning. Carnegie Investment Grade rose 1.28 percent this month.
The Riksbank kept interest rates unchanged and prioritised other crisis support, including bond and certificate purchases. A package for the real estate market is on the cards, with property companies being asked to reduce rents by 50 percent for impacted tenants and with the government then paying 25 percent.
There were no big changes to the fund this month. After a very turbulent period, we saw a recovery in most sectors, but one that remains weak is debt purchasing. We chose to divest our holding in Intrum as we foresee continued challenges for the company. We have increased our exposure to Ica, which is a stable, profitable group with a defensive business and is also one of the few that are seeing a favourable effect in this crisis.
We also participated in Sveaskog’s issue of a three-year green bond.
The real estate sector is a diversified segment, and the different exposure of the individual companies will determine how hard they are hit by the crisis. We have chosen to reduce our exposure to Castellum and Kungsleden, which focus on offices, and instead increased somewhat in Vacse, which is active in community properties. Community properties and housing are the segments that currently offer greater stability than commercial properties.
During the month, the CF Företagsobligationsfond fund was merged with Carnegie Investment Grade, leading to an increase in managed capital of SEK 1.1 billion. The fund is still managed in the same way, with its mandate unchanged.
Most interim reports have been released at the time of writing and, overall, the first quarter looks relatively good for many companies. But the effects of the coronavirus will become much clearer in the coming quarters, and companies are aware of this. There is still a great deal of uncertainty about where we are in the crisis, but in the midst of this turbulence we can find opportunities for interesting long-term investments, albeit with great caution.