Ericsson’s ‘dethroning’ by arch rival Hauwei key marker for Sweden equity funds

Ericsson, the world’s hitherto biggest mobile telecommunications network equipment supplier may have been bypassed by China’s Hauwei last year in terms of total sales – a change that could have significant implications for Sweden equity investors.

The ‘dethroning’ is yet to be confirmed, as Ericsson is not presenting its full year figures for 2012 until 31 January – but given the numbers already published by Hauwei, there is a good chance the Chinese company has just squeezed past the Swedish company on the basis of total group sales, some analysts suggest.

Huwei has for a number of years grown its sales much faster than Ericsson.

The change may have significant implications for investors in Swedish equity. Ericsson has been a key telecoms supplier for the past century, first in its home market, but more recently obtaining a global reach through the development of mobile network standards such as GSM, which enabled network operators – the buyers of Ericsson’s technology – to massively increase their customer reach.

Today the company claims that over 1,000 mobile telecommunications networks in 180 countries use its equipment, with more than 40% of the world’s mobile traffic passing through them. The company employs over 100,000 staff worldwide.

The SEK206bn market cap makes Ericsson a mainstay of Stockholm’s OMXS30 index. However, the ‘B’ shares are down about -5.7% over the past 12 months, according to data from Nasdaq OMX, which produces the OMXS30.

A number of both passive and active funds will be looking closely at the upcoming results, according to fund holding data from FE. This includes both domestic branded funds, as well as funds provided by global brands.

Fund Holding in Ericsson %
DB X-Trackers – Stoxx Europe 600 Technology Short Daily ETF – Nov 08 (DTB3) 13.02
DB X-Trackers – Stoxx Europe 600 Technology ETF – Nov 08 (DTB2) 13.02
iShares – MSCI Sweden Index – Mar 96 (AGH4) 8.28
Swedbank Robur – Ethica Sverige MEGA – Jan 04 (FHX4) 5.64
Swedbank Robur – Sverigefond MEGA – Jan 04 (FIG1) 5.22
Global X – FTSE Nordic Region – Mar 11 (NAL7) 5
Danske – Sweden – Apr 97 (DN76) 4.44
Dexia – Equities B Nordic – Oct 97 (DO67) 4.4
Swedbank Robur – Ethica Stiftelse – May 04 (FHX2) 4.4
Carnegie – Strategifond – Jan 91 (O866) 4.19
SIP – Fidelity Global Technology Pn S6 – Mar 06 (OH73) 4
FF – Global Technology – Sep 99 (FF41) 4
Aurum – Fidelity Technology – May 04 (ZN48) 4
SIP – Fidelity Global Technology S6 – Mar 06 (OH72) 4
Universal Investment – Acatis Aktien Europa UI – Dec 05 (W627) 3.65
SSGA – SPDR S&P International Technology Sector – Jul 08 (GVJ1) 3.52
Pioneer Lux – European Equity Value – May 08 (CHS5) 3.4
CF Odey – Opus – Aug 01 (K786) 3.2
AXA Wealth – CF Odey Opus – Dec 08 (DWF9) 3.2
Quantex – Global Value – Jul 08 (DZF6) 3.2
Skandia – Odey Opus Pn – Dec 12 (I2AK) 3.2
Skandia – Odey Opus – Dec 12 (I2AJ) 3.2
AXA Wealth – CF Odey Opus Pn S4 – Dec 08 (DWG5) 3.2
Pioneer Funds Austria – Select Europe Stock – Jan 99 (C9F3) 2.95
Swedbank Robur – Talenten Aktiefond MEGA – Jan 04 (FIG2) 2.89
Swedbank Robur – IP Aktiefond – Jan 04 (FIB2) 2.85
Swedbank Robur – Kapitalinvest – Jan 75 (FIB5) 2.85
Swedbank Robur – Allemansfond IV – Jan 04 (FHW0) 2.81
M&G – Pan European – Jan 95 (MA69) 2.3
Swedbank Robur – Mixfond – Jan 04 (FIC5) 1.73
UBS – (Lux) Equity SICAV – Global High Dividend – Apr 11 (NLF2) 1.04
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