Exports driving Swedish smaller companies funds

Investors in Swedish smaller companies funds may benefit from a report due from EKN, which is expected to outline ongoing strong growth in exports to emerging markets.

EKN (ExportkreditnämndenThe Swedish Export Credits Guarantee Board) is tasked with facilitating exports from Sweden; it has an unlimited borrowing facility with the Swedish National Debt Office, and is therefore in a position to facilitate export credits for companies of all sizes.

According to local business daily Dagens Industri, EKN will be publishing a report showing that exports by smaller companies have never been higher to markets such as China. Data for the past year considers over 5,500 companies, while the value of exports from small to mid sized companies increased by some SEK1.5bn to SEK40bn (€4.25bn).

According to Morningstar Sweden data ranking funds invested predominantly in Swedish small cap, returns in SEK over the past three years have ranged from about 38% to 107%. For longer term investors, returns from some funds have been over 500% in the past 15 years.

Looking at the key holdings of the top performing fund over the three year period gives an indication of the types of holdings these funds are looking for. According to its latest available factsheet, the Carnegie Swedish Small Cap fund held Trelleborg AB B, Meda AB A
Swedish Orphan Biovitrum AB, NetEnt AB B, Hexpol AB B, Elekta AB B, Wihlborgs Fastigheter AB, Fastighets AB Balder B, Mycronic AB, and Thule Group AB shares. This equates to a portfolio that has a high degree of cyclical exposure.

This exposure to cyclical stocks is similar too for the second best performing fund on the list: the Öhman Sweden Micro Cap portfolio included Unibet Group PLC, NIBE Industrier AB B, ITAB Shop Concept AB B, AAK AB, Nolato AB B, Swedish Orphan Biovitrum AB, Fastighets AB Balder B, Modern Times Group MTG AB B, Beijer Ref AB B and Bakkafrost P/F shares among its top holdings, according to its latest factsheet data.

A highly cyclical exposure may suggest a higher degree of volatility in performance, however, the growing diversification of exports to a greater number of markets may offset the risk of individual export markets dipping over shorter periods.

Fund1yr (perf to 29 June)3yr5yr10yr15yr
Carnegie Swedish Small Cap 1A12,8107,0120,9
Öhman Sweden Micro Cap10,6104,7127,9253,5546,2
Carnegie Småbolagsfond10,4104,6
Humle Småbolagsfond16,596,2104,2
SEB Sverigefond Småbolag C/R18,995,4124,1180,9451,3
SEB Sverige Småbol C/R utd18,995,4
Catella Småbolag12,395,494,8157,7292,2
Lannebo Småbolag13,494,3121,3232,3664,9
Handelsbanken Svenska Småbolag utd11,790,9
Handelsbanken Svenska Småbolag11,790,9127,8223,1471,1
Länsförsäkringar Småbolag Sverige11,687,588,1143,5322,4
Evli Sverige Småbolag A6,586,6116,8
Evli Sverige Småbolag B6,586,6116,8
SEB Sverigefond Småbolag13,581,3106,7159,2391,2
SEB Sverige Småbolagsfond utd13,581,3
Nordea Småbolagsfond Sverige14,780,0115,2
AMF Aktiefond Småbolag13,079,8102,6176,6
Swedbank Robur Småbolagsfond Sverige12,579,3108,7181,4503,0
Spiltan Aktiefond Småland5,479,0105,3
Öhman Småbolagsfond A9,078,1103,5190,0436,8
Ohman Småbolagsfond B9,078,1
Skandia Småbolag Sverige6,674,599,7184,8427,2
ODIN Sverige A SEK13,370,0116,8185,3706,4
ODIN Sverige B SEK13,068,7114,1178,2676,5
Granit Småbolag4,468,0101,8
ODIN Sverige C NOK12,564,9104,8153,2572,3
ODIN Sverige C SEK12,464,5104,6152,9571,7
ODIN Sverige II SEK10,963,8120,7200,3
Spiltan Aktiefond Sverige1,363,681,9121,2
Lancelot Avalon-3,862,3
Gustavia Småbolag6,561,966,4
Strand Småbolagsfond9,661,686,1
Inside Sweden1,152,070,0
Spiltan Aktiefond Dalarna3,151,753,3
PSG Micro Cap7,342,326,2
Danske Invest Sverige Fokus-0,131,850,968,3
Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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