Swedish manager Carnegie Fonder’s Strategifond has announced its return over the 2016 calendar year was 12.7%, taking total return since launch in 1988 to over 5,000% as of 1 January 2017.
John Strömgren, fund manager, says in his most recently monthly update that December alone saw returns of 3.3%, boosting the full year figure, as markets reacted favourably to expectations around US president elect Donald Trump.
Looking ahead, he added that expectations of stronger growth in the global economy, along with weak SEK suggests that industrials such as Volvo and SKF could benefit. The fund has been financing additional purchases of Volvo shares from the existing holdings in the company. The fund has also bought SKF shares. On the bond side, the fund has invested recently in SBB, which invests in residential property.
The fund invests in a balanced portfolio, aiming to achieve total returns from investing in Nordic securities, both corporate bonds offering good yields, as well as equities offering high dividend yields.