Erik Brändström, fond manager of Spiltan Aktiefond Investmentbolag, reflects on a cautious November in the stock market. Stockholm’s stock exchange slowed down due to weaker economic developments and geopolitical tensions. The fund’s two largest holdings, Investor and Industrivärden, had a tough month, while Lifco and EQT made positive contributions. Despite this, the fund ended November with a 1% decline, slightly underperforming the benchmark index by 0.7%.
Year-to-date, the fund, known for its low fees, has gained 12.6%, nearly 3 percentage points better than its benchmark index. Over 3, 5, and 10 years, the fund has consistently outperformed the index, with managed capital now totaling 48.4 billion.
Investment companies have taken center stage in the fund’s portfolio. Spiltan Aktiefond Investmentbolag is a passively managed fund that focuses on investing in public investment companies as an alternative to Swedish index funds. The fund’s inception in 2011 involved active selection of companies like Investor, Industrivärden, Lundbergs, and Kinnevik, providing broad exposure to the Stockholm stock exchange.
However, not all investment companies made the cut at the fund’s inception. Vostok Nafta, with a focus on the oil and gas sectors in the former Soviet Union, did not align with the fund’s strategy.
Despite its passive nature, the fund requires periodic adjustments. Changes within the investment companies, such as Öresund’s split into Öresund and Creades, necessitate portfolio rebalancing. Companies like Melker Schörling AB have been acquired and delisted, impacting the fund’s holdings. Kinnevik, for example, has seen a reduction in size due to dividends and divestitures, with companies like Millicom, Zalando, and Tele2 exiting the portfolio.
To ensure the fund’s future resilience and enhance risk diversification, Brändström has introduced new companies with investment-like structures, such as technology firm Hexagon and pharmaceutical giant Astra Zeneca. Due to changes in Kinnevik’s portfolio, Hexagon now holds a larger position in the fund than the traditional Stenbeck company.
The performance of Spiltan Aktiefond Investmentbolag speaks for itself, showcasing consistent growth and outperformance compared to the benchmark index. The fund’s track record over the years demonstrates its ability to navigate market challenges and capitalize on opportunities, making it a favorite among investors seeking long-term growth and stability.
In a market characterized by uncertainty and volatility, Spiltan Aktiefond Investmentbolag stands out as a beacon of stability and growth, offering investors a reliable option for building wealth and achieving financial goals. With a strategic approach to investing in quality companies and a commitment to delivering superior returns, this fund continues to uphold its reputation as a top performer in the investment landscape.