Placera has compiled data from the government offices regarding the investment holdings of Swedish ministers and how they have evolved over the year. In total, the combined capital amounts to 34.7 million SEK, with a median portfolio value of 655,565 SEK.
Overall, it has been a strong year for the stock market, and many ministers have portfolios that are performing well. It is worth noting that the favorable conditions, with global indexes in kronor rising by approximately 30%, have contributed to this success. However, there are still some noteworthy aspects that stand out.
Stock Market Kings Abdicate
Two ministers who have previously expressed a significant interest in stocks are Minister of Migration, Johan Forssell (M), and Minister for International Development Cooperation and Trade, Benjamin Dousa (M).
Last year, Forssell stated in an interview with Afv that politicians who own stocks are often viewed with suspicion, as they have access to information that could impact the market. As a result, he decided to sell all his stocks and switch to funds.
Dousa, who took office last autumn, made the same move by selling off around 20 stocks. Currently, Forssell and Dousa have stock portfolios worth 7.8 million SEK and 5 million SEK, respectively, making them the top investors in the government. Both have small-cap funds as their largest holdings.
A New Stock Picker Emerges
Despite the fear of criticism surrounding stock trading, not all members of the government have shied away from it. Minister for Foreign Affairs, Maria Malmer Stenergard (M), owns ten stocks worth over 728,000 SEK and no funds. Thus, she stands out as the government’s most prominent "stock picker." This year, she has made several successful investments.
Her two largest holdings, Investor and Bonesupport, have gained 26% and 103%, respectively, since the beginning of the year. Hansa Biopharma and Mildef have also seen significant increases of 43% and 84%. The only setback has been biotechnology company Genovis, whose value has halved.
Minister for Civil Affairs, Erik Slottner (KD), has also dabbled in stock trading, with mixed results. His heaviest holdings, Swedbank and Astra Zeneca, have both seen slight gains this year. However, Chordate Medical and Eolus Vind have experienced declines of 85% and 47%, respectively.
Divergent Views on Risk Diversification
The optimal number of holdings in a portfolio is a perennial point of contention. Experts argue that too few holdings result in inadequate risk diversification, while too many can lead to limited potential returns due to over-diversification.
Swedish ministers approach this balancing act in vastly different ways. Prime Minister Ulf Kristersson (M) owns only SEB Sverigefond, while Minister for Social Affairs Camilla Waltersson Grönvall (M) invests almost exclusively in the technology fund Swedbank Robur Technology. Meanwhile, Minister for Culture Parisa Liljestrand (M) holds only Ericsson stocks.
On the other end of the spectrum, Benjamin Dousa has spread his savings across 29 different funds. Minister for Education Johan Pehrson (L) owns 24 funds and 22 stocks, while Minister for Schools Lotta Edholm (L) has 23 funds and 7 stocks.
In all cases, the portfolios have shown positive growth throughout the year.
With an insightful look into the investment strategies of Swedish ministers, it becomes evident that their approaches vary widely, reflecting personal preferences and risk appetites. As the stock market continues to evolve, these diverse approaches offer a unique perspective on how decision-makers navigate the complex world of investments.