The technology sector has been buzzing with concerns about how potential tariffs, trade barriers, and sanctions against China will impact the semiconductor industry. However, there have been some positive signals emerging regarding companies’ IT budgets.
Despite the challenging conditions, certain funds have outperformed others significantly.
### Over five years, the fund has increased by 234%
Swedbank Robur Technology A has been performing exceptionally well. Fueled last year by interest rate cuts and inflation easing in the USA. In one year, the fund has yielded a return of 47%, over three years more than 75%, and over five years, the fund has risen by 234%.
The fund is actively managed and invests in large and mid-cap global companies within the IT sector. This includes software, computer manufacturing, communication equipment, semiconductors, and IT services. Most of the investments are in the USA, with the largest companies being Microsoft, Nvidia, Broadcom, Salesforce, and Apple. However, the biggest contributor in 2024 was the Taiwanese semiconductor giant TSMC.
During the fall, the manager, Christian Blink, shifted the fund towards more software, seeing a fairly positive scenario for 2025. At the same time, the exposure to the semiconductor sector was reduced. This turned out to be a successful strategy for the fund’s investors.
### 100 percentage points lower
On the other hand, investing in Swedbank Robur Ny Teknik A may not have been as celebratory. Over three years, the fund has lost almost 30%. In other words, there is a difference of over 100 percentage points between the two funds.
Over five years, the fund has increased by 30%, which is not as dire, but considering that the sister fund delivered 234% during the same period, it might be worth reconsidering one’s investment. Both over three years and five years, the Ny Teknik fund has also underperformed its benchmark by 36 percentage points and 24 percentage points, respectively. It is worth noting that the two managers, Fredrik Stenkil and Jesper Birch-Jensen, have been managing the fund since 2022.
### Fortnox and Yubico in the portfolio
The significant difference between the funds is that while Technology largely invests in large and mid-cap American tech companies, Ny Teknik is an actively managed equity fund that invests in Swedish and Nordic smaller and mid-cap companies. This can include medical technology, environmental technology, and industrial technology.
The fund’s largest holdings currently are Fortnox, Paradox Interactive, Truecaller, Invisio, and Yubico. The short position in the latter is currently at a record high. In December, the fund sold its entire Microsoft holdings and purchased two new companies, the network equipment company Credo and Nova (equipment for chip manufacturing).
However, the fund also has the flexibility to invest up to 50% of its capital in companies outside the Nordic region, which the managers have taken advantage of. Over 15% of the fund is invested in the USA, followed by Denmark, the Netherlands, and Finland. Among the fund’s larger investments are two in the Netherlands: Ayden NV and ASM International.
### Costs the same
The performance of the two funds is also reflected in the fund ratings from Morningstar, where Swedbank Robur Technology A has five stars, while Swedbank Robur Ny Teknik A only receives two. The fund fees for both funds are almost equal, as is the risk level.
| Fund | 1 year (%) | 3 years (%) | 5 years (%) |
|——————————-|————|————-|————-|
| Swedbank Robur Technology A | 47 | 75 | 234 |
| Swedbank Robur Ny Teknik A | 16 | -28 | 30 |
Source: Avanza/Swedbank Robur
In conclusion, while Swedbank Robur Technology A has been a star performer in the tech sector, Swedbank Robur Ny Teknik A has struggled to keep up. Investors may need to reassess their investment strategies based on the contrasting performance of these two funds.