Saab and Invisio came to the rescue in a challenging month for the fund, with its top five holdings being Atlas Copco, Volvo, Hexagon, Investor, and Sandvik. Despite a strong start to the year for the engineering sector, the fund faced headwinds last month. The absence of telecom operators or banks in its portfolio, which were among the best-performing sectors, further impacted its performance.

According to Ingemar Syréhn, the fund manager, the strong Swedish krona poses a threat to the upcoming earnings season for the engineering sector, as currency effects are likely to play a significant role. Already, several analysts have revised their profit forecasts downwards in anticipation of this.

On the same day, Hexagon issued a profit warning, causing its stock to plummet by double digits in the morning. The company cited declining sales and adverse currency movements as the primary reasons for the disappointing results.

This turbulent period highlights the importance of diversification and the resilience of certain sectors, such as defense. Saab and Invisio, both players in the defense industry, proved to be pillars of strength for the fund amid market volatility. Their performance underscores the benefits of investing in companies with stable revenue streams and strategic positioning in times of economic uncertainty.

Looking ahead, investors will need to tread carefully in the ever-changing market landscape, considering the impact of currency fluctuations and sector-specific challenges on their portfolios. By staying informed and proactive, they can navigate these obstacles and capitalize on opportunities for long-term growth and stability.

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