The managers initially note that March proved to be a challenging month for corporate bond investors. The conflict in Iran led to heightened inflation expectations, causing interest rates to rise sharply. The Swedish five-year swap rate climbed from 2.27 percent to 2.87 percent during the month.
Concurrently, credit spreads widened, with the European Itraxx Xover index rising from approximately 260 to 360 basis points. Both the higher interest rates and the widening spreads exerted downward pressure on bond prices.
The primary contributors to the fund's performance during the month were Betsson, Cibus, and Vimian.
On the negative side were SBAB, Swedavia, and Stockholm Exergi.
Regarding portfolio activity, the primary market was relatively quiet. However, the fund chose to participate and extend duration as Cibus, Nyfosa, and Stillfront issued new bonds.
"To capitalize on the higher interest rate levels, we have also sold some floating-rate notes (FRNs) and purchased some fixed-coupon bonds," the managers write.
The fund also divested holdings in Skandia, Nyfosa, and Sdiptech, among others, while initiating positions in Cibus, Billerud, and Region Skåne.
At month-end, the fund's average yield stood at 4.2 percent, interest rate duration was 1.1 years, and the average credit rating was BBB-.
The three largest fixed-income holdings were SBAB, Ziklo, and Cibus, with portfolio weights of 2.9, 1.7, and 1.6 percent, respectively.
| Sensor Räntefond, % | March, 2026 |
| Fund MoM, change in percent | -0.93 |
| Index MoM, change in percent | -0.83 |
