The Espiria SDG Solutions A fund fell 2.9% in December. Over the past year, the fund rose 12.2%, which was worse than the fund's benchmark index, which rose 23.0%. This is according to a monthly report from the management team consisting of Peter Van Berlekom, Stefan Pari, Huizi Zeng and Jakob Wikander.

At the outset, the managers point out that December was characterized by a weaker performance on world stock markets, while several indices dominated by technology stocks showed a strong performance.

In 2024, technology-heavy sectors such as IT and communications dominated, while other stocks showed more normal returns, with strength in the US and Japan but weaker in Europe. The Nordic credit market remained stable and delivered positive returns during the year.

SCA is a new holding in the fund.

"SCA is Sweden's single largest forest owner. SCA's industrial operations include the production of sawn timber, packaging materials and pulp. With a clear agenda to become self-sufficient in renewable electricity, the company is developing several wind farms on its own land. Through efficient forest management and good forest growth, the carbon footprint is an important component in achieving climate goals," the managers write.

In conclusion, the managers express a cautiously optimistic view of the stock market year 2025. Although economic growth is relatively low, they believe that the bottom has now been passed. Inflation is no longer seen as a problem at this stage, and real economic conditions are seen as generally stable.

The biggest challenges are identified in the high valuations and expectations for some of the largest companies. At the same time, managers highlight that valuations for many other companies are at reasonable or even low levels, which may help to balance market performance going forward.

Among individual companies, TSCM and BYD made the most positive contributions during the month.

The largest holdings in the Fund's portfolio at the end of the month were Microsoft, Schneider Electric and Novo Nordisk with weights of 7.6, 4.0 and 3.8 percent respectively.

At the end of the month, the fund had the largest exposure to the industrial, healthcare and technology sectors. At the same time, the fund had the largest exposure to the US, Sweden and Denmark.
Espiria SDG Solutions A, %December, 2024
Fund MM, % change-2,9
Full year fund, % change 12,2
Index full year, % change 23,0