Carnegie’s Sweden-domiciled Micro Cap fund, which launched 31 January and has been registered in Luxembourg, has reported gains of some 3.73% in its first month.
The fund, registered with Luxembourg regulator the CSSF as and ‘OPC ETR’, or foreign UCI, is focused on Swedish companies with a market capitalisation value between SEK0.5bn-5bn, and which are listed on the Stockholm stock exchange and the First North market. From this universe of some 400 firms, the fund focuses on a holding of some 25-30 stocks, however, the fund will avoid start-ups, highly leveraged businesses, biotech and commodity companies. According to the fund factsheet, some 6% of the Stockholm stock exchange value is made up of this universe.
IPOs are described as “common in this segment” and Carnegie claims “good access” to such investment opportunities.
The fund is set to close when it hits SEK2bn under management while setting an investment minimum of SEK250,000, or SEK20,000 monthly.
In the Swedish fund market, Sweden equity funds overall were the most popular asset class over the past year according to net flows recorded by the Swedish Investment Fund Association. This also takes place in context of a near-ubiquitous market penetration rate of funds through a combination of household savings and pension savings – including the self-select portion of the long-term savings market through the PPM platform operated by the Swedish Pensions Agency. PPM lists three ‘micro cap’ funds from other providers currency, investing in Swedish or Nordic equity, offering management fee levels of between 0.44%-0.8% given the rebates available on the platform – significantly below the fee of 2% posted on the Carnegie fund’s factsheet.
The registration lodged with the CSSF suggests that Carnegie may also be looking for investors outside the local market for its funds.
The Micro Cap fund is managed by Viktor Henriksson who also runs the Carnegie Småbolagsfond, a Swedish smaller companies equity fund that was launched at the end of 2012, and which has returned some 195% since then.