Swedish property highlighted by Carnegie Fonder

Jonathan Boyd
Swedish property highlighted by Carnegie Fonder

While the UK fund market reels from the fallout of M&G gating its Property Portfolio fund, and reports suggesting rising outflows from Standard Life Aberdeen's Aberdeen UK Property fund (https://www.investmentweek.co.uk/news/4007842/investors-flee-standard-life-aberdeen-property-fund-following-gating), in Sweden local provider Carnegie Fonder has instead highlighted opportunities in local property assets via its Carnegie Fastighetsfond Norden, which it acquired from Alfred Berg and whose name has now been changed.

The portfolio manager has remained the same: Jonas Andersson has run the strategy for three years, and previously worked as an equity analyst for more than 20 years, focused on property companies.

Commenting on the asset class, Andersson has noted that commercial property should be included in any well diversified portfolio, that large pension funds own property, and that property securities on the stock market are a good substitute for direct property investments. Doing so in a fund structure gives retail investors and small to mid sized institutions access to property expsoure.

Commenting on valuations, Andersson has suggested that while P/E multiples may look higher than than historically, this need to be put in context of historically low interst rates, which mean that there is potential for additional  increases in property values.

The current top holdings of the fund include:

Holding % of fund
Balder B     9,16%     
Kungsleden AB 7,08%
Fabege B 6,99%
Klövern B 6,65%   
Hufvudstaden A  6,17% 
 Hemfosa Fastigheter   4,48%
Castellum 4,32% 
Pandox 4,22% 
Platzer Fastigheter B  4,12%
Nyfosa 3,92%

Sweden's current repo rate is -0.25%. Inflation in October, according to the CPI rate published by the Riksbank, stood at 1.5% against the bank's 2% target.



Jonathan Boyd
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Jonathan Boyd

Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope.