While there may have been significant interest in the post-election bounce in values of UK assets since December, the performace of small cap stocks in Sweden has been another area of stellar returns, according to latest data from Morningstar Sweden.
Average return over 3 months is 15.35% in SEK terms, according to latest data, with a number of sector constituents offering around 20% or higher returns over the period.
|Fund||3M return % (SEK)|
|SEB Micro Cap||24|
|Spiltan Aktiefond Sverige||19.9|
|Plus Mikrobolag Sverige Index||19|
|SEB Sverigefond Småbolag||19|
|Swedbank Robur Småbolagsfond Sverige||18.7|
|C Worldwide Sweden Small Cap||17.6|
|Nordea Småbolagsfond Sverige||16.6|
Looking at the most recent monthly manager reports for some of these funds indicates that industrials remains a key sector exposure, for example in the three funds that performed best over the three month period covered in the table above. Additionally, individual companies such as Beijer Ref and Lifco had very strong Q4 performances; Spiltan manager Pär Andersson notes that these two stocks gained 23% in the last quarter of 2019, while Storytel, one of his top 10 holdings, gained 34%.
Comparing the sector against peers in other European markets over six months and a year, also points to strong performance coming from the Swedish small cap sector - in SEK terms; against UK small cap the performance is relatively the same over the periods considered, but consider that sterling strengthened against SEK in the August-October 2019 period, before the exchange rate stabilised in the October-December period. Against the euro, SEK strengthened in the October-December 2019 period, according to data from exchange rate provider XE.
|Category||6M % (SEK)|
|UK smaller companies||18.4|
|Swseden small/mid cap companies||12.9|
|Nordic small/mid cap companies||11.1|
|Switzerland small/mid cap companies||9.1|
|Germany small/mid cap companies||9.1|
|US smaller companies||5.6|
|Asia ex-Japan small/mid cap companies||2.8|
|France small/mid cap companies||0.3|
|Category||1Yr % (SEK)|
|Sweden small/mid cap companies||41.4|
|UK smaller companies||40.4|
|Switzerland small/mid cap companies||37.7|
|Nordic small/mid cap companies||36.3|
|US smaller companies||32.2|
|Germany small/mid cap companies||29.4|
|France small/mid cap companies||19.3|
|Asia ex-Japan small/mid cap companies||15.8|