Swedish small cap continues strong run

Jonathan Boyd
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Swedish small cap continues strong run

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
Enter Småbolagsfond 22.8
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
Cliens Småbolag 17.4
Nordea Småbolagsfond Sverige 16.6
Odin Sverige 16.5

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

(Source: Morningstar.se)

Jonathan Boyd
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Jonathan Boyd

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