The PriorNilsson Idea fund fell 2.09 percent in October, which was worse than the fund's benchmark index, which rose 8.66 percent. This is stated in a monthly report.

Initially, the managers note that the third quarter reports and the upcoming US election were in focus during October.

The managers then reported on developments in various sectors during the month, starting with the banking sector, which, with the exception of SEB, delivered strong net interest income, which led to higher forecasts and share prices.

In the engineering sector, developments were instead mixed, with downward revisions ahead of quarterly reports. After the third quarter results were presented, analysts continued to adjust their expectations for 2024 and 2025 downwards.

The managers highlight how SKF indicated that they see signs that the economy may have bottomed out, but at the same time note the lack of clear indications of an imminent recovery. They also underline the strong performance of Traton and Ericsson and mention the weaker performance of Sandvik and Volvo, with Volvo nevertheless expressing cautious optimism.

Furthermore, real estate companies show stability and do not report significant write-downs in property values. Their net operating income and income from property management are improving as interest rates fall, although the rising vacancy rate is described as a challenge in the sector.

"Many real estate stocks have rebounded 10 to 15 percent and now appear buyable. Construction companies also delivered good results, partly thanks to support from infrastructure projects and a faint hint of increased interest in the housing market," the managers write.

The managers also point out that during September the market started to price in a potential victory for Trump. This has had a noticeable impact on the price of gold, cryptocurrencies, the dollar and interest rates, which have all increased.

During the month, the Fund increased its exposure to financials, real estate and information technology companies, while reducing its exposure to industrials.

At the company level, the fund has increased its holdings in Alfa Laval, SEB, SHB, Skanska, AAK, Nibe and Ericsson, and added Sveafastigheter as a new holding. At the same time, exposure to Atlas Copco, Volvo, Traton and Novo Nordisk has been reduced, and holdings in EQT and Alimak Group have been divested.

As of the end of October, the net exposure to equities was +59.3%, with the five largest contributions coming from sold index options, SHB, Ericsson, Skanska and Traton.

The largest holdings in the Fund's portfolio at month-end were Alfa Laval, SEB and Atlas Copco with weights of 7.2%, 6.4% and 6.2% respectively.

PriorNilsson Idea, %October, 2024
Fund MM, change in percent-2,09
Index MM, change in percent 8,66