In 2024, equity markets achieved another year of positive performances. This growth was primarily fuelled by a surge in US stocks amid a strong US economy and continued enthusiasm surrounding AI advances. While most other regional markets also ended the year higher, their performance lagged that of US equities. In a year that was marked by divergence in performances, Ancoria’s equity funds ended the year higher delivering gains to their investors.
Ancoria Carnegie Small Cap Fund
The Fund returned 21.7% in SEK (17.3% in EUR) during 2024 outperforming the OMX Stockholm 30 Index. Small cap stocks were supported by Sweden’s lower interest rate environment that is expected to boost growth and alleviate pressure on small cap companies from elevated borrowing costs. The Fund’s returns were further supported by the Fund’s active asset allocation.
USA
The Ancoria USA Fund led performances in 2024 returning 20.7% in USD (28.4% in EUR). US equities continued their strong performance amid sustained enthusiasm surrounding artificial intelligence, robust economic growth and lower inflation. These factors attracted capital inflows, strengthening the US dollar by 6.6% against peers. Investors’ sentiment was further boosted by strong earnings by tech giants and Donald Trump's election victory as he is expected to promote tax cuts and deregulations. The normalization of monetary policy by the Federal Reserve offered further support to equity returns. In addition, confidence in financials was restored amid better-than-expected earnings results.
High Dividend Sweden
The Fund delivered positive returns of 17.4% in SEK (13.2% in EUR) in 2024 outperforming the OMX 30 Index. The overperformance was predominantly driven by strong stock selection, and an overweight allocation on telecommunication and consumer staples sectors both of whom overperformed other sectors.
Ancoria Global Equity Fund EUR
The Fund appreciated by 15.6% in USD (23.0% in EUR) during 2024, driven by strong performance in US information technology and financial stocks, as well as the strengthening of the US dollar. Its exposure to Japan further enhanced the Fund’s returns.
Japan
The Japan fund generated gains of 14.4% in JPY for 2024 (10.1% in EUR). In overall, Japanese equities experienced a solid recovery after a sharp market drop in August, triggered by an unexpected central bank rate hike. The Bank of Japan's decision to end the negative interest rate policy, combined with a weak yen, created a favourable environment for exports boosting the stock market. Additionally, a sustained rally fuelled by corporate share buybacks, activist funds and retail investors propelled Japanese stocks beyond bubble-era levels.