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
The small cap fund returned 21.7% in SEK 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 the elevated borrowing cost. Fund’s returns were further supported by positive impact from stock selection and asset allocation.
USA
The Ancoria USA Fund led performance in 2024 with a 20.7% in USD (33.2% in SEK). US equities continued their strong performance amid sustained enthusiasm for artificial intelligence, robust economic growth and easing of inflation. These factors attracted global capital, strengthening the dollar by 6.6% against peers. Strong earnings from tech giants further boosted investor sentiment, while market optimism surged after Donald Trump's election victory, driven by his plans for tax cuts and deregulation as central banks began normalizing policies. Confidence in financials was also restored, supported by better-than-expected earnings results.
High Dividend Sweden
The Fund delivered positive returns of 17.4% in SEK in 2024 outperforming the OMX 30 Index. The overperformance is 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
This fund appreciated by 15.6% in USD (27.7% in SEK) during 2024, driven by strong performance in US information technology and financial stocks, as well as the strengthening of the dollar. Its exposure to Japan further enhanced the fund’s returns.
Japan
The Japan fund generated gains of 14.4% in JPY for 2024 (14.2% in SEK). Overall Japan 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.