EN 
SE 
One of the fund's main sectors cyber security, has had a flying start for the year and has been a favorite for investors. Technology has gone strong and semiconductors continue to develop exceptionally well. That as a direct result of forecasts for AI and the fact that chips and semiconductors are undergoing a megatrend just like the fund's sectors.
Increased demand for cybersecurity is also driven by new reporting obligations and increased regulations in the US, which accelerates the need to implement and complement existing solutions. Our assessment is that this is only the beginning of increased demands on private companies and their security solutions, both in the USA and in Europe and certain parts of Asia. The background is that foreign powers already today direct threats and attacks against Swedish and Western companies and this can lead to vulnerability in a country's total defense.
Cybersecurity is also central to AI development and, given its associated risks, secure solutions are of high importance. Influential Gartner lists risk, threat and security management in cyber security as the two most important technology trends for 2024. Our assessment is that AI will be a strong driver for companies in the cyber security sector that will benefit greatly. This is alongside an already established long-term structural trend with already high demand both from states and companies.
It's hard not to be impressed by Microsoft's position on this. They are leaders in AI offerings with OpenAI and in implementing AI in their services, but they are also market leaders in cloud services and have multiple revenue hosts
Even after January (blue bars), Crowdstrike and Palo Alto, both market leaders in cyber security, are up over 14 % for the year. The reports have generally been good for the sector, especially with regard to the companies' forecasts, which is the part that in recent years has created negative volatility in this segment and the shares.
We are also seeing how traditional defense companies have cyber security as a more central offering to states. These companies also invest heavily in AI via R&D and/or via acquisitions. Saab has, for example, acquired Helsing and Crowd AI to make AI more central to its product portfolio. We also see that the demand for big data and defense technology is increasing sharply.
The fund's exposure to Europe has increased in the last six months and the companies have developed strongly. Several of the companies here are also up over 10 % during the year. The need and demand is still strong and will be so for a long time.
The American economy feels significantly stronger than the European one, at the same time there may be attractive cases in Europe and of course defense stands out. Many analysts felt that we were facing a troubling situation in the US market with the combined expectations (priced in) of interest rate cuts and of a strong economy with growth. After FED chief Jorome Powell clarified that a reduction in March is in order, expectations and pricing around the interest rate level have been adjusted. Despite this, the stock markets have held strong and are close to All Time Highs.
We conclude by stating that American support for Ukraine has now passed in the US Congress.
It is gratifying!