Meriti Neutral monthly report – August 2025

Meriti Neutral share class B rose in value by +0.29 percent during August. The fund has thus generated positive returns during all eight months of the year and the increase totals +5.58 percent. Since the strategy's inception pro forma 2010-06-30, it has returned
+222.1 percent while the correlation to the Swedish stock market has been 0.11.

Overall, August was a positive month for financial markets. Investor sentiment held up as incoming data showed that global activity remains resilient and inflation is under control. US Federal Reserve Chairman Jerome Powell signaled in his speech at Jackson Hole that a September rate cut is possible.

In Europe, the French Prime Minister risks losing a confidence vote on September 8 regarding the government's budget cuts, which increases the risks for European equities and for long-term French government bonds (OATs), whose yields are now close to their highest levels since 2011. A fall for the minority government could lead to President Macron either appointing a new prime minister or calling new elections. During the month, the reporting season for the second quarter of the year continued. The estimated average profit growth in Europe amounts to +4.3 percent. Four out of ten sectors are expected to report rising profits compared to the second quarter of 2024. Technology has the highest expected profit growth (+25 percent), followed by Healthcare (+18 percent). During the month, the fund has net bought companies within Automobiles & Components, Capital Goods and Utilities at sector level. Correspondingly, the fund has net sold companies within Energy, Household & Personal Products and Commercial & Professional Services.

At the end of the month, the fund's largest net positive positions were in the Banks and Retailing sectors, and the largest negative sector exposures were Diversified Financials and Household & Personal Products. The fund's Value-at-Risk (95% confidence, 1 day) has averaged 0.52 percent during the month and the equity market exposure, the fund's estimated beta to global equities, has averaged 0.09. At the end of August, the fund had a total gross equity exposure of 185 percent, consisting of 202 purchased (long) equity positions that were balanced by 201 sold (short) equity positions. The size of the long positions averaged 0.49 percent and the short positions averaged -0.42 percent.