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Meriti Neutral share class A fell during the month by -0.27 percent in value and the fund has thus risen by +5.23 percent since the turn of the year. Since the start of the strategy pro forma on 30/06/2010, the fund has returned +190.4 percent while the correlation to the Swedish stock market has been 0.11.
September was marked by central banks. A reduced inflationary pressure gives room to lower key interest rates. The Federal Reserve lowered the US key interest rate by 0.50 percentage points and in Europe both the ECB and the Riksbank lowered it by 0.25 percentage points, in line with market expectations. The common denominator was the central banks' implied message that more rate cuts are to be expected in 2024, subject to "incoming data".
At the end of the month, extensive fiscal stimulus measures were announced in China, which triggered large price increases on the stock exchanges in Shanghai and Hong Kong. The broad European stock index S&P Europe 350 Index fell by -0.4 percent during the month. At sector level, the spread in outcomes was large. Materials, Real Estate and Utilities developed best, while companies within Information Technology, Energy and Health Care developed the worst.
In October, the companies' reporting of the third quarter's results begins. According to data from LSEG I/B/E/S, profits in Q3 2024 are expected to be 5.7 percent higher than the corresponding quarter last year. The companies within Basic Materials show the strongest expected growth (+32 percent), while the companies within Energy are expected to show the weakest (-14 percent). Volatility in the fund was low during the month and it generated positive returns on 11 out of 21 trading days.
The fund's Value-at-Risk (95%, 1 day) averaged 0.34 percent during the month and the exposure to the stock market, the fund's estimated beta to the world index, averaged 0.15.