The equity portfolio measured in local currency also had a very positive development in September, and at the regional level there was a broad increase. Emerging markets and Asia rose the most, followed by the US. The contribution from European equities was somewhat more subdued.
If we look at the sector level, there were large contrasts in the development. Technology was by far the strongest sector this month, largely driven by strong sentiment for AI companies. Shares in communication services, consumer goods and utilities also performed well. Defensive consumption, energy and real estate stood out on the weak side.
The fixed-income portfolio also developed in a positive direction in September. For reference, the S&P Global Developed Aggregate Bond (USD) index rose by 0.7 percent. The 10-year yield in the US fell from 4.23 to 4.16 percent.
Weaker developments in the US labour market recently mean that the markets are now pricing in two interest rate cuts from the Fed before the end of the year.
The reporting season for the companies’ third quarter is approaching. Despite signs of a weaker labour market in the US over the past few months, we see that the rate of investment among companies has increased through autumn. This upturn is largely driven by the technology sector, which also makes a positive contribution to GDP growth.
It is hard to believe that the strong earnings trend of the big tech companies will continue for a while longer, and we also sense that this is having a positive impact on the smaller companies.
Although we are still somewhat uncertain about the final effects of the US tariffs, we believe in a solid reporting season overall.
Kind regards, Stein Frode Aaseng
A good risk-adjusted return for you as a customer and investor.
Would you like more information about our services for you or your company?
Feel free to contact us in a way that suits you.
