The managers initially noted that March ushered in a more precarious market environment, characterized by heightened geopolitical tensions and macroeconomic uncertainty. The escalating conflict in the Middle East triggered rapid shifts in risk sentiment, with markets reacting sharply to the evolving news cycle.
Despite these headwinds, the portfolio is described as having demonstrated relative stability. This resilience is attributed to a defensive posture focused on companies with strong cash flows, robust balance sheets, and proven business models.
Commodity markets remained volatile throughout the period, with oil prices climbing above 100 dollars per barrel. According to the managers, this intensified concerns regarding rising costs within corporate supply chains. Consequently, inflation expectations rose, contributing to higher market interest rates, particularly across longer maturities.
During the month, the management team conducted a site visit to Skanska in Warsaw to review regional project operations. The meeting confirmed that activity in the region remains high, with demand underpinned by investments in infrastructure, defense, and data centers. The company's continued commitment to the region is viewed as a sign of confidence in the long-term growth prospects of Central and Eastern Europe.
Furthermore, the credit market was described as volatile yet fundamentally strong, supported by inflows and attractive yield levels. Primary market activity was robust, and the fund selectively participated in issuances from firms including Beijer Ref, Coor, and Afry, all of which are deemed to possess stable cash flows and balanced finances.
The equity allocation stood at 61.5 percent at month-end, consistent with the previous month. The weaker stock market performance in March created opportunities to increase exposure to quality companies; the fund subsequently bolstered positions in Atlas Copco, Volvo, Holmen, and several banking stocks.
At the turn of the month, the fund's three largest holdings were Investor, Atlas Copco, and Volvo, with portfolio weightings of 4.1, 4.0, and 3.8 percent, respectively.
| Carnegie Strategifond, % | March, 2026 |
| Fund MoM, change in percent | -5.08 |
| Fund YTD, change in percent | -1.69 |
