The fund is aimed at investors who believe in Swedish innovation and entrepreneurship. The fund’s holdings include both strong niche players and market leaders. Small-cap companies often have a larger portion of their growth journey ahead of them, which historically has provided better returns than investments in large-cap companies.
Simplicity Småbolag Sverige focuses on Swedish small-cap companies with a positive trend and lower volatility. The fund’s investment philosophy is based on the insight that “good companies are often better than you think, and bad companies are often worse than you think.” The market often underestimates the strength of well-functioning companies and overestimates the potential for turnaround in companies experiencing decline. Furthermore, the market tends to systematically undervalue stable companies in favor of more volatile, “exciting” stocks. This investment philosophy favors a lower-risk profile in selection and avoids riskier, speculative bets.
The objective is to generate long-term positive returns and higher value growth than an index of Swedish small-cap companies.
Simplicity Småbolag Sverige is a light green fund under Article 8 of the EU Sustainable Finance Disclosure Regulation (SFDR). This means that the fund promotes environmental and/or social characteristics but does not have sustainable investment as its objective. At least 90% of the fund’s investments will promote environmental and/or social characteristics. Of these investments, 20% will be sustainable investments with an environmental or social objective. Further information on the fund’s sustainability work is available in the fund documentation.
Key characteristics of Simplicity Småbolag Sverige:
-
A long-term equity investment in Swedish small-cap companies
-
Low fees to maximize your returns
-
Focus on positive trends and low volatility to identify stable and high-performing small-cap companies