Increased proportion of shares in a positive trend

Continued stock market growth led to a very strong month for the trend-following combination fund NorQuant Multi-Asset from NorQuant Kapitalforvaltning, which now further increases the proportion of shares in the portfolio.

The positive trend in the world’s stock markets continued during March as the market gradually became more convinced that the interest rate peak has passed this time. Oslo Børs had a very strong month and the broad index rose by 4.9 per cent. Other stock markets also performed strongly, for example the American S&P 500 index rose by 3.1 per cent, which converted into Norwegian kroner means 5.2 per cent because the dollar strengthened by 2.1 per cent against the krone.

The commodity market has also reacted positively to expectations of falling interest rates. For example, the price of WTI oil rose by 6.3 percent to 83 dollars a barrel and the price of gold by 8.9 percent to 2,238 dollars per ounce. The world’s central banks have been big buyers of gold over the past two years, and the biggest buyer in 2023 was the Chinese central bank, which has continued to buy in 2024.

The positive stock market trend led to another strong month for the trend-following combination fund NorQuant Multi-Asset from NorQuant Kapitalforvaltning. The increase for the fund in March was recorded at 5.2 per cent. The biggest contributors were the fund’s investments in broad American and European stock indices.

In the positive share market trend, the fund’s exposure to shares is further increased to 87 per cent, from the previous 75 per cent. It is the absolute highest proportion of shares since the fund’s inception and the increase occurs mainly in broad indices of emerging markets and US technology companies and occurs at the expense of reduced exposure to fixed income investments. After the changes, the portfolio consists of 87 per cent shares, 8 per cent interest and 5 per cent listed property.

– As recently as November last year, the shares made up only 28 per cent of the portfolio and it is gratifying that our trend-following model has succeeded well in capturing the change of scene in investors’ appetite for risk and adjusting the exposure accordingly, says portfolio manager Erik Lidén.

Since the fund’s inception in January 2021, the rise for the fund is 43.8 per cent compared to 25.9 per cent for the benchmark index.

The fund belongs to risk class 3 on the risk scale 1-7, where 7 indicates the highest risk.

For more information, contact
Erik Lidén +46 70 270 9541

NorQuant Kapitalforvaltning is a Norwegian securities company owned by NorQuant AS with over 600 shareholders. The company strives to become the leading player in quantitative rule-governed asset management in the Nordic region. With an analysis team consisting of experts in quantitative finance, machine learning and mathematics, combined with practical experience from institutional asset management, the company develops innovative management strategies to automatically find signals in large amounts of data. The company currently manages the fund NorQuant Multi-Asset, which is available i.a. on Nordnet, Pareto, Njord, and via most banks and brokerage houses on request.

For more information about the company, visit www.norquant.no

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