2021 was without doubt a year of unpredictability and hope that things will return to normality following the turbulence caused at the beginning of the COVID-19 pandemic the year before. While COVID-19 continued to dominate headlines, concerns also focused on higher inflation and any negative impact that a possible reaction by Central Banks worldwide would cause. Investors also saw increased volatility in certain assets. It was a year that once again highlighted for investors the importance of being diversified, investing with a long-term horizon and maintaining investment discipline.
The Ancoria Funds had a very strong year, with top performers being the Real Estate and Commodity Funds. In the last quarter of the year, one of Ancoria’s structured funds was autocalled with a very good return and a new structured fund was launched and subscribed in full.
Real Estate Fund
Our best performing fund for the year. It recorded a performance of 44.0% in EUR (46.2% in SEK) for 2021. The fund aims to generate stable capital growth from investments in the real estate and building sectors. The fund invests worldwide in securities of companies whose activities are concentrated mainly on the real estate sector with an overweight in Sweden. The fund benefited from the ample liquidity and record low interest rates in 2021, which provided a boost to real estate prices and improved households’ economic balance sheets and subsequently, their ability to finance property purchases.
Τhe fund closed the year with a strong positive performance of 40.1% in EUR (42.2% in SEK). The fund aims to generate long-term capital growth by investing in the global commodity markets with a broad exposure to energy, base metals, precious metals, livestock and agriculture. The fund benefited from the economic upswing in 2021, as the high demand from governments and consumers around the world for goods such as electronics, auto parts and infrastructure, led to an even higher demand for inputs such as oil, copper and aluminium.
Ancoria 5-Year SEK Autocall 5.25% Fund – Autocalled one year after its launch
The structured fund was autocalled on the 21st of December 2021, one year after its start date and provided a 4.75% net return. The Structured Fund was autocalled as the OMX Stockholm 30 Index closed on the observation date at 2,319.521, well above the initial strike level of 1,845.113. On the 24th of January 2022, clients who invested in this Fund received their initial investment amount plus an additional cash amount equivalent to a net return of 4.75%, as specified in the Fund conditions.
Ancoria 3-Year SEK Autocall 6% Fund – Launched and subscribed in full
This structured Fund was launched in December giving policyholders the opportunity to earn an attractive gross return of 6% per annum with a yearly early redemption feature as well as conditional capital guarantee at maturity, depending on the performance of the OMX Stockholm 30 and the S&P 500. The Fund invests in structured notes issued and guaranteed by five different highly ranked financial institutions.