Blog

Dear valued investors,

We hope this message finds you well. Today, we’re writing to share some essential news regarding a significant change in the investment mandate for the Skandi AIF fund, managed by Robofunds and advised by SoftCapital.

The Original Mandate

As you may recall, the Skandi AIF fund was initially focused on investment opportunities within the Scandinavian region, specifically covering Denmark, Sweden, Norway, and Finland. This approach was grounded in a well-defined rationale, believing in the stable, yet lucrative, markets that these countries traditionally offer.

Economic Trends and Challenges

However, economic landscapes are subject to change, and it is our duty as responsible financial advisors to adapt our strategies in line with evolving conditions. The year 2023 has seen a marked downturn in the economic performance of Sweden. Given that the Swedish stock exchange has a market capitalization of €1.212 trillion, it accounts for a significant portion of the Scandinavian market. For context:

• Sweden: €1.212 trillion
• Denmark: €626 billion
• Norway: $295 billion
• Finland: $256 billion

As you can see, the Swedish stock market alone is nearly as large as Denmark, Norway, and Finland combined. Therefore, its downturn has a disproportionately large impact, not just on Sweden but on the overall fund’s performance, which was previously tied to the Scandinavian region.

A Considered Response

After a thorough analysis and multiple consultations, we’ve decided to revise the Skandi AIF fund’s mandate from a regional focus to a global scope. This will provide us with the flexibility to diversify our investments, thereby reducing risk and enhancing the potential for returns.

The New Mandate

Effective immediately, the Skandi AIF fund will broaden its horizon to invest in carefully selected global markets. We believe that this move aligns well with current economic conditions and positions us to capture emerging opportunities.

Why This Change Makes Sense

1. Risk Diversification: Investing globally reduces dependency on a single market or region, thereby mitigating risk.
2. Leveraging Opportunities: A global outlook allows us to capitalize on growth in emerging and established markets alike.
3. Resilience: A broader investment spectrum provides a buffer against localized economic downturns, such as the one currently affecting Sweden.

Your Trust Is Our Priority

We understand that this is a significant change, and we do not make this decision lightly. We firmly believe that this move is in the best interest of our investors and the fund’s long-term success.

We will follow up with official documentation outlining this change in detail. Our team is available for any questions or discussions you may wish to have regarding this new direction.

Thank you for your continued trust and partnership with Robofunds and SoftCapital.