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SEB: Only Small Rebalancing Needs

SEK

SEB believe that “currency rebalancing needs for typical Swedish portfolio managers are only very small this December.”

  • “The most pronounced need is to sell USD/JPY, while it is close to neutral for SEK.”
  • “The stylised portfolio rose sharply for a second straight month, this time by 3.7% to end 2023 at +6.2%.”
  • “Swedish equities were the best performing asset leading to a large need to sell SEK to rebalance allocations. However, this was almost offset by a large need to buy SEK to rebalance the currency hedge as the portfolio increased in value.”
  • “Combining the SEK hedge and allocation rebalancing needs leads to an almost neutral need in SEK corresponding to -0.05% of the portfolio in December.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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