March 2007

March was a volatile month with a big initial dip. However, A.f.f.e, in the end, delivers a positive +3,4% (excl. monthly savings) growth in March 2007, which increase our portfolio value to SEK434.251:- (+6,7% in 2007). Additional SEK2.700:- was paid in from members.

The Board took the opportunity to purchase stocks during the "dark days" in the beginning of March. A.f.f.e invested SEK40.000:- (Cash) in Health Care, Capital Goods (Alfa Laval, Atlas Copco, Sandvik) and Energy industries (Eon, Vestas), and repositioned SEK10.000:- (portfolio) in the Financial sector (Swedbank, SEB). Our monthly savings was invested equally (SEK675:-) in Elekta, Q-Med, Getinge, Apple, which are less sensitive sectors to changes in the business cycle.

Our position in cash was decreased by -37,8% due to excellent purchase opportunities. New cash position is 9,8%. Our exposure to high risk investments has increased to 13,2% (63.158:-), which is above our target of 10%.

Stars in March are Axis (+25%), Q-Med (+21,7%), Electrolux (+12,7%) and Apple (+11,7%), which accounts for 14,9% (SEK64.631:-) of A.f.f.e. The Board used March and its volatile behavior to increase investments in Q-Med and Apple. Bad performer in March was Elekta (-16,2%), which the Board took as an opportunity to increase by 100% (SEK5.000:- in cash).

Good sector development in Consumer Cyclicals (+9,7% excl. inv.), Utilities (+8,5%) and Capital Goods (+4,8%). Finance sector is decreasing (-2,3%) due to uncertainty in global financial markets.

Currently, A.f.f.e needs an additional +3,6% growth to hit the first individual target - a value of SEK50.000/per membership - which is a nice figure halfway to a small car. Maybe in April?

Patrik

Simcorp

Simcorp - har närmast monopol på mjukvara till asset management i Danmark och står inför ett genombrott i USA. Aktien har gatt fran DKK140 mars 2003 till DKK1180 mars 2007.

"SimCorp is a leading supplier of highly specialised software and expertise for financial institutions and corporations – activities, which have established our reputation as "the house of financial know-how"."

Jag föreslar en investering pa SEK10.000:- med finansiering inom teknologiportföljen förslagvis SEK5.000:- fran vardera Ericsson och IBM. Investeringen far initialt ses som en krydda.

Profit Realization Electrolux

A.f.f.e has a 11,2% over-exposure in the Consumer Cyclicals (durable & non-durable) sector. In this category we have Electrolux, which has a 72% ROI (return on investment). Current market price is SEK171,50:-, which is higher than recommended average target level.

I recommend a decrease by SEK8.000:- (28.000:- to 20.000:-).

Patrik

Profit Realization SCA

A.f.f.e has a 4,7% over-exposure in the Material sector. In this category we have SCA, which has a 47% ROI (return on investment). Current market price is SEK388,50:- with a next target level at SEK420:-.

I recommend a decrease by SEK16.000:-.

Patrik

Risk Strategy

During the recent decrease in the stock market the board took the opportunity to purchase new stocks. Portfolio diversification and the cash policy are concious decisions taken by the board to develop and implement a risk strategy. The long-term trend in the stock market is uncertain (see macro analysis). It is a believe of the board to actively and well in advance pursue risk-eliminating strategies.

To minimize exposure to risk in 2007 the board will continue to develop the two variables.

1. Cash Policy - A.f.f.e has about SEK43.000:- in cash (10%), which is a decrease by approx. 50% (SEK87.000:-) since Jan 1st 2007. Wealth is not created in the bank account (as if shareholder value was created in the accounting department...). My recommendation to the board is to increase our cash policy to 25% by the end of May.
2. Portfolio diversification - the board will continue to actively implement the recommended portfolio diversification (see other post) during Q2 2007. My recommendation to members of the board is to take an active approach to this task.

Patrik

Consumer Staples (non-cyclical)

With 0% investments is A.f.f.e still underexposed to Consumer Staples. In times of volatility and uncertainty capital will move to sectors with less risk such as health care and consumer staples (non-cyclical). It is my recommendation to invest SEK20.000:- to gain a 5% portfolio share. Recommended stocks are:

• Axfood (Hemköp, Willys, Dagab och Axfood Närlivs, Sweden)
• Haakon Invest (Ica, Sweden)
• Oriflame (hudvård, färgkosmetik, dofter, toalettartiklar och accessoarer, Sweden)
• Swedish Match (snus och tobak, Sweden)
• McDonald´s (USA)
• PepsiCo (USA)

Patrik

AFFE sänker inköpskurs i Elekta

Styrelsen (med 2/3 beslutsmajoritet) har idag beslutat att investera 5000 SEK i Elekta för att sänka inköpskursen till ca 141 SEK (från tidigare 158 SEK).

/T

Portföljvärde 2007-03-20

Värdet på AFFEs portfölj uppgår per den 20:e mars 2007 till 428.268,89 SEK

/T

Medvind för vindkraften

Det verkar som om AFFEs beslut om att gå in i vindkraftsrelaterade aktier är helt rätt.
Läs en intressant artikel om Vestas på E24

/T

Monthly investment for March made at AIV

2007-03-13, the monthly investment of 2700 SEK was made at Aktieinvest.

• Apple Inc 675 SEK (1.04467 shares á 90.41305 USD)
• Q-Med 675 SEK (6.63931 shares á 100.5375 SEK)
• Elekta 675 SEK (4.98599 shares á 133.875 SEK)
• Getinge 675 SEK (4.38064 shares á 152.375 SEK)

/T