Sweden's SH Pension's portfolio delivered a return of 1.4 per cent in April, driven by a strong recovery in listed equities following a volatile March for global financial markets.

The pension provider said its listed equity portfolio returned 6.3 per cent during the month, with Swedish equities returning 5.4 per cent and global equities up 7.1 per cent.

Its fixed income portfolio returned 0.7 per cent, supported by Swedish fixed income assets, which returned 1.6 per cent during April.

Commenting on market developments, SH Pension head of asset management, Kenneth Norling, said global equity markets staged a strong recovery in April after a “very volatile” and weak March.

Norling said several stock exchanges reached new record highs during the month, supported by a fragile ceasefire announced on 9 April, hopes of a reopening of the Strait of Hormuz and strong quarterly company results, particularly from technology firms.

He noted that energy prices weakened during the first half of April before rebounding later in the month following negative statements from representatives of the US and Iran.

“The longer the Strait of Hormuz is closed, the greater the effect on energy prices, central bank policy and global financial markets,” Norling warned.

He also highlighted divergent signals between equity and fixed-income markets, noting that market interest rates remained elevated, reflecting expectations of future rate increases amid rising global inflation pressures.

“Central bank rhetoric reflects market expectations in a hawkish direction," he said.

"It is clear that the stock market and the fixed income market have different views on how the future will unfold,” he added.

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