December: continued positive development - increased in Nintendo

After the large sector rotation in November, December became a strong month for equities in general. Global Esports Fund ended up 1.7 percent for the month, for 2020 the increase sums up to 7.9 percent, however, the development was much stronger in USD. Please note that the fund was started in June this year.

The development in the market in December reflects much of what we saw during the year after the Corona outbreak. Strong development for Esport at all levels except the live events which have been completely closed during the year. The professional leagues have grown and the interest from viewers and sponsors has grown. The big new trend, however, is that regular players have signed up for tournaments to participate, ie players pay a registration fee to participate in tournaments where you play for prize money and honor.

2020 was a tough year when it comes to new game releases as the developers have been waiting for the new consoles, which meant that the fourth quarter has now received an extra boost of the season. However, the development of new games for this period has been, and is, a little more strenuous because you want games that work on all consoles. A clear proof of this has been Cyberpunk's problem with the old consoles. Despite this, Cyberpunk and the newly released Call of Duty will probably lead the revenue league for games in 2020.

Looking ahead, the big question will be how much of the growth in 2020 was inflated due to the fact that we stayed at home and how much of the growth will be maintained going forward. Our view is that growth will slow down in 2021 but still maintain a good level and that the new model with constant updates in the games is driving increased gaming in general. The Esport market will get a boost when we run live events again.

On the portfolio side, we have not made such major adjustments during the month. We have bought a little more Nintendo and reduced it a bit in Apple.

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