Fund performance was positive during the quarter and the fund rose almost 11% in SEK. The Nordic markets showed positive returns in Q1, with Denmark posting the most strength driven by Novo Nordisk, followed by Sweden. Norway and Finland posted weaker performance. In addition to major variations in equity returns between markets and sectors, there were large fluctuations in the Nordic exchange rates, where the SEK and NOK weakened against the EUR and DKK.
The strongest individual contributors to returns were Novo Nordisk, Zealand Pharma, Investor, Pandora, Volvo, NKT, Mycronic, Electrolux Professional and New Wave, while Maersk, Sinch and Nordic Semiconductor had the most negative impact.
New significant holdings include Skistar, Schibsted, Autostore, Stora Enso, EQT, Norsk Hydro, Bakkafrost and Esssity. Divestments in the portfolio included Alfa Laval, Epiroc, Nordic Semiconductor, Addlife and Maersk.
The fund changed its name on 20 March from Norden Tema to Norden. This change provides more liberal investment rules and enhanced opportunities to invest in more value-based equities, although we continue to identify long-term structural growth. We prefer growth companies and avoid unprofitable companies with high debt and business models that are unable to manage the prevailing interest rate levels.