Following a weaker March, global equity markets recovered significantly in April. The MSCI World Index rose by 8.92%, the European STOXX Europe 600 by 4.83%, the US S&P 500 by 10.42%, whilst the Swedish OMXS30 increased by 4.48%.
The upturn was driven by an earnings season in which results in several cases exceeded market expectations, particularly regarding order intake in the industrial sector and continued growth in technology, combined with a stabilisation of risk premiums following the geopolitical focus that characterised March.
The US economy continues to show resilience, with a stable labour market and relatively strong demand. In Europe, the inflation picture was more balanced than in the US, but rising energy prices and higher short-term inflation expectations contributed to increased uncertainty regarding interest rates.
The earnings season has so far confirmed a stable underlying trend in the portfolio companies. In the industrial sector, companies including ABB and Epiroc reported strong order intake, indicating that demand in several niches remains strong and, in many cases, exceeds delivery levels. This supports continued strong performance in the coming quarters.
The technology sector continued to show strong earnings growth. Among others, Microsoft, Alphabet, Amazon and Apple reported consistently strong profit growth with several raised profit forecasts. The driving forces were mainly cloud services and investments in AI infrastructure. This trend indicates that demand in these segments is largely structural rather than cyclical.
Consumer-related companies showed a more mixed performance. Underlying demand remains, but the growth rate has normalised from previously high levels, with increased disparities between segments and geographies.
Overall, these trends suggest that the market is currently pricing in continued stable earnings growth, particularly in companies with good earnings visibility and structural demand.
With a constant flow of information and short-term market movements, it is becoming increasingly important to distinguish between what is structural and what is temporary. Our investment model, “Outside view”, is based on placing current events in a historical and global context.
During the month, we noted that our Swedish fund, NE Sweden, ranked first in Dagens Industri’s summary of returns over the past three months amongst nearly 100 Swedish funds. This outcome is a clear confirmation of the strength of our management model and of the value of a disciplined and selective choice of companies.
As we wrote in last month’s newsletter, experience shows that equity markets often react strongly to geopolitical concerns and macroeconomic changes in the short term, but that long-term performance is driven to a greater extent by companies’ earnings growth and adaptability. This underlines the importance of maintaining a long-term perspective.
As at 30 April 2026, our Nordic fund NE Strategy has received the highest rating (5 out of 5) for Consistent Return over 10 years and since inception. In addition, the fund also has the highest rating (5 out of 5) for Total Return over 3 years and since inception. Total Return and Consistent Return are rating categories within the LSEG Lipper Leaders Rating System. The ratings are based on the fund’s historical risk-adjusted returns and show how the fund’s returns have performed relative to comparable funds. In spring 2025, the fund was named the best Nordic fund by Lipper France, based on its performance over a five-year period.
Macroeconomic changes and the current geopolitical landscape point to a continued selective selection of high-quality companies with long-term competitiveness. We focus on companies with sustainable profit growth, pricing power, a flexible cost structure, a strong balance sheet and cash flow generation, as well as a proven ability to capitalise on long-term growth trends. It is this type of consistently profitable company that, over time, is best placed to generate good returns.
In an environment characterised by both structural growth opportunities and macroeconomic changes, it is our assessment that the selection of companies will remain crucial to returns going forward.
The funds’ monthly reports are available under “Our funds” on the website.
*The fund’s performance is in SEK and is reported after dividends and fees. Inflation is not taken into account. Past performance is no guarantee of future returns. The value of the money invested in the fund may rise or fall, and there is no guarantee that an investor will recover the amount invested. It is the responsibility of anyone interested in investing in Nordic Equities’ funds to ensure that the investment is made in accordance with applicable laws and other regulations. Foreign legislation may mean that an investment cannot be made in the funds. The units in our funds have not been, and will not be, registered under the securities laws of the United States or Canada.
Fact sheets and information brochures are available on request or at www.nordeq.se
