After a strong autumn, stock markets continued to perform well in January, with the MSCI World Index rising 1.72%, the European STOXX 600 rising 3.18% and the Swedish OMXS30 rising 5.05%. The driving forces were signs of improvement in the economy, continued relatively stable inflation and strong quarterly reports with increased order intake and good profitability from several Nordic and global technology, consumer and industrial companies, including ABB, Sandvik, Epiroc, Atlas Copco, Royal Caribbean Group, Mastercard, Meta and Caterpillar.
As of 30 January 2026, our Nordic fund, NE Strategy, has received the highest rating of 5/5 in Overall Total Return, Consistent Return over 10 years and since the start of Lipper Leaders. As confirmation of our strategy, NE Strategy was named the best Nordic fund in Europe over the past five years by the rating agency Lipper in 2024 and the best Nordic fund over the past five years by Lipper France in the spring of 2025. The award underscores the importance of investing in quality companies over time – an important part of our investment strategy.
Leading indicators in the industry, such as purchasing managers’ indices and order intake, point to a gradual improvement in the global economy in parts of the engineering, mining and infrastructure sectors.
Developments at the beginning of the year remind us of the importance of a long-term, fact-based investment approach. We continue to focus on companies with strong balance sheets, sustainable cash flows and a proven ability to translate structural trends into lasting profit growth. It is these types of sustainably profitable companies that are best positioned to generate stable and attractive returns over time.
The Swedish krona has strengthened over the past year, particularly against the USD, JPY and EUR. This had a negative currency effect for Swedish investors in foreign assets, while at the same time dampening imported inflation.
Despite geopolitical tensions, global GDP grew by around 3% in 2025, with forecasts gradually being raised during the second half of the year. The outlook for 2026 is positive, with conditions gradually improving for broader profit growth, supported by more stable macroeconomic conditions and continued investment in industry, infrastructure and digitalisation. The current geopolitical situation calls for a disciplined selection of high-quality companies with long-term competitiveness.
Nordic Equities invests based on a fact-based, long-term analysis model that focuses on historical experience, structural themes and companies’ ability to generate sustainable profit growth. The model is based on the assumption that stock returns over time are driven by profit growth rather than short-term sentiment changes or thematic rotations.
Fact sheets and information brochures are available on request or at www.nordeq.se
