According to the managers, the fund's performance was slightly weaker than the benchmark index during February. The fund lagged the index by 0.5 percentage points, where a positive contribution from sector allocation was offset by weaker stock selection.
Sector allocation was positively impacted by an overweight in capital goods and technology hardware, as well as an underweight in the pharmaceutical sector. However, these effects were partially offset by a forced underweight in the energy sector and an overweight in the media sector.
At the company level, stock selection was slightly negative during the month. Nokia was the largest positive contributor after the company pointed to strong growth prospects in optical networks. Installation companies Instalco and Bravida also performed strongly following reports that exceeded expectations. Furthermore, electrification-related companies such as ABB, Munters, and Beijer Ref contributed positively.
Conversely, performance was weighed down by Vestas Wind Systems following weak guidance regarding margins in the service business for 2026. Link Mobility fell after weak organic growth, while EQT was pressured by concerns over how AI-related changes might affect valuations within private equity.
Regarding the outlook, the managers believe that markets could continue to develop positively during 2026, supported by lower interest rates, tax cuts in the US, and increased infrastructure investment in Germany. At the same time, risks related to geopolitical unrest in the Middle East and volatility linked to both optimism and uncertainty surrounding AI development are highlighted.
During the month, the fund increased its overweight in Volvo following signs of improved freight rates in the US and strong order development. The fund also added Alfa Laval to the portfolio, with expectations of increased demand for liquid cooling in data centers.
Meanwhile, Hexagon was increased to a clear overweight thanks to what the managers describe as an attractive valuation. This was partially funded by reducing holdings in Novo Nordisk and EQT, as well as through profit-taking in DSV following a strong share price performance.
At the end of the month, the fund's largest holdings were Atlas Copco, Volvo, and Nordea, with portfolio weights of 7.03, 5.81, and 5.34 percent, respectively.
Sweden, Denmark, and Finland constituted the largest markets with exposures of 48.73, 20.06, and 15.22 percent, respectively.
| DNB Grønt Skifte Norden S, % | February, 2026 |
| Fund MM, change in percent | 1.36 |
| Index MM, change in percent | 1.92 |
| Fund YTD, change in percent | 3.80 |
| Index YTD, change in percent | 4.73 |
