According to the managers, the stock market showed underlying strength in the final month of the year, despite several of the largest technology stocks experiencing a pullback. This trend reflects some concern that risk-bearing assets, which have performed well during the year, as well as expectations for high growth in so-called hot sectors, may cool off going forward.
Semiconductor companies within the technology sector ended the year with clear gains. For the full year 2025, IT, communications, and financials were the strongest sectors in the US in terms of price development, while financials and certain cyclical stocks in industry and consumer discretionary performed strongly in Europe.
December saw slightly widening credit spreads, which contributed to low returns for corporate bonds during the month.
Macroeconomic conditions indicate that 2026 will be a year of moderate growth at a relatively early stage of the economic recovery. This is expected to gradually contribute to rising corporate profits across sectors.
Early cyclical companies are expected to benefit first, although factors such as import tariffs could disrupt development and squeeze margins. The automotive industry is highlighted as an example of a sector that has historically performed well early in the economic cycle, but where the current improvement is more subdued.
Global companies are judged to have a strong ability to adapt to changing conditions. With improved consumption and increasing investments in both the IT and industrial sectors, real economic prospects appear favorable.
For the Nordic credit market, prospects are described as bright, supported by robust financial institutions, low inflation, low interest rates, and improved economic conditions. Overall, 2026 is expected to be approached with optimism, even though the general risk level for risk-bearing assets remains elevated.
Regarding the fund's activity, holdings in Epiroc and Afry were increased during December.
"Epiroc, together with Sandvik, is a market leader in equipment for the mining industry. Against the backdrop of rising metal prices, especially for precious metals, the investment cycle for mining equipment is expected to strengthen further as profitability improves in both existing and new projects. Profitability and earnings growth at Epiroc are driven by a gradually increasing demand for the company's products."
The main contributors during the month were Boliden, Vestas Wind Systems, and Roche Holding. On the negative side were Microsoft, Medtronic, and Amgen.
The largest holdings in the fund's portfolio at the end of the month were Microsoft, Merck, and Essity, with weights of 6.9, 3.2, and 3.1 percent, respectively.
| Espiria Hållbar Framtid A, % | December, 2025 |
| Fund MoM, change in percent | 0.4 |
| Index MoM, change in percent | -0.9 |
| Fund full year, change in percent | 1.9 |
| Index full year, change in percent | 0.2 |
