The Espiria Sweden Small Cap A fund declined by 7.6 percent in March, underperforming its benchmark index, which saw a 4.4 percent decrease. This was detailed in a monthly report authored by the fund's management team, consisting of Staffan Östlin, Peter van Berlekom, and Niclas Wahlström.

The managers initially noted that the month was characterized by heightened geopolitical tensions, where the conflict involving the US/Israel and Iran contributed to a weak equity market performance.

The market fluctuated between hope and anxiety, with rising oil prices and the risk of an economic downturn taking center stage. The energy market's significance for the Western world became evident, as supply chain disruptions could have far-reaching consequences.

Despite the downturn, stock markets showed some resilience in anticipation of a potential resolution to the conflict. Meanwhile, credit spreads in the Nordic region widened and long-term government bond yields rose, while policy rates remained unchanged.

"Short-term developments will most likely be driven by whether the war in the Middle East can be brought to an end," the managers wrote.

The risk level for risk assets remains elevated, but potential is simultaneously judged to have increased following the price correction that has already occurred. Companies are generally considered to have good adaptability, and in a more positive scenario, the current development can be seen as a temporary interruption in a long-term trend.

The weak performance was largely driven by the holding in Dometic, which plummeted 32 percent after the company signaled weaker sales development at the beginning of the year.

The fund's largest holdings at month-end were Getinge at 7.4 percent and Alligo at 6.8 percent, followed by Raysearch Laboratories and Sinch with portfolio weights of 4.4 percent each. The largest sectors were healthcare, industrials, and consumer discretionary.

Espiria Sweden Small Cap A, %March, 2026
Fund MoM, change in percent-7.6
Index MoM, change in percent-4.4