The managers describe May as a month where risk appetite improved across financial markets. Although geopolitical uncertainty has not dissipated, the market is increasingly seen as pricing in the avoidance of the most negative outcomes related to energy supply and global trade.
Performance among the fund's holdings was broad-based, but several large positions provided significant support to returns. Serial acquirers performed particularly strongly, as valuations appeared attractive according to the managers.
Vestum and Sdiptech were among the most important positive contributors. The managers point out that both companies show signs of improved underlying performance, with rising organic growth, improved margins, and higher operational stability. This development is now considered to have started gaining more traction in share prices.
'SSAB also performed strongly and contributed positively to the fund's return. Over several years, the company has implemented significant operational improvements while the balance sheet has been considerably strengthened. Furthermore, steel prices have been supported by tariff-related measures in both the EU and the US', the management team continues.
On the negative side was Alfa Laval, which pulled back following strong price performance earlier in the year. Skistar and Lindab were also among the weaker holdings during the month.
Exposure to the forestry sector also weighed on returns. However, the managers still see potential in several forestry companies, which are deemed to be trading at attractive levels. These companies are expected to benefit if the economic cycle broadens and investment appetite and risk sentiment continue to strengthen.
Among the fund's sustainability themes, Sustainable Cities and Infrastructure provided the best contribution. The theme accounted for 37 percent of the fund. Climate and Environment contributed marginally negatively and represented just over 2 percent of the fund's weight.
At the end of the month, the fund's three largest equity holdings were Atlas Copco, Vestum, and Hexagon, with portfolio weights of 9.10, 7.16, and 5.47 percent, respectively.
The geographical distribution consisted of 88.2 percent Sweden, followed by Finland and Norway with exposures of 7.3 and 4.5 percent, respectively.
| Norron Sustainable Equity, % | May, 2026 |
| Fund MTD, percentage change | 3.43 |
| Fund YTD, percentage change | 3.95 |
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