At the outset, the managers note that the market climate was calmer in December compared to previous months, and the year ended with a rally.
"Swedish small caps and Nordic quality companies have seen relatively weak performance during 2025, as in recent years. In an environment where investment appetite is gradually returning, volatility is subsiding, and companies are increasingly daring to look further ahead in their planning horizons, we see good prospects for these segments to benefit once again," the managers write.
During the month, the fund divested its holding in Munters and reduced its position in ABB. At the same time, exposure to the materials sector increased, particularly through purchases in Boliden and SSAB.
In December, positive contributions came from Fasadgruppen, Bravida, and Atlas Copco, while the weakest contributors were Afry, Vitrolife, and Addlife.
Fasadgruppen's strength is explained by its UK business, Clear Line, having received four new approvals from the Building Safety Regulator.
"The approvals are especially significant given the longer processing times that have prevailed in the market, and now enable the execution of projects, with the bulk of the work expected to be carried out during 2026. Overall, we assess that Fasadgruppen is well positioned for a recovery in the Nordics, while the rollout in the UK should gradually gain momentum."
Regarding the fund's sustainability themes, Sustainable Cities and Infrastructure, which accounts for 36 percent of the portfolio, contributed the most positively during the month. The weakest theme was Healthy and Well-Functioning Societies, representing 22 percent of the fund, largely due to the negative performance of Vitrolife.
The largest holdings in the fund's portfolio at the end of the month were Atlas Copco, Novo Nordisk, and Vestum, with weights of 9.32, 8.95, and 6.51 percent, respectively.
In terms of sector exposure, industry accounted for 57.8 percent of the allocation, followed by healthcare and materials at 15.7 and 8.3 percent, respectively.
Geographically, Sweden made up 79.2 percent of the allocation, followed by Finland and Denmark at 9.3 and 9.0 percent, respectively.
| Norron Sustainable Equity, % | December, 2025 |
| Fund MM, change in percent | 2.08 |
| Fund full year, change in percent | 1.06 |
