The Odin Norden fund rose 0.83 percent in May, underperforming its benchmark index which climbed 2.78 percent. Since the turn of the year, the fund has declined 0.93 percent, trailing the index's 10.33 percent gain. This is according to a monthly report from fund managers Vigdis Almestad and Atle Hauge.

May saw gains across Nordic stock exchanges, though performance diverged significantly between sectors and countries. The managers noted that geopolitical concerns, higher oil prices, and the first-quarter earnings season set the tone.

The conflict in the Middle East has so far bolstered the earnings outlook for energy and commodity companies. Conversely, higher energy prices have pressured energy-intensive firms and segments of the consumer sector, while growth expectations for Europe have been revised downward.

Interest rates and inflation expectations have risen, while the outlook for private consumption has weakened. The managers highlight that an agreement between the US and Iran could reverse some of these trends. The market remains focused on AI, defense, and energy, though valuations within AI-related companies are described as high.

Year-to-date, the euro as well as the Swedish and Danish krona have lost approximately 6-7 percent against the Norwegian krone. The fund has underperformed its benchmark both during the month and year-to-date, which is partly attributed to a higher allocation toward quality companies and small-to-mid-cap stocks.

Furthermore, all portfolio companies are reported to have released their first-quarter results. Overall, revenue increased by 1 percent compared to the same period last year, while organic growth stood at 4 percent. Operating profit rose 2 percent and earnings per share increased by 1 percent. Cash flows, however, were 1 percent lower.

Currency effects have negatively impacted underlying performance. As the Swedish and Norwegian krona strengthened against the dollar, revenue and earnings denominated in dollars and euros had a smaller impact on reported figures.

Market reactions to earnings reports have been unusually sharp. Management attributes this to heightened economic uncertainty, algorithmic trading, and thinner liquidity in certain stocks.

During the month, the fund participated in the listing of BioMar, which Schouw spun off on the Copenhagen Stock Exchange after selling a 30 percent stake. The fund was allocated shares, allowing it to maintain its ownership position.

Hexagon also completed a demerger, where Octave became a separately listed company to create two more focused businesses.

At month-end, the fund's three largest equity holdings were Protector Forsikring, DSV, and Novo Nordisk, with portfolio weights of 5.26, 5.25, and 5.20 percent, respectively.

Regarding geographical distribution, Sweden represented the largest market with 43.54 percent of the allocation. This was followed by Denmark and Norway at 21.07 and 19.75 percent, respectively.

Odin Norden, %May, 2026
Fund MTD, percentage change0.83
Index MTD, percentage change2.78
Fund YTD, percentage change-0.93
Index YTD, percentage change10.33