The Odin Norden fund climbed 1.96 percent in December, underperforming its benchmark index, which rose 2.88 percent. Over the past year, the fund has returned 2.15 percent, lagging behind the index's 7.36 percent increase. This is according to a monthly report from the fund's managers, Vigdis Almestad and Atle Hauge.

The managers initially explain the fund's weaker performance compared to its benchmark in 2025, mainly due to the fund's focus on quality companies and a higher proportion of small and mid-cap stocks versus the index. This year, large-cap stocks benefited, while both small caps and quality stocks as a group saw significantly weaker development.

Despite a cautious market outlook at the start of the year, 2025 turned out to be a positive year for equity markets. Monetary and fiscal policy stimulus measures helped support growth, while inflation continued to ease, albeit more slowly than expected.

Furthermore, the report notes that AI-related investments drove capital spending in the United States, while Europe benefited from increased defense expenditures. The dollar weakened by around 8 percent during the year, and European stock markets outperformed the American market.

In the Nordic region, performance was mixed. The Helsinki Stock Exchange surged 31 percent, while Copenhagen dropped 21 percent. Stockholm rose 23 percent, and Oslo gained 18 percent. The financial and industrial sectors performed the strongest, while healthcare and consumer discretionary sectors faced headwinds.

Portfolio companies reported 3 percent revenue growth and a corresponding increase in operating profit over the first three quarters, while earnings per share declined by 2 percent. Cash flow per share remained unchanged. The managers state that overall, performance has been satisfactory given the market environment.

The largest positive contributors to the fund's return during the year were Protector Forsikring, NCC, and Ringkøbing Landobank. On the negative side, Novo Nordisk, Thule, and Instalco weighed most on performance. Several portfolio changes were made during the year, including new holdings in Astra Zeneca, AAK, and DNB.

In conclusion, the managers write that they are maintaining their quality-based investment philosophy and believe the portfolio is well positioned for long-term returns, despite increased geopolitical uncertainty and continued market volatility.

The largest holdings in the fund's portfolio at the end of the month were Protector Forsikring at 6.08 percent, followed by DSV and Novo Nordisk with weights of 5.02 and 4.82 percent, respectively.

Odin Norden, %December, 2025
Fund MoM, change in percent1.96
Index MoM, change in percent2.88
Fund full year, change in percent2.15
Index full year, change in percent7.36