The Lannebo Norden A fund declined by 4.2 percent in March, underperforming its benchmark index which fell by 2.6 percent. Since the beginning of the year, the fund has decreased by 7.5 percent, trailing the index which has gained 2.0 percent. This is according to a monthly report from fund managers Peter Lagerlöf and Adam Hansson.

The managers initially noted that equity markets saw broad declines in March following military actions by the US and Israel against Iran. Consequently, oil and natural gas prices surged, raising the risk of renewed inflation and reduced household purchasing power, despite previous forecasts pointing toward strengthened private consumption.

"Expectations for central banks have shifted from pricing in rate cuts to anticipating further rate hikes instead. The risk of a sustained higher inflation rate, to which central banks must react, naturally depends on how long oil prices remain at elevated levels. For now, however, it seems unlikely that central banks will need to respond with rate hikes," the managers wrote.

They added that central banks are simultaneously excluding energy and focusing on core inflation to avoid double-tightening during an oil price supply shock.

Within the Nordic region, Norway showed the strongest performance, as many companies are positively impacted by high oil prices. Sweden, which has a high concentration of cyclical companies, was at the bottom. Meanwhile, the trend in Sweden shifted as small-cap stocks outperformed large-caps.

During the month, Volvo, AAK, and Storebrand were added as new holdings. Volvo saw a significant pullback at the start of the conflict – an event viewed as a favorable buying opportunity given the company's robust order intake.

"The Norwegian insurance company Storebrand also entered the fund. The company has gradually strengthened its market share in the life insurance market in both Norway and Sweden, which is not reflected in the valuation. We see potential to grow total returns by at least ten percent per year for a long time to come."

Furthermore, positions in Novo Nordisk, Hexagon, and Axfood were completely divested.

The fund's largest equity holdings at month-end were Alfa Laval, Sagax, and Bravida, with portfolio weights of 5.3, 4.0, and 3.9 percent, respectively. The fund had its largest geographical exposure to Sweden with a weight of 63.0 percent, followed by Norway and Denmark with exposures of 13.5 and 10.2 percent, respectively.

Industrials, consumer discretionary, and healthcare were the largest sectors, with weights of 30.1, 20.0, and 12.9 percent, respectively.

Lannebo Norden A, %March, 2026
Fund M/M, percentage change-4.2
Index M/M, percentage change-2.6
Fund YTD, percentage change-7.5
Index YTD, percentage change2.0