Initially, the managers highlight that developments in the Persian Gulf and around the Strait of Hormuz continue to influence the market's view on inflation and growth. Rising oil prices are assessed to increase the risk of higher inflation, while growth forecasts have been revised downwards.
Furthermore, the management team notes that the Stockholm Stock Exchange's broad SIXRX index rose by 3.4 percent in May. This continued the recovery following the decline in April, and towards the end of the month, the exchange reached new record highs.
According to the managers, however, the bond market is signaling concerns over rising inflation and weaker growth, while the equity market is focusing more on corporate earnings performance. The managers point out that US companies reported strong profit growth during the first quarter of the year, while Swedish companies have been negatively impacted by currency headwinds and lower exposure to the technology sector.
Additionally, US long-term interest rates have risen sharply due to increased borrowing, growing budget deficits, and diminished confidence in the dollar. Swedish rates initially rose but have since retreated. At the same time, the managers argue that the equity market currently appears more attractive than the bond market.
The earnings season has now concluded, and all holdings in the fund have reported their quarterly figures. The managers describe the performance in the engineering sector as stable and assess that currency headwinds have peaked, which could provide better conditions moving forward.
The banking sector also performed strongly during the reporting period, exceeding analyst expectations. The managers expect that banks' net interest income has bottomed out and is anticipated to improve during the second half of the year.
During the month, the fund increased its holdings in Ambea and Securitas following their respective reports. The managers highlight Ambea's exposure to the long-term growth resulting from an aging population. Regarding Securitas, they cite expectations of a strong second quarter and a valuation deemed lower than many other large-cap companies on the Stockholm Stock Exchange.
The primary contributors to the fund's return during the month were Swedbank, ABB, and Investor.
On the negative side were Alfa Laval, Synsam, and AstraZeneca.
Equities accounted for 74.8 percent of the fund's allocation at the end of the month, followed by fixed-income holdings at 22.6 percent and cash at 2.6 percent.
The three largest equity holdings were Investor, Nordea, and Swedbank, with portfolio weights of 9.7, 8.4, and 8.2 percent, respectively.
| Sensor Sverige Select, % | May, 2026 |
| Fund MM, change in percent | 2.4 |
| Index MM, change in percent | 1.8 |
Choose MarketScreener 
