The Nordic region

Why we invest in the Nordics

The Nordic region

The Nordics offer a strong framework of effective institutions and legal systems with good corporate governance contributing to superior long term equity returns. The Nordic market is big enough for diversification, providing many investment alternatives, yet it is small enough for us to get an overview, making it ideally suited for our bottom-up style of stock picking.

The small, open and flexible Nordic economies have provided a fertile breeding ground for highly competitive companies characterized by strong innovation capabilities apt on adapting new technology.

A highly educated workforce provides the backbone of many leading industry clusters where also highly diverse natural endowments in each of the Nordic countries play a vital role. Furthermore, sophisticated consumers characterized by a relatively broad income distribution are creating a demanding home market for Nordic enterprises.

On a comparable basis Nordic companies have high scores on transparency and ESG metrics and superior profitability. There is emphasis on transparency, accountability and protection of minority shareholders. Similarly, most Nordic companies have come a long way with regards to environmental issues while putting a strong emphasis on social factors.

We believe the Nordics offer ample opportunities for the future, and when we look at long-term historical returns, the region has outperformed most stock markets.

 

Arctic Nordic Equities is research driven and truly index‐independent UCITS fund. The investment process focus on identifying companies which are considered to be value‐creating over time at a reasonable price. The portfolio is constructed by bottom up stock picking. There are no constraints regarding country or industry in the Nordic region, and the goal is to create the best portfolio possible at any time. The funds benchmark is VINX Index calculated in Norwegian kroner.

Past performance in the fund is no guarantee for future returns. Future returns depend on the market, fund manager skill, fund risk level, costs, among others. Performance in the fund may at times be negative and may vary within periods.