Posted inNORDICSEquitiesEurope

Untangling the Nordic knits

People find comfort in lumping things together with the belief that there is some underlying homogeny or similarity of purpose.

But when you break groups down to their individual components, it truly comes to light how different they are.

In Last Word’s latest research, for example, there was a marked difference in how Nordic fund selectors expect 26 asset classes to perform over the next 12 months.

Most favourable

Infrastructure took pole position in Sweden by quite a margin. It was trailed by the equally rated asset classes of property, global equity funds and absolute return strategies.

Across all 26 asset classes, Swedish fund selectors took a dim view of 11 of them.

Net sentiment: Positive Negative Neutral/Do not use
Sweden 10 11 5

In Denmark, however, it was absolute return strategies that topped the table; with private equity, private debt and index-tracking coming in joint second.

Danish fund selectors had a more positive outlook than their counterparts across the bridge, casting a wary eye over just eight asset classes.

Net sentiment: Positive Negative Neutral/Do not use
Denmark 13 8 5

There was less of a firm favourite for fund selectors in Norway, with cash/money market funds polling in first place. Absolute return strategies came second, followed by global equity funds.

Of the 26 asset classes under review, Norwegians have an agnostic view of seven of them.

Net sentiment: Positive Negative Neutral/Do not use
Norway 13 6 7

The Finnish fund selectors expressed the strongest net sentiment towards a single asset class last quarter – private debt, which was followed swiftly by infrastructure.

With just two asset classes attracting scant interest, Finns appear to be as negative as the Swedes but equally as positive as their Danish and Norwegian peers.

Net sentiment: Positive Negative Neutral/Do not use
Finland 13 11 2

Kicked to the kerb

The one thing that three of the Nordic countries agree on is European equities is the most out-of-favour asset class.

Something that will come as little surprise to those paying attention.

The hold-out, however, was Finland which put developed market govvies along with corporate and high yield bonds in the dog house ahead of European equities.

All this data, and much more, is available.

If you wish to see the full results of our research or discuss this further, please contact

Kirsten Hastings

Kirsten is international editor of Expert Investor and International Adviser. She joined Last Word Media in October 2015. Kirsten has a Masters in Financial Journalism from the...

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