ADVERTORIAL FEATURE
Sweden : A smörgåsbord of innovation
The value of an investment , and any income from it , can fall as well as rise and investors may not get back the amount invested .
There ’ s a Swedish saying : “ If you look at Sweden from space , you can see two things , social democracy and the Wallenbergs .” Such is the significance of one of Europe ’ s most powerful business dynasties . The Wallenbergs are the controlling shareholders of Atlas Copco , a global leader in compressors , pumps and power tools , whose roots date back to 1873 . One of Baillie Gifford ’ s longestheld stocks , it ’ s typical of a Swedish speciality : companies that can generate extreme returns over long periods .
Such companies , both old and young , exemplify the kinds of Swedish stocks rated by Stephen Paice , joint manager of the Baillie Gifford European Growth Trust and the European Fund . Paice doesn ’ t specifically target Swedish companies . They make it into his portfolios , he says , as a natural result of his search for companies that can become ‘ outliers ’. “ These are the companies that could go on to produce huge upside for our clients by generating extreme returns over long periods .” Paice ’ s goal then is “ to try and find those outliers and hold them forever ”. Why then does the country produce more than its fair share ? Paice points to a Swedish cultural strength : the country ranks at the top or near the top of global innovation and competitiveness indices . The zip , monkey wrench , the three-point seatbelt , the pacemaker : the Swedes can claim to have commercialised them all . Tetra Pak , whose cartons are widely used in food and drink packaging , exemplifies Swedish companies ’ ability to turn inspiration and practical problemsolving into massively lucrative businesses .
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