Kraft Norge returned -1.75% in April and is up 13.72% so far this year.

Oil prices rose from USD 103 to USD 110 per barrel, while European gas prices fell back slightly during the month. The fund’s holdings in the energy sector corrected slightly downwards. Equinor fell the most, while Aker BP and Frontline fared somewhat better. We recorded high volatility in this segment again this month, driven by ongoing developments in the Middle East.

Developments in the industry, materials and supplies categories were more mixed. Bonheur contributed positively, while Borregaard and Tomra stood out negatively. Both companies delivered weaker-than-expected Q1 figures and were severely punished on the stock exchange in the wake of this. In the latter, we took the opportunity to buy further up, as we think the pricing has now become very attractive.

Within technology and communication services, Vend Marketplaces contributed positively to the return, while Telenor fell sharply after somewhat weak figures for the first quarter.

All companies in the consumer goods segment had generally weak stock market performance. With the exception of Bakkafrost, all seafood companies in the portfolio corrected downwards. Orkla was also a negative contributor this month.

Financial companies made relatively little noise in April, and we haven’t seen any significant changes in this segment in recent weeks.

The reporting season for the companies’ first quarter is well underway, and overall we have so far registered somewhat better figures than expected. The Oslo Stock Exchange has many companies that are benefiting from higher commodity prices, and this has led to future earnings estimates being raised in recent weeks. However, we have also seen large price fluctuations in a negative direction when companies have reported weaker than expected figures.

Kraft Norge’s portfolio is well diversified across sectors, characterized by mature companies with strong market positions in their segment. The selection process also emphasizes that the companies have a solid balance sheet and positive cash flows over time.

Sincerely

Stein Frode Aaseng