Forte Norge returned 2.69% in January and is up 9.62% over the past 12 months.

Oil prices rose from around USD 61 to USD 70 per barrel, mainly driven by increased geopolitical tensions between the US and Iran. European gas prices also rose during the month. As a result, companies in the energy sector had a strong month on the stock exchange. Frontline was the best performing stock in the segment, but Aker BP and Equinor were also very positive contributors to the return. Relative to the benchmark index, we lost some on the fund’s underweight position in oil service companies.

Within the industry, materials and utilities categories, performance was more mixed. Kongsberg Gruppen was the best performing stock in the fund in January. The company has recently announced several major contracts, while increased geopolitical unrest has contributed to a generally strong momentum for companies in the defense segment. Aker, Norsk Hydro and Yara also stood out in a positive direction. On the weak side, Tomra and Stolt-Nielsen corrected slightly downwards.

Consumer goods companies were the weakest sector this month, especially the seafood companies in the portfolio. Developments in salmon prices have been somewhat weaker than expected so far this year, and have consequently affected share prices. However, we see this as a buying opportunity and have recently increased our weighting in Bakkafrost, Mowi and Salmar.

Of the fund’s holdings in technology and communication services, Telenor stood out with a strong price performance after the market welcomed the company’s agreement to sell its stake in True Corporation in Thailand. We still like Telenor, as we think the valuation is attractive compared to comparable companies in the Nordic region. Here you get stable earnings, a dividend yield of just under 7 percent, and several possible strategic triggers on top.

Companies in the financial sector corrected somewhat downwards at the start of the new year, without us registering any particular drivers for this. The sector has been a winner for a long time and is priced relatively high in a historical perspective in relation to book values. Although we do not believe there is much more to be gained from increased valuation, the outlook for stable dividends looks positive for the next two years.

The reporting season for companies’ fourth quarters has only just begun, and will affect individual shares from day to day in the time ahead. It will also be exciting to receive signals regarding future guidance. We believe that the fund’s portfolio has a robust composition, 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. The portfolio is also well-diversified across sectors, with the largest exposure to defensive consumer goods, followed by energy and financials.

Sincerely

Stein Frode Aaseng