FORTE Norway rose by 5.0 per cent in December and developed is fully in line with the benchmark index OSEFX. The fund ended up 14.8 per cent for the year. Since we changed investment strategy in August, the fund has provided a excess return of 3.2 per cent compared to the benchmark index.
The companies within consumer goods was an important contributor to the fund's positive return this month, especially the seafood companies in the portfolio. Higher salmon prices combined with a favourable outlook for 2026 were key drivers for the rise. Back frost and Austevoll grew the most, but Lerøy Seafood and Mowi had a strong end to the year.
The oil price (Brent) also fell slightly in December, ending the year at around USD 61 per barrel. The gas price was unchanged. The companies within energy sector did so evenly across weaker than the index. Frontline corrected somewhat downwards as a result of a larger rate drop in the large tank segment.
Within the categories industry, materials and supplies there was strong development. Happiness and Yara were the best performing stocks in the fund. Kongsberg Gruppen also rose sharply against year-end. We have recently acquired a significant stake in the latter, as we believe pricing has become more attractive in combination with the fact that we believe that earnings expectations are a little too conservative. Aker was the only stock in these sectors to correct slightly downwards.
Of the fund's holdings within technology and communication services it was small price fluctuations, and no news worth mentioning. The companies within finance ended the year strongly without any particular drivers being recognised for this. Sparebank 1 Sør-Norge and Storebrand both rose around 10 per cent, but Sparebank 1 Mid-Norway and Sparebank 1 North Norway also made a very positive contribution. The banking sector has delivered fantastic returns over the past 10 years, as a result of steady earnings growth, dividends and increased valuation. Although we believe that banks' return on equity has peaked, and that consequently there is not much more from increased valuation, the dividend yield looks set to remain stable over the next couple of years. years. This means that the sector will still be interesting to own in 2026.
At the start of a new year, the portfolio consists of mature companies with strong market positions in their segment. The selection process also emphasises that the companies have a solid balance sheet and positive cash flows over time. The portfolio is currently well-diversified across sectors, with the largest exposure being within the categories finance, energy and defensive consumption.
We look forward to a new year on the stock exchange, where the hunt for excess returns continues!
Sincerely yours,
Stein Frode Aaseng
