After a four percent rebound in December, the Pareto portfolio finished with a 33 percent increase in 2021. It appears from the company’s press release on Monday. This is the thirteenth year in a row that the Model Portfolio has beaten the Oslo Stock Exchange.
In the past 20 years, the portfolio has seen a stronger development than the Oslo Stock Exchange in 18 years.
The report stated that the rise in December was supported in particular by the rise in oil prices and the generally positive development in the stock market. In December, the Oslo Stock Exchange rose 1.7 percent.
These are the shifts Pareto analysts made in January:
- At: Mowi, Panoro Energy, Stolt-Nielsen, Sparebanken Vest, Telenor
- Abroad: Austevoll Seafood, Belships, Bonheur, Frontline, Sparebank 1 SMN
- Kept: Aker, Cloudberry, Komplett, Norske Skog, Subsea 7
Take the Telenor
In 2021, Telenor provided 1 percent of the total return, but Pareto still chose to include the telecom stake in the model portfolio in January. Analyst Christopher Hajvik believes that this is due to the negative exposure experienced by company after company Sell Myanmar’s business In July, in addition to the negative impact on the currency of the krone strength.
With that already reflected in the stock price, Telenor is now trading at a record-high dividend yield of about 7 percent, indicating that the stock will generate about 30 percent of total return in 2022 if history is to repeat itself, he says Hajvik in a press release.
We believe in oil companies and Al-Akir
With the price of oil rising above 40 percent through 2021 and now above $70 a barrel, Pareto Energy includes Panoro Energy in the portfolio.
Pareto also holds Aker’s ashes, which rose more than 50 percent in 2021. In December, it became clear that Aker BP would acquire Lundin Energy’s Norwegian oil and gas business, and they announced that former oil fund manager Yngve Slyngstad would join the company as president. The new management investment in Aker.
We believe that Aker BP will develop favorably when the market takes over the effects of the deal with Lundin Energy, which will create a new giant on the Norwegian shelf. In addition, we believe Aker Horizons is well positioned for further growth and we expect many exciting news from the company in the future, energy analyst Tom Erik Kristiansen says in the press release.
The same also applies to the newly launched management business and Aker’s exciting portfolio of technology companies, says Christiansen.
Change the effect of salmon
Since May, Pareto has had Ostfull Seafood in its portfolio. In May, he will be replaced by Mowi. Mowi’s share was weak in December and overall in 2021. Naval analyst Carl-Emil Johannessen believes that will change.
“We believe the company will provide a good fourth-quarter update in January, and with salmon prices continuing to rise, we believe in a good development for the share in the first month of the year,” Johansen says.
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