Equity investor and multi-billionaire Arne Fredly is perhaps best known for his significant collection of expensive luxury cars and for his address in the decadent and tax-friendly Monaco, but he also spends time following developments in a bunch of small banks in Norway.
Through his Norwegian investment company AF Capital Management, he is a shareholder in Pareto Bank, Helgeland Sparebank, Jæren Sparebank and Saga Tankers. The value of the shares was NOK 284 million, according to the 2019 accounts.
It is especially the investment in Pareto Bank that contributed to his Norwegian company last year having a profit before tax of approximately NOK 32 million.
Dividend bank
The year before, AF Capital Management had a deficit of close to NOK 29 million, after a particularly weak year for Pareto Bank. The bank has been like a fly in the ointment to some of Norway’s most well-known investors, and 2019 was a year in which the bank delivered. The value of Fredly’s portfolio in Pareto increased by almost NOK 26 million during the year.
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Fredly is one of the largest shareholders in Pareto Bank, and has also established itself as an investor who makes demands on the bank. Together with investor Øystein Stray Spetalen, he has been a vocal advocate for the bank to become a so-called dividend bank.
“Pareto Bank should become a dividend company. I want a 50 percent dividend from the profit in 2019. From 2020 onwards, I want the bank to pay 80 percent of the profit in dividends “, he stated to Finansavisen this winter and shortly afterwards the bank followed his advice.
50 percent of the 2019 profit goes to shareholders, the bank’s CEO, Tiril Haug Villum, could tell the market.
Then, however, the corona pandemic struck and in April, the plans to pay out half the profit were postponed after «A strong request» from the Danish Financial Supervisory Authority.
In March, the price of Pareto Bank fell dramatically within a few weeks, but has recovered. The course at the beginning of the weekend was the same as at New Year.
Only Norway
The value of the smaller items in Fredly’s fairly moderate portfolio in banking and tanks also increased in 2019, but amounts to relatively small amounts in the larger context for Arne Fredly.
AF Capital Management’s accounts are exclusively about what is his Norwegian – registered equity investments, or what he has bought on the Oslo Stock Exchange through his Norwegian company. His other investments, ie investments through companies registered outside Norway and located in other markets, do not appear in the accounts of AF Capital Management.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other form of use of all or part of the content, can only take place with written permission or as permitted by law. For additional terms look here.
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