Modelportfolio January 2014

Our allocation was kept unchanged in the modelportfolio in January. The modelportfolio generated a slightly negative return of 0.13% in January versus a more significant negative return of 1.71% for the benchmark, a relative performance of 1.58% as such.

With 40% allocated to equities in our model portfolio, the weak global equity markets had negative impact on our nominal return in January. However, our equity related funds included in our model portfolio generated better performance than of the MSCI World and dampened the negative impacts from equities in our portfolio.

We keep our model portfolio unchanged for the time being, but will closely follow indicators mentioned as important for the macro economy in the section above. Additionally, we will remind of that equity markets has become more expensive and estimated earnings growth from the companies in 2014 are crucial to keep up the good sentiment. The Q4 reporting season has so far delivered us the necessary comfort. With that said, estimates for 2014 still seems to be somewhat at risk and we do not see much room for significant downward revisions without hurting equity market sentiment and potentially a (steep) market reaction as an outcome.  As such, we are more likely to cut in our equity weightings going forward than of the opposite. 

 

InvestmentsPortfolio
Equities  
Alken European Opportunities 10,0%
Fidelity Asian Special Situations 10,0%
SEB Nordic Focus 10,0%
S&P Spyder 5,0%
East Capital Russland 5,0%
Sum Equities 40,0%
   
Fixed Income  
Norwegian High Yield Bonds 25,0%
Ashmore Emerging Market Debt 10,0%
Bluebay High Yield Fund 10,0%
Muzinich Short Duration High Yield 10,0%
Bluebay Investment Grade Fund 5,0%
Sum Fixed Income 60,0%

 

Performance200820092010201120122013YTD
SEB Modelportfolio -6,73%  26,55% 6,45% 0,17% 12,00% 13,01% -0,13%
Benchmark -12,77% 11,92% 6,01% -1,06%  8,23% 15,27% -1,71%
Outperformance 6,04% 14,63% 0,44% 1,23% 3,77% -2,26% 1,58%
MSCI World -30,06% 26,51% 10,57% -4,96% 16,42% 29,57% -3,22%