Modelportfolio October 2014

October was a very volatile month where expectations swung from very negative focus on both global macro and corporate earnings to relief rally when actual numbers turned out better than expected. It was a month where investors prefered safety and liquidity became crucial.

The Modelportfolio managed to gain 0.76% in October. The main contributions came from Fidelity Asian Special Situations and iShares Core S&P 500 ETF (entered the portfolio at the end of September) which rose 6.10% and 6.75% respectively. The worst performer was once again TreeTop Global Opportunites NOK, falling 3.75% in October. The main reason for the big difference in performance came from the 5.10% appreciation of the USD against the NOK as both the iShares and Fidelity Asian Special Situations are in USD while TreeTop Global Opportunities are hedged to NOK.

The benchmark, where the equity part is unhedged, gained 2.86% for the month. Thus far the Modelportfolio is up 3.15% while the benchmark is up 8.44%.

On the 15th of October we did a rebalancing of the Modelportfolio, where we chose to increase our holding in Carnegie Corporate Bond Fund back to 10% in order to keep our allocation strategy of a portfolio balance of 50% equities and 50% fixed income.

Modelportfolio after rebalancing:

Investments Portfolio
Equities  
J O Hambro ' European Select Values Fund 10,0%
Fidelity Asian Special Situations 10,0%
SEB Nordic Focus 10,0%
TreeTop Global Opportunities 10,0%
Ishares Core S&P 500 UCITS 10,0%
Sum Equities 50,0%
   
Fixed Income  
Norwegian High Yield Bonds* 20,0%
BlueBay Emerging Market Bond Fund 10,0%
BlueBay High Yield Fund 5,0%
Carnegie Corporate Bond Fund 10,0%
SEB Liquidity Fund 5,0%
Sum Fixed Income 50,0%

 *Norwegian High Yield Bonds: Siem Offshore 2018, Color Group 2015 and Aker 2015

Return 2008 2009 2010 2011 2012 2013 31.10.14
SEB NAP -6,73% 26,55% 6,45% 0,17% 12,00% 13,01% 3,15%
Benchmark** -12,77% 11,92% 6,01% -1,06% 8,23% 15,27% 8,44%
Outperformance 6,04% 14,63% 0,44% 1,23% 3,77% -2,26% -5,29%
MSCI World*** -30,06% 26,51% 10,57% -4,96% 16,42% 29,57% 5,59%

**Benchmark: 50/50 MSCI World og STX1
*** MSCI World in NOK