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