The modelportfolio was down 0.95% in September. The main negative contributions were BlueBay High Yield NOK and BlueBay Emerging Markets Bond NOK, falling 2.53% and 2.42% respectively. The Benchmark rose 0.44%. Most of the modelportfolio's holdings are hedged back to NOK while the MSCI World which is 50 % of the benchmark is not. The USD appreciation of 4 % explains most of the underperformance.
Changes in the Modelportfolio
Over the last 5-6 years the interest rate spreads have come in to a level last seen prior to the financial crises. Investors are getting increasingly anxious to rate increase and spread widening. During the turbulence this summer we saw clear evidence of this as the spreads in the US widened about 150 basis points due to sell off from retail investors. We are of the opinion that on a risk/reward basis we get better pay off by reducing the weight in high yields and increase the weight in equities.
For the modelportfolio we are reducing BlueBay High Yield NOK from 10% to 5%, and are terminating Muzinich Short Duration Bond Fond NOK which until now has had a weight of 5% in the portfolio. We are investing the proceeds in a European registered ETF that is tracking S&P 500 delivered by iShares/Blackrock.
Our Modelportfolio after implemented changes:
| 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* |
25,0% |
| BlueBay Emerging Market Bond Fund |
10,0% |
| BlueBay High Yield Fund |
5,0% |
| Carnegie Corporate Bond Fund |
5,0% |
| 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 |
30.09.14 |
| SEB NAP |
-6,73% |
26,55% |
6,45% |
0,17% |
12,00% |
13,01% |
2,58% |
| Benchmark** |
-12,77% |
11,92% |
6,01% |
-1,06% |
8,23% |
15,27% |
4,69% |
| Outperformance |
6,04% |
14,63% |
0,44% |
1,23% |
3,77% |
-2,26% |
-2,11% |
| MSCI World*** |
-30,06% |
26,51% |
10,57% |
-4,96% |
16,42% |
29,57% |
8,42% |
**Benchmark: 50/50 MSCI World og STX1
*** MSCI World in NOK