Modelportfolio October 2016

The Modelportfolio (NAP) rose 0.70 percent in October. The best performers were Hermes Global Emerging Markets and SEB Norway Focus rising 4 percent and 3.90 percent respectively. The laggard was SEB Asset Selection by falling 2.80 percent last month. It was followed by Legg Mason Martin Currie European Absolute Alpha which was down 1.40 percent. Year to date the NAP is up 3.10 percent.

We are doing two changes in the Modelportfolio. We are selling JO Hambro European Select Fund and investing the proceeds in KLP AksjeEurope Indeks (NOK). The rationale behind is the long term prospects of a stronger Norwegian krone. JO Hambro European Select is unhedged while KLP is currency hedged back into Norwegian kroner.

The second change is to sell Legg Mason Martin Currie European Absolute Alpha, and replace it with JP Morgan Global Strategy Bond Fund (NOK). European long/short equity strategies have struggled so far in 2016, and we do not see this changing in the short term. JP Morgan Global Strategy Bond Fund is utilizing JP Morgan’s broad and deep knowledge in the global bond market. It can invest in a wide range of fixed income securities as government bonds, investment grade bonds, high yield, asset backed securities, emerging market bonds etc. It will always have investment grade rating on average. Currently the average rating is BBB+. The fund is to be considered as low risk fixed income fund, and it is hedged back into Norwegian Kroner.

 

  Modelportfolio:

Investments Portfolio
Equities  
KLP AksjeEuropa Index NOK 10%
Arctic Nordic Equities 10%
SEB Norway Focus Fund 15%
Hermes Global Emerging Markets  5%
Sum Equities 40%
   
Fixed Income  
Carnegie Corporate Bond Fund 10%
SEB High Yield NOK 10%
SEB NOK Liquidity 10%
Sum Fixed Income 30%
   
Alternative  
SEB Asset Selection 10%
Legg Mason Martin Currie European Absolute Alpha 10%
Nordkinn Fixed Income 10%
Sum Alternative 30%

 

Return 2008 2009 2010 2011 2012 2013 2014 2015 31.10.2016
SEB NAP -6,73% 26,55% 6,45% 0,17% 12,00% 13,01% 9,65%   6,55%  3,00%
MSCI World* -25,56% 12,67% 14,12% -4,55% 8,67% 34,67% 29,39% 16,09%  -1,67%


*MSCI World in NOK