Mistra’s portfolio
The objectives and starting points for Mistra’s asset management, and its portfolio composition and development, are as follows:
- Assets under management: SEK 3.4 billion (30 September 2019).
- Asset depletion is permitted.
- Long-term return target: risk-free interest rate1 plus a risk premium of 2 percentage points.
- Investment in funds with a clear sustainability profile.
- Cooperation with managers who share Mistra’s basic values.
Detailed information about Mistra’s investment policy is available here.
1 Measured as interest on three-month Swedish government bonds.
Fund holdings
The normal portfolio is composed of 40% equity funds, 40% interest-bearing funds and 20% alternative investments.
Normal portfolio
| % | |
| Equity funds 40% | 40% |
| Interest-bearing funds 40% | 40% |
| Alternative investments 20% % | 20% |
At 30 September 2019 the composition was 49.0% equity funds, 31.6% interest-bearing funds and 14,0% alternative investments, while liquid funds make up 5.4%. This composition deviates from that of the normal portfolio mainly because of the favourable trend of Mistra’s equity funds, and thus the rise in the proportion of the portfolio consisting of these funds.
Whole portfolio, September 2019
September 2019
| % | |
| Equity funds 49.0% | 49,0% |
| Interest-bearing funds 31.6% | 31,6% |
| Alternative investments 14.0 % | 14,0% |
| Fund | Manager | Share of portfolio (%) | Change since 31 Dec. 2018 (SEK m) | Asset class |
| Generation IM Global Equity Fund | Generation | 27,2 | 226,5 | equity fund |
| Öhman räntefonder * | Öhman | 23,5 | 21,6 | interest-bearing fund |
| Captor Dahlia Green | Captor | 6,5 | 9,1 | interest-bearing fund |
| Lannebo Sverige Plus | Lannebo | 5,9 | 28,2 | equity fund |
| Thule Real Estate Fund | Skandia | 5,6 | 6,1 | real estate fund |
| Enter Select Pro | Enter | 5,4 | 38,1 | equity fund |
| Öhman Global Hållbar | Öhman | 4,8 | 43,0 | equity fund |
| Stewart Investors Worldwide Sustainability Fund | First State | 4,5 | 32,3 | equity fund |
| Nordkinn Fixed Income Macro Fund | Nordkinn | 3,2 | 2,9 | hedge fund |
| SEB Microfinance Fund IV | SEB | 1,8 | 5,1 | microfinance fund |
| SEB Microfinance Fund IV | SEB | 1,8 | 3,9 | microfinance fund |
| M&G Impact Financing Fund | M&G Investments | 1,4 | -0,1 | interest-bearing fund |
| Generation IM Climate Solutions Fund II | Generation | 1,4 | 10,4 | venture-capital fund |
| Generation IM Asia Fund | Generation | 1,3 | 11,5 | equity fund |
| Alder Fund I | Alder | 0,9 | 2,0 | venture-capital fund |
| Nordic Cleantech Private Equity Sub-Fund | LGT Capital Partners | 0,7 | 3,8 | venture-capital fund |
| Generation IM Climate Solutions Fund I | Generation | 0,4 | 3,7 | venture-capital fund |
| Generation IM Global Credit Fund | Generation | 0,2 | 0,8 | interest-bearing fund |
| First State Global Emerging Markets Sustainability Fund | First State | 0,0 | 7,4 | equity fund |
* Öhman FRN Hållbar, Öhman Företagsobligation Hållbar, Öhman Grön Obligation (‘Green Bond’), Öhman Kort Ränta, Öhman Obligationsfond, Öhman Räntefond Kompass Hållbar.
‘We’ve deliberately chosen to be overweight in shares, which raises risk slightly: the portfolio is more volatile than our benchmark, so in a stock-market downturn its value falls more than the benchmark’s. But since the market’s long-term trend has been clearly upward, while interest rates have fallen, being overweight in shares has benefited our portfolio in the long term. However, looking ahead, it’s reasonable to think that market risks are increasing. The business cycle is turning down and interest rates don’t look like falling any more. So we’re now cautiously reducing our exposure to shares and going in for other asset classes more.’
Commentary from Klas Eklund, Asset Management Committee, March 2019
Mistra’s funds are managed (30 September 2019) by:
| Manager | Share of portfolio (%) |
| Generation Investment Management | 30,5 |
| Öhman | 28,3 |
| Captor | 6,5 |
| Lannebo Fonder | 5,9 |
| Skandia Fonder | 5,6 |
| Enter Fonder | 5,4 |
| Nordkinn Asset Management | 3,2 |
| Skandinaviska Enskilda Banken | 1,8 |
| M&G Investments | 1,4 |
| Alder | 0,9 |
| LGT Capital Partners | 0,66 |
Return
In 2019 to date, the return on Mistra’s portfolio has been 15.1%. Equity funds have returned 27.3%, alternative investments 7.7% and interest-bearing securities 3.0%. Average return on the whole portfolio in the past five years has been 9.1%.
| Equities | Interest-bearing | Alternative investments | Total portfolio | |
| Year to date | 27.3 | 3.0 | 7.7 | 15.1 |
| Past five years | 15.8 | 1.5 | 6.7 | 9.1 |