Mistra’s portfolio

Objectives and starting points for Mistra’s asset management

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 billion (31 March 2020).
  • Asset depletion is permitted.
  • Long-term return target: Real return of 2 percent per year1.
  • 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)  This means that the real return, defined as the return less the development for Statistics Sweden’s consumer price index (CPI), should exceed 2 percent per year over time. Long-term return target until December 31, 2019: risk-free interest rate (measured as the interest rate on 3-month government debt) plus a risk premium of 2 percent.

Fund holdings

The normal portfolio is composed of 40% equity funds, 40% interest-bearing funds and 20% alternative investments.

Normal portfolio

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  %
Equity funds 40% 40%
Interest-bearing funds 40% 40%
Alternative investments 20% % 20%

At 31 March 2020 the composition was 44,9.% equity funds, 33,7% interest-bearing funds and 15,7% alternative investments, while liquid funds make up 5.7%. 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, 31 March 2020

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March 2020

  %
Equity funds 44,9% 44,9%
Interest-bearing funds 33,7% 33,7%
Alternative investments 15,7 % 15,7%

Fund Manager Share of portfolio (%) Change since 31 Dec. 2019 (SEK m) Asset class
Öhman räntefonder * Öhman 25,3 -16,7 interest-bearing fund
Generation IM Global Equity Fund Generation 21,6 -129,9 equity fund
Captor Dahlia Green Captor 6,9 -7,8 interest-bearing fund
Thule Real Estate Fund Skandia 6,5 0,0 real estate fund
Lannebo Sverige Plus Lannebo 5,2 -49,2 equity fund
Enter Select Pro Enter 5,2 -41,0 equity fund
Öhman Global Hållbar Öhman 4,8 -25,7 equity fund
Stewart Investors Worldwide Sustainability Fund First State 4,6 -12,7 equity fund
Nordkinn Fixed Income Macro Fund Nordkinn 3,6 0,7 hedge fund
SEB Microfinance Fund IV SEB 2,1 0,0 microfinance fund
Generation IM Climate Solutions Fund II Generation 1,9 3,3 venture-capital fund
M&G Impact Financing Fund M&G Investments 1,5 -3,6 interest-bearing fund
Lyxor SEB Impact Fund SEB 1,5 1,7 equity fund
Nordic Cleantech Private Equity Sub-Fund LGT Capital Partners 0,8 1,2 venture-capital fund
Alder Fund I Alder 0,7 0,0 venture-capital fund
Generation IM Climate Solutions Fund I Generation 0,2 0,6 venture-capital fund
Generation IM Global Credit Fund Generation 0,0 0,2 interest-bearing fund
         
         

* Öhman FRN Hållbar, Öhman Företagsobligation Hållbar, Öhman Grön Obligation (‘Green Bond’), Öhman Kort Ränta, Öhman Obligationsfond, Öhman Räntefond Kompass Hållbar.

‘Q1 2020: Corona pandemic spread around the world, economies closed down and stock exchanges collapsed. So did Mistra’s portfolio, which lost 9 percent.’

(Märtha Josefsson, Mistra’s Asset Management Committee, April 2020)

 

Mistra’s funds are managed (31 March 2020) by:

Manager Share of portfolio (%)
Öhman 30,1
Generation Investment Management 23,7
Captor 6,9
Skandia Fonder 6,5
Skandinaviska Enskilda Banken 5,5
Lannebo Fonder 5,2
Enter Fonder 5,2
First State / Stewart Investors 4,6
Nordkinn Asset Management 3,6
M&G Investments 1,5
LGT Capital Partners 0,8
Alder 0,7

Return

So far in 2020, the return on Mistra’s portfolio has been -8.9%. Alternative investments have returned 1.2%, interest-bearing investments -2.7% and equity funds -16.9%. The average return on the total portfolio over the past five years has been 4.8%.

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  Equities Interest-bearing Alternative investments Total portfolio
Year to date -16.9 % -2.7 % 1.2 % -8.9 %
Past five years 7.6 0.3 6.9 4.8