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 3.25 billion (30 June 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

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

At 30 June 2019 the composition was 50.3% equity funds, 32.1% interest-bearing funds and 13,9% alternative investments, while liquid funds make up 3.7%. 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, June 2019

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June 2019

%
Equity funds 50.3% 50,3%
Interest-bearing funds 32.1% 32,1%
Alternative investments 13.9 % 13,9%

Fund Manager Share of portfolio (%) Change since 31 Dec. 2018 (SEK m) Asset class
Generation IM Global Equity Fund Generation 26,1 167,1 equity fund
Öhman räntefonder * Öhman 23,8 16,6 interest-bearing fund
Captor Dahlia Green Captor 6,6 6,9 interest-bearing fund
Lannebo Sverige Plus Lannebo 5,8 20,6 equity fund
Thule Real Estate Fund Skandia 5,5 1,3 real estate fund
Enter Select Pro Enter 5,5 37,3 equity fund
Öhman Global Hållbar Öhman 4,6 34,4 equity fund
Stewart Investors Worldwide Sustainability Fund First State 4,4 26,6 equity fund
Nordkinn Fixed Income Macro Fund Nordkinn 3,2 2,9 hedge fund
Generation IM Asia Fund Generation 2,2 8,8 equity fund
SEB Microfinance Fund IV SEB 1,8 3,9 microfinance fund
First State Global Emerging Markets Sustainability Fund First State 1,7 6,5 equity fund
M&G Impact Financing Fund M&G Investments 1,5 0,7 interest-bearing fund
Generation IM Climate Solutions Fund II Generation 1,4 7,5 venture-capital fund
Alder Fund I Alder 0,9 0,6 venture-capital fund
Nordic Cleantech Private Equity Sub-Fund LGT Capital Partners 0,7 2,4 venture-capital fund
Generation IM Climate Solutions Fund I Generation 0,4 2,4 venture-capital fund
Generation IM Global Credit Fund Generation 0,2 0,5 interest-bearing 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 June 2019) by:

Manager Share of portfolio (%)
Generation Investment Management 30,3
Öhman 28,4
Captor 6,6
First State / Stewart Investors 6,1
Lannebo Fonder 5,8
Skandia Fonder 5,5
Enter Fonder 5,5
Nordkinn Asset Management 3,2
Skandinaviska Enskilda Banken 1,8
M&G Investments 1,5
Alder 0,9
LGT Capital Partners 0,66

Return

In 2019 to date, the return on Mistra’s portfolio has been 11.5%. Equity funds have returned 20.8%, alternative investments 4.8% and interest-bearing securities 2.4%. Average return on the whole portfolio in the past five years has been 8.8%.

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Equities Interest-bearing Alternative investments Total portfolio
Year to date 20.8 2.4 4.8 11.5
Past five years 15.4 1.6 6.1 8.8