2013 was a good year for the SI portfolio, both in terms of performance and in terms of what we believe are attractive new investments.
New investments totalled NOK 388 million.
2013 was a good year for the SI portfolio, both in terms of performance and in terms of what we believe are attractive new investments. The return for the year was NOK 580 million, representing the highest nominal return achieved by SI since the mandate was established.
Receipts from disposals, interest and dividends exceeded new investments by NOK 210 million. In total, new investments amounted to NOK 380 million, while NOK 599 million was released through disposals, interest and dividends.
The main contributors to the return were the receipt of distributions of client assets from the Lehman bankruptcy, upward re-valuations of fixed income investments, and sales of fund investments in Japan that were purchased in the secondary market.
2013 was the fifth anniversary for the SI mandate. The annualised return since inception has been 30%. In total, NOK 3.7 billion has been invested since 2009 and NOK 2.85 billion has been realised through receipts of dividends and interest, sales of investments and distributions received from funds purchased in the secondary market.
The portfolio does not have any borrowings and has maintained an overweight position in fixed income investments as the underlying asset class.
The portfolio was valued at NOK 2.1 billion at year end.
SI continues to see many opportunities in the areas of restructuring and illiquid hedge funds, which were the focus in 2013.
The Ferd Special Investments team has the equivalent of 2.5 full-time employees. There were no personnel changes in 2013.
SI continues to see many opportunities in the areas of restructuring and illiquid hedge funds, which were the focus in 2013. We have not been active in the Norwegian bond market for several years, and do not expect to make any investments in this market in 2014 unless there is a significant re-pricing.