SKANDIA GLOBAL FUNDS PLC - Fidelity Investments

Skandia Global Funds plc
Annual Report and Audited Financial Statements for the year ended 31 December 2011
SKANDIA SEK RESERVE FUND
INVESTMENT ADVISER’S REPORT FOR THE YEAR ENDED 31 December 2011
Skandia SEK Reserve Fund – DnB NOR Asset Management AB
Below is a report from the Investment Adviser of the Skandia SEK Reserve Fund for 2011.
The Skandia SEK Reserve Fund was launched on 13 September 2000 with a starting Net Asset Value per share of SEK 10.00.
Investment Adviser’s Commentary
The Skandia SEK Reserve Fund underperformed its benchmark, the Svenska Handelsbank Short Treasury Bill Index, in 2011.
The fund returned 1.06%, compared to a return of 1.55% for the benchmark index.*
During the first quarter of 2011, the fund‟s duration is now 0.07 years longer than the index and this is approximately the same as
at the end of the fourth quarter 2010. The index consists of the two first maturing T-bills i.e. at the moment 44% April and 56%
May T-bills. The fund must invest in at least six different issues and is not able to invest more than 30% of the market share in
each.
In the second quarter of 2011, the fund‟s duration is now 0.12 years longer than the index and this is a bit longer than at the end
of the previous quarter. The index consists of the two first maturing T-bills i.e. at the moment 45% July and 55 % August T-bills.
The fund must invest in at least six different issues and is not able to invest more than 30% of the market share in each.
In the third quarter the Skandia SEK Reserve Fund recorded a total net return of 0.32% over the third quarter of 2011, while its
primary benchmark, the Svenska Handelsbank Short Treasury Bill Index, had a total return of 0.43% for the period.*
The Skandia SEK Reserve Fund is now 0.10 years longer than the index and is a bit longer than at the end of last quarter. The
index consists of the two first maturing T-bills, i.e., at the moment 40% October and 60% November T-bills. The fund must
invest in at least six different issues and is not able to invest more than 30% of the market share in each.
During the last quarter the fund returned 0.36% which was 3bps better than the benchmark index during the fourth quarter. The
performance can be attributed to longer duration and a carry contribution from high yielding short mortgage bonds. The fund is
now 0.10 years longer than the index and this is approximately the same as at the end of last quarter. The index consists of the
two first maturing T-bills, i.e, at the moment 43% January and 57% February T-bills. The Fund must invest in at least six
different issues and is not able to invest more than 30% of the market share in each. Going short the index is not possible if the
Investment Adviser is not able to use derivatives.
Source: DnB NOR Asset Management AB and Skandia Investment Group, as at 31 December 2011.
* Performance figures refer to Class A1 shares and are sourced from Morningstar. Calculation basis: bid to bid, net of fees, gross
income reinvested in fund base currency (Swedish Krona).
References to benchmarks are for illustrative purposes only and are not intended to imply a performance objective. There is no
guarantee that the Skandia SEK Reserve Fund will outperform this benchmark.
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