Simplified Model Portfolio

 

The Simplified Model Portfolio is an easy way how to start an optimum investment portfolio with a possibility to make regular investments in it. The minimum investment in the Simplified Model Portfolio is from 50 to 100 Euros.

Simplified Model Portfolios consist of three Nordea Multi-Manager Funds that are combined in the portfolios depending on desired risk level. They are made of open-end European-registered investment funds with high diversification across regions, sectors, currencies, asset classes, fund managers, and low correlation among the assets, which is critical to achieve a stable long-term outperformance.

  • Multi Manager Fund Conservative– the fund follows a conservative management strategy whose main goal is to maximize profitability at a relatively low level of risk. The strategy is suitable for those investors who aim for long-term returns on their investment to exceed inflation, but do not want to worry about financial market fluctuations. The proportion of shares in a portfolio can be from 5% to 45% of the assets of the fund.
  • Multi Manager Fund Balanced – the fund follows a balanced management strategy whose main goal is to maximize profitability at a relatively moderate level of risk. The strategy is suitable for those investors who consider the investment fund the best way to participate in financial market events and are prepared to take a moderate risk of loss in the short term. The proportion of shares in a portfolio can be from 30% to 70% of the assets of the fund.
  • Multi Manager Fund Aggressive – the fund follows an aggressive management strategy whose main goal is to maximize profitability at a relatively high level of risk. The strategy is suitable for those investors who are able to withstand high fluctuations in portfolio value, including negative portfolio returns not only in the short term, but also over longer period of time. The proportion of shares in a portfolio can be from 55% to 95% of the assets of the fund.

Luminor offers three types of the Simplified Model Portfolio depending on the risk profile of the investor and expected return.

Presentation on Luminor Model Portfolios 

Simplified Model Portfolio

 

conservative

 

Conservative Portfolio

You prefer to minimize the fluctuations of your investment value and therefore accept modest wealth accumulation. You are also aware that even a modest wealth accumulation does not eliminate the possibility that for a short period of time the value of your investment can decline somewhat or increase more than on average in long term.

 

 

moderate

 

Moderate Portfolio

You have a low risk tolerance but you also desire a moderate wealth accumulation. Therefore you accept some decline in your investment value for shorter periods of time in order to increase expected returns on your investment over time.

 

 

 balanced

 

Balanced Portfolio

You strive for a somewhat higher expected return on your investment. Therefore you accept fluctuations in your investment value in shorter periods of time in order to enable clear accumulation of your wealth over time.

 

 

progressive

 

Progressive Portfolio

You strive for high expected return and can tolerate large fluctuations in the portfolio value both short and long term in order to enable clear accumulation of your wealth over time.

 

 

aggressive

 

Aggressive Portfolio

Your main objective is high expected return and you can tolerate large fluctuations in the portfolio value over time including negative portfolio return not only for a short period of time but also for longer periods. Therefore you accept that time is needed for high average return to materialize into clear accumulation of wealth; i.e. you have a long investment horizon.

 


Expected return from investment products cannot be considered as a guaranteed amount due to the fat that it is based on historic results and events in the previous period. The expected return does not provide a precise indication of the results in the future. Actual return might differ from the assumptions of the expected return indicated in this material. The value of the investment portfolio might increase or decrease on the basis of the events taking place in global financial markets that are influenced by several risk factors.

Luminor shall not bear responsibility for any loss that might occur to the client when acting in compliance with the information provided in this material. Assumptions and other aforementioned information depict the view of Nordea on the date when the material was prepared but it might change in the future without notifying about it to the client.

Luminor indicates that when relying on the indicated investment offer it is necessary to review the structure of the investment on the regular basis in line with the changes in the financial market.

In accordance with the Law of the Republic of Latvia “On Personal Income Tax”, the income of individual persons that is gained from the increase of capital is subject to the Income Tax. Luminor does not provide recommendations for solving taxation, accounting or legal issues.

This offer has been created on the basis of the Policy of Determining the Status of the Customers, the Policy of Order Fulfilment, the Policy of Interest Conflict Management, the Review of the Risks Related to the Investments that are available in the webpage.

The information provided in this material cannot be considered as a complete depiction of financial risks concerning the products offered and it cannot be seen as a comprehensive basis for making decisions regarding investments. Customers must assess themselves the compliance of the information included in the material to own interests. It is prohibited to copy, disseminate or publish this material in any way without receiving a written consent from Nordea.

The simplified model portfolio offers equal placement of resources up to maximum extent in order to ensure optimum allocation of the assets; in the result of this, the return of simplified and diversified model portfolios might slightly differ.