MIMS – Diversified Passive Selection Fund (Report December 2023)

The fund is composed of a range of Exchange Traded Funds selected by the Portfolio and Quantitative Research teams. These ETFs aim at replicating as closely as possible the performance of a basket of securities with specific common properties, thus being effective instruments for investors who wish to express a certain view on industry sectors or economic trends whilst capturing as little idiosyncratic risk as possible.

In comparison to the previous semester, we have bolstered the fund’s equity component by 10%, now constituting 40% of the total allocation. However, we’ve implemented a slightly defensive stance within the equity strategy, focusing on Value Stocks, Consumer Staples and the Pharmaceutical sector. This cautious approach stems from our outlook on a potential recession or general economic slowdown. Concerning Emerging Markets, we gain exposure to India, aiming to take advantage of the country’s growth potential while deliberately avoiding exposure to China.

Check out the report to know more about our ETF selection for the next six months!