MIMS – Diversified Passive Selection Fund (Report May 2024)

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 5%, now constituting 45% of the total allocation. To be well positioned for the new opportunities that the upcoming loosening monetary policy will create, we decided to focus on sectors that historically tend to perform well in these economic conditions. We allocated 15% of our portfolio on the Chinese and Indian stock markets. Our fixed income allocation is concentrated on short duration for the US and longer duration in Europe. The fixed income component consists mostly of government bonds, given the low corporate spread. We are also invested in a well-diversified range of soft commodities and base metals.

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